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[size=36]Corona and low oil prices .. Iraq is losing 75 million dollars a day and a crisis in providing salaries[/size]
Economy | 05:40 - 09/03/2020
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Special- Mawazine News The
Iraqis have awakened to the news that oil lost a third of its value due to the failure of the OPEC countries agreement to reach a new agreement to determine the volume of production, in addition to the spread of the Corona virus around the world.
Oil prices fell to about $ 37 a barrel, which is the lowest price in nearly 20 years, and in light of Iraq’s reliance on oil in its budget, economists warned of the impact of this decrease on Iraqi revenues and the provision of basic supplies and salaries to employees.
Sources spoke to / Mawazine News / about a significant decrease in Iraqi revenues, as a result of the drop in oil prices and the outbreak of the Corona virus, which caused the closure of factories and companies in Asian countries that request Iraqi oil.
The sources said in an interview with "Mawazine News" that "the funds held by the government do not cover the salaries of the next three months, and in the event of lower oil prices, this will cause a major crisis in providing salaries and other government obligations towards the ruling expenditures, including the purchase of medicines."
She pointed out, "The cost of producing a barrel of oil reaches 9 dollars, and there is another cost, and these all affect the volume of revenue." Noting that "there are about 700,000 employees daily wages and contracts they have not received their salaries for 4 months."
The appearance of Mohammed Saleh, the financial advisor to the Prime Minister, revealed the size of Iraq’s economic losses (the difference in oil prices) due to the Corona virus, ranging from (50 to 75) million dollars per day, while clarifying the salaries of employees, retirees and social welfare.
Saleh said, "The continuation of the decline in oil prices in the global markets due to the Corona virus over a full financial year will create a problem in the governmental financial position," noting that "the only solution to overcome this crisis is to support resources and revenues."
He added that "this crisis requires the state to go towards external borrowing to bridge the federal budget deficit, which will be exacerbated by very large numbers," noting that "the current budget deficit amounted to more than fifty billion dollars due to increased expenditures after calculating the price of a barrel of oil at 56 dollars per barrel."
Saleh added that "the additions that got the public job by the current government headed by Adel Abdul Mahdi are estimated at about half a million new employees for this year from a group of four million employees," pointing out that "
The financial advisor stated, "The biggest cost in the federal budget for 2020 is the (current) operating budget, which constitutes 77% of its total volume annually, and includes the salaries of employees, retirees, social welfare, and requirements for operating the public job," noting that "changing The size of the operational budget is difficult. "
Saleh pointed out that "the government pays about (4) billion dollars a month as salaries for the employees of the Iraqi state," noting that "the daily caretaker government is also not authorized to take many positions to address this current economic crisis," stressing that "the size of the deficit will worsen After the decline in oil prices to about forty dollars per barrel, but it is difficult to predict its total volume, pointing out that "the Corona crisis has stopped the Chinese economy, which is the locomotive of the global economy, and therefore will affect the levels of the global economy."
The financial advisor estimated, "Iraq’s economic losses (the difference in oil prices) due to the Corona virus are between (50 to 75) million dollars per day," stressing that "the financial department of the Ministry of Finance is making continuous and continuous updates to the general budget law" .
The government adviser proposes, "Restructuring the federal budget according to the current oil prices to reduce the deficit and address all problems and challenges by reducing many non-binding expenses," noting that "the Ministry of Finance has evidence and plans (A), (B) and (C) to meet All expected financial crises, and thus the budget law will be ready in the event that any new government takes over, it will vote on it before it is sent to parliament for approval. "
For his part, economist Amer Al-Jawahiri said, "The harm of low oil prices to the Iraqi economy will be very large, but the most important question is what government measures to address this damage in light of the indications for months of low oil prices, especially since Iraq depends in its budget on oil and not There are alternatives to revitalizing the economy. "
He added in an interview with "Mawazine News", that "some say that the measures to bridge the deficit are by imposing taxes and relying on customs revenues, but these solutions only provide 10% of the budget and now the imports are declining and this reduces revenue."
He pointed out that "there is no party in Iraq that works and warns of remedies for economic crises," noting that "there is a need for the state to revitalize the economy by supporting projects even if they are small, because this will feed the labor market and thus feed the economy."
And, "This crisis is an opportunity for the state to search for space employees and fight corruption, because investigating corruption will provide large sums to the state."
He pointed out, "The price of the dollar, whether it rose or decreased, Iraq will remain in crisis, because during the previous years the price of a barrel of oil amounted to 100 dollars and governments did not establish development projects for the economy." Ended 29 / h
Iraqis have awakened to the news that oil lost a third of its value due to the failure of the OPEC countries agreement to reach a new agreement to determine the volume of production, in addition to the spread of the Corona virus around the world.
Oil prices fell to about $ 37 a barrel, which is the lowest price in nearly 20 years, and in light of Iraq’s reliance on oil in its budget, economists warned of the impact of this decrease on Iraqi revenues and the provision of basic supplies and salaries to employees.
Sources spoke to / Mawazine News / about a significant decrease in Iraqi revenues, as a result of the drop in oil prices and the outbreak of the Corona virus, which caused the closure of factories and companies in Asian countries that request Iraqi oil.
The sources said in an interview with "Mawazine News" that "the funds held by the government do not cover the salaries of the next three months, and in the event of lower oil prices, this will cause a major crisis in providing salaries and other government obligations towards the ruling expenditures, including the purchase of medicines."
She pointed out, "The cost of producing a barrel of oil reaches 9 dollars, and there is another cost, and these all affect the volume of revenue." Noting that "there are about 700,000 employees daily wages and contracts they have not received their salaries for 4 months."
The appearance of Mohammed Saleh, the financial advisor to the Prime Minister, revealed the size of Iraq’s economic losses (the difference in oil prices) due to the Corona virus, ranging from (50 to 75) million dollars per day, while clarifying the salaries of employees, retirees and social welfare.
Saleh said, "The continuation of the decline in oil prices in the global markets due to the Corona virus over a full financial year will create a problem in the governmental financial position," noting that "the only solution to overcome this crisis is to support resources and revenues."
He added that "this crisis requires the state to go towards external borrowing to bridge the federal budget deficit, which will be exacerbated by very large numbers," noting that "the current budget deficit amounted to more than fifty billion dollars due to increased expenditures after calculating the price of a barrel of oil at 56 dollars per barrel."
Saleh added that "the additions that got the public job by the current government headed by Adel Abdul Mahdi are estimated at about half a million new employees for this year from a group of four million employees," pointing out that "
The financial advisor stated, "The biggest cost in the federal budget for 2020 is the (current) operating budget, which constitutes 77% of its total volume annually, and includes the salaries of employees, retirees, social welfare, and requirements for operating the public job," noting that "changing The size of the operational budget is difficult. "
Saleh pointed out that "the government pays about (4) billion dollars a month as salaries for the employees of the Iraqi state," noting that "the daily caretaker government is also not authorized to take many positions to address this current economic crisis," stressing that "the size of the deficit will worsen After the decline in oil prices to about forty dollars per barrel, but it is difficult to predict its total volume, pointing out that "the Corona crisis has stopped the Chinese economy, which is the locomotive of the global economy, and therefore will affect the levels of the global economy."
The financial advisor estimated, "Iraq’s economic losses (the difference in oil prices) due to the Corona virus are between (50 to 75) million dollars per day," stressing that "the financial department of the Ministry of Finance is making continuous and continuous updates to the general budget law" .
The government adviser proposes, "Restructuring the federal budget according to the current oil prices to reduce the deficit and address all problems and challenges by reducing many non-binding expenses," noting that "the Ministry of Finance has evidence and plans (A), (B) and (C) to meet All expected financial crises, and thus the budget law will be ready in the event that any new government takes over, it will vote on it before it is sent to parliament for approval. "
For his part, economist Amer Al-Jawahiri said, "The harm of low oil prices to the Iraqi economy will be very large, but the most important question is what government measures to address this damage in light of the indications for months of low oil prices, especially since Iraq depends in its budget on oil and not There are alternatives to revitalizing the economy. "
He added in an interview with "Mawazine News", that "some say that the measures to bridge the deficit are by imposing taxes and relying on customs revenues, but these solutions only provide 10% of the budget and now the imports are declining and this reduces revenue."
He pointed out that "there is no party in Iraq that works and warns of remedies for economic crises," noting that "there is a need for the state to revitalize the economy by supporting projects even if they are small, because this will feed the labor market and thus feed the economy."
And, "This crisis is an opportunity for the state to search for space employees and fight corruption, because investigating corruption will provide large sums to the state."
He pointed out, "The price of the dollar, whether it rose or decreased, Iraq will remain in crisis, because during the previous years the price of a barrel of oil amounted to 100 dollars and governments did not establish development projects for the economy." Ended 29 / h
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