Economists warn of recession because the draft budget for 2020 is not approved
[You must be registered and logged in to see this image.] |
The Economy News - Baghdad
Economists feared the repetition of the 2014 experience by making Iraq without a financial budget, as a result of the political tension resulting from the ongoing protests since last October, which led to the resignation of the government headed by Adel Abdul-Mahdi and its transformation into a caretaker government that is not authorized to send the draft budget budget to Parliament .
The current year’s budget (according to the government’s proposed project) is 162 trillion dinars (135 billion dollars), with a planned financial deficit of 48 trillion dinars (40 billion dollars), including three trillion dinars (2.5 billion dollars) to implement the projects agreed with China .
The government was late in sending the draft budget to include the reform decisions that cost the country more than ten trillion dinars ($ 8.3 billion ).
And the financial advisor to the Iraqi government, Dr. Mazhar Muhammad Salih, warned of the dangers of not approving the draft budget this year and entering Iraq into a depression six months from now .
Saleh said that public spending in Iraq constitutes about 45% of the gross domestic product, and that this spending and its high composition through a planned annual budget have wide positive effects on achieving the real planned growth rates in the national product itself and in particular the use of the main production forces .
He pointed out that the delay in approving the budget means a delay in the completion of new investment projects covered by the allocations of the federal budget 2020, and it will give a negative signal to investors in the private sector to start their investments .
Saleh added that stopping the approval of the budget and the failure of the planned or new investment spending will lead to increased unemployment rates and high poverty rates due to the annual growth of the population and the workforce that aspires to work, and thus will interfere with many interconnected and dependent interests on investment spending, especially the new government that ultimately leads To stagnation .
He added that the continuation of the recession for more than six months leads inevitably to the recession, which means that the economic losses will widen for the joints of the economy on a large scale, and this is what must be avoided .
Meanwhile, member of the Parliamentary Finance Committee, Ahmed Hama, said that the financial budget for Iraq is now spent according to the "12/1" mechanism, which means spending on salaries only, and this will harm the country's economy because it will disrupt development, noting that the resigned government was late in sending the bill to Parliament because of the high deficit .
He added that the new government takes several days to send the draft law to parliament, and the project also needs to be read and approved in parliament for some time, so we may exceed the first quarter of this year without a budget .
He noted that Iraq will not be able to implement the Chinese agreement, because its provisions are part of the budget and need to be approved by Parliament .
For his part, Iraqi economist Aqeel Al-Ansari said that the delay in approving the budget has major negative repercussions on the Iraqi economy, as it would send an unsuspecting message to investors and delay the investment operations in small and medium projects, while large projects are now suspended .
He pointed out that the financial budget in Iraq has two wings, one operational and one investment, and that delaying the approval of the budget means converting the budget into a payroll budget only and canceling the investment, and consequently high unemployment and its economic consequences such as entering the country in an economic recession, especially in light of the low demand for oil (The main source of income in the country) after the spread of the Corona virus in China .
Al-Ansari added that if the situation remains as it is, it means increasing chaos and organized crime, opening the door to thefts from political rulers and power parties, and continuing the popular curse of the political system in general .
[You must be registered and logged in to see this link.]
» Militia Man & Crew Fitch Affirms Iraq at 'B-'; Outlook Stable
» utube 12/09/23 Iraqi Dinar:Exciting News Iraqi Dinar RV Of IQD Done Desperately Today Good News C
» utube 12/08/23 Militia Man & Crew Iraq Dinar International - Gateway - Local Currency - Sustainab
» Regional mediation between Baghdad and Erbil to resolve the “financial crisis”
» Al-Sudani directs that officers and members of the holding units be referred for investigation and t
» More than a billion dollars in sales from the Iraqi Central Bank within a week
» Adviser to the Prime Minister: Initiating procedures for establishing the Carbon Economic Company
» Romanowski comments on "the positions of the main Iraqi forces" following the bombing of the America
» Between production and export.. How much does Iraq lose as a result of its voluntary reduction in oi
» Iraq rejects attempts to target "fossil fuels" at the climate conference
» Al-Halbousi directs to hold a meeting for his supporters in Jordan
» Parliamentary efforts to increase the salaries of members of the Popular Mobilization Forces
» Anbar tribes warn of an American plan to disrupt the security situation ahead of the local elections
» Parliamentary Defense reveals the most important contents of the report on the American aggression a
» Deputy: Residential investment complexes will not solve the crisis due to their high prices
» A parliamentarian reveals “secret meetings” regarding choosing Al-Halbousi’s replacement and sets a
» Iraq is ranked 81st in the world in terms of per capita carbon emissions
» Local administration: The investigation committee is investigating the reason for the high casualty
» A reading of the regulatory procedures for Iraq’s foreign trade
» Iraq's oil exports to America decreased last week
» A center indicating that the Iraqi citizen is exposed to “major depletion” due to the dollar and gas
» Foreign Minister: Iraq is a safe environment for investment and open to Spanish companies
» Prime Minister: We have more work to do to recover our people’s money and pursue the corrupt
» Integrity: Iraq has taken serious steps in the field of combating corruption
» “We reserve the decisive response.” Washington informs Sudanese of its decision regarding the attack
» Judge Zidane: Confronting drugs requires a comprehensive national strategy
» “International mediation” between Baghdad and Erbil... a meeting of ambassadors to resolve the “fina
» Exporting Iraqi products to Kuwait
» In continuation of supporting the category of returnees... the Ministry of Immigration distributes (
» The Iraqi Stock Exchange index rose by 7.1% last November
» A scandal that shakes Iraq...the loss of 35 trillion dinars in print
» The Prime Minister's advisor points out the economic strengths of the partnership between Iraq and S
» Pentagon: Hezbollah and Harakat al-Nujaba are behind the attacks against our forces
» Iran is pressing to activate the Iraq-Syria transit line
» Al-Abadi on the bombing of the American embassy: Security and stability are not a commodity in the m
» The coordination framework declares its support for the government’s measures and its keenness to pr
» US Secretary of Defense to Sudanese: We reserve the right to respond
» Sudanese Advisor: The government is determined to take measures to protect the security and interest
» Al-Sudani warns against direct response to targeting the American embassy without government approva
» The Foreign Minister to his Spanish counterpart: Iraq today represents a safe environment for invest
» Head of the Supreme Judicial Council: Combating drugs requires a comprehensive national strategy
» Al-Sudani calls on the Presidency of the Republic to ratify all death sentences for those convicted
» Integrity and the US State Department discuss extending cooperation between the two countries in the
» Iraq plans to invest in the population increase and turn it into effective development engines
» The Sudanese government plans to establish 44 new pharmaceutical factories in Iraq
» Iraq and France are discussing enhancing economic cooperation and developing trade exchange
» Election Commission: Voting time will start from seven in the morning until six in the evening
» Iraq and the United States of America discuss bilateral cooperation relations in the security fields
» Al-Sudani chairs a security meeting to discuss targeting the American embassy
» A list of the exchange rates of the dollar against the Iraqi dinar today.. recorded an increase
» Al-Sudani receives a call from the US Secretary of Defense.. This is what it said
» Al-Sudani calls on the Presidency of the Republic to approve the execution of those convicted of dru
» utube 12/08/23 Iraqi Dinar Today 2023 / Iraqi Dinar News Today / Iraqi Dinar
» The Prime Minister blesses the activation of the partnership between the Iraqi and Saudi private sec
» Planning: 11 axes to invest in the population increase and transform it into effective development e
» Advisor Mazhar Saleh: The economic geography of Iraq and Saudi Arabia constitutes an important found
» Al-Maliki: The best way to remove the corrupt is to go to the election ballots
» Al-Sudani: Parliament members have the final say in choosing the president
» The Kurdistan Region warns of a mass migration of Iraqis to other countries in the future
» "Embassy missiles" fall on the National Security headquarters, and the agency threatens the "bombers
» There are more obstacles than solutions.. The housing sector in Iraq: The need for more than 5 milli
» China reduces entry visa fees for Iraqis wishing to enter its territory (table)
» Al-Abadi on the bombing of the American embassy: Security and stability are not a commodity in the m
» Political conflicts and tension between Al-Halbousi and the governor.. What is happening in Anbar?
» Fatah leader: America created Al-Hawl camp to threaten the security of 7 Arab countries
» The Minister of Immigration instructs to solve the problems of returning families in Diyala
» Why was Iraq's "voluntary" reduction the largest in OPEC+?
» Regional Government: January 10th, official working hours in all Kurdistan districts
» Coinciding with International Anti-Corruption Day...the Ministry of Immigration holds a ceremony in
» The Federal Court rules that the instructions for conducting daily business in the Al-Kadhimi govern
» Head of the Kurdistan Council of Ministers: Our talks with the federal government will continue, and
» Three types of water violations were identified... Water Resources announces the introduction of gro
» Australian readiness to consolidate relations with the Kurdistan Region in the fields of investment
» There are more obstacles than solutions.. The housing sector in Iraq: The need for more than 5 milli
» The US Embassy in Baghdad urges the Iraqi government to protect diplomatic personnel
» Sudanese directs the prosecution of the perpetrators of the attack by launching projectiles towards
» Provincial council candidates are competing for two hundred and seventy-five seats
» With a new decision.. How will Iraq lose 6% of its oil exports?
» Georgetown Center for Studies: The killing of Americans in Iraq and the regional war is “a matter of
» Iraq.. Online food delivery will generate $845 million in 2023
» The US embassy in Baghdad confirms that it was hit by two missiles
» Directives from Sudanese regarding the bombing of the American embassy in Baghdad
» “No vacation until the end of the year.” The Minister of Finance issues a directive to the employees
» utube 12/5/23 Militia Man & Crew Iraq Dinar - Reality - Internationalism - Investors - Revaluatio
» The Ministry of Commerce decides to open sales outlets for those covered by social care in installme
» Minister of Oil: Iraq's decision to reduce OPEC Plus to achieve balance and stability in the markets
» Despite sending money from Baghdad.. Politician: The regional government refuses to release employee
» Baghdad is a cash cow...and the regional government steals the camel with what it carries
» Anbar Environment monitors violations of land conversion in Ramadi
» Federation of Arab Stock Exchanges: The Iraqi Stock Exchange accounted for 61% of November trading
» The Minister of Labor reveals a campaign to grant loans and plans to expand the employment process f
» Southern Gas: The agreement with the French company Total includes 4 main projects
» Sudanese directs to suspend working hours on Sunday
» Revealing the latest developments in choosing the new President of Parliament
» Media and Communications signs a contract with Azerbaijan to protect civil aviation radio navigation
» Al-Party accuses “sectarian” parties of delaying sending the $700 billion to the region
» The Kurdistan Oil Industry Association announces the joining of an American company
» A fine of 3 times the price.. Iraq reveals how to deal with goods that “violate specifications”