Observers: The salary crisis is returning again..and the Kazemi government is in trouble
Talk escalates again about the possibility of the government securing employee salaries for the coming months, as the financial crisis still exists without any government solutions.
The delay in paying employees' salaries in Iraq caused an uproar in the popular and political circles, after about half a month had passed since the payment was due.
The country's employees, as well as retirees and holders of social protection contributions, did not receive their salaries and dues for the month of June, despite the passage of about 15 days from the date of disbursement of some departments.
Observers believe that in light of the fact that oil and non-oil revenue funds are not sufficient to cover operational expenses, the threat of the [You must be registered and logged in to see this link.] insurance crisis still exists, as the total revenues for the past month amounted to about four billion dollars, while the government actually needs to pay the expenses, including [You must be registered and logged in to see this link.] to about six Billions of dollars a month, at a time when [You must be registered and logged in to see this link.] pays about fifty billion dollars in salaries to civil employees, the military, retirees and holders of social welfare contributions.
While Wa stressed that the ongoing political differences between the blocs are among the most important obstacles in submitting the economic reform paper by the government, and the Finance Committee in Parliament revealed the government's intention to borrow, in order to pay the salaries of employees and retirees during the remaining months of this year as well as next year.
Representatives in the Iraqi parliament denounced this delay, especially after the borrowing law was enacted, which allowed the government to obtain internal and external loans to finance spending.
The deputy in Parliament, Mansour Al-Baiji, said that “there is clear confusion with state institutions, including the Ministry of Finance, given that the Prime Minister had instructed them to pay the salaries of employees and retirees about seven days ago, and the Ministry of Finance has not disbursed [You must be registered and logged in to see this link.] to this day and it has not been clarified. The reason behind this ”.
He added in a statement, “The House of Representatives legislated the internal and external borrowing law in order to provide financial liquidity, and the law was approved, and the competent authorities announced the provision of liquidity, but [You must be registered and logged in to see this link.] were not spent,” noting that “delaying the payment of [You must be registered and logged in to see this link.] harms a large segment of the Iraqi people. It is not possible to allow a matter like this that affects the citizen’s life while we are living through a major health crisis, and delaying the payment of [You must be registered and logged in to see this link.] exacerbate this crisis.
A warning of the hungry revolution
. Economic observers believe that, with the presence of about 7 million people among a civil and military employee, retired person and beneficiary, the [You must be registered and logged in to see this link.] paid by the government are the driving wheel of the country's internal economy, and any prejudice to it may lead to repercussions similar to the protest movement.
The Iraqi government also funds the "ration card" program, which consists of foodstuffs given to all citizens every 40 days, such as: rice, oil, sugar, and flour.
A member of the Iraqi Academics Syndicate, Taher Maarouf, a government employee, said, “The salaries are more than half a month late, and this is unacceptable. We have to pay our financial obligations.
He added, “The policies that ruled [You must be registered and logged in to see this link.] During the past years, it led us to this deteriorating state, with the state extending its hand to the salaries of employees. ”
[You must be registered and logged in to see this link.] pays about $ 50 billion in salaries to government employees, the military establishment, retirees and holders of social welfare contributions, such as: divorced women, widows, and victims of military operations as a result of the confrontation with ISIS.
While the employee of the Sunni Endowment Office, Yunus Al-Ghazali, confirms that “the endowment pays the salaries of its employees, on the twentieth of every month, but now 12 days have passed without us receiving notifications on our phones about salaries, and we do not know their fate.”
He added, "The government has resorted to the easiest option in dealing with the financial crisis, which is to deduct and delay the salaries of employees, without prejudice to other aspects of the state's expenditures, and without recovering the stolen money."
He continued, "We may go out in popular protests, to express our anger at this illegal practice."
Large financial deficit
In turn, [url=https://www.thebaghdadpost.com/ar/Story/t/1486/%D8%A7%D9%84%D8%A8%D9%86%D9%83 %D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A]the Central Bank of[/url] Iraq confirmed that employees ’salaries will be disbursed next week.
The bank’s general manager of accounting, Ihssan Shamran, said in a statement that “bonds have been re-deducted in favor of the Ministry of Finance by about 8 trillion dinars (7.5 billion dollars), and the Ministry of Finance will be able to secure employee salaries for the months: July, August and September.”
He pointed out that “employee salaries are likely to be disbursed at the beginning of next week,” stressing that “the central bank has a major role in facing the current financial crisis.”
Official data indicate a large fiscal deficit, amounting to about $ 45 billion, in the 2020 budget, which has not yet been approved.
With the drop in oil prices following the outbreak of the Corona pandemic, [You must be registered and logged in to see this link.] revenues have decreased significantly, which has exacerbated the financial crisis in the country.
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