On Sunday, a member of the Finance Committee in the House of Representatives, Muhammad Al-Darraji, commented on the statements of Finance Minister Muhammad Allawi on the employee salaries crisis.
Al-Darraji wrote in a tweet on Twitter, followed by "People" (October 4, 2020): "In our hosting of the Ministers of Finance and Planning on September 10 in the House of Representatives about non-compliance with the borrowing law by submitting a reform paper, a pledge to submit a draft by the end of September and a final copy applicable in mid-October. ".
He added, "Today, they did not submit a draft. They want to borrow again from the central bank’s reserves."
Finance Minister Ali Abdul-Amir Allawi said that paying employees' salaries is a matter related to the House of Representatives voting on the borrowing law, stressing that this step will address the current deficit in the country.
Allawi added, in a statement to the official agency, followed by "People" on Sunday (October 4, 2020), that "the salaries of retirees for the current month were launched without any problem, pointing out that the salaries and allowances of employees will be launched during the next few days or weeks."
He added, "The amounts will be available if the House of Representatives approves the borrowing law," stressing that "the borrowing law is very important because it meets the financial needs of the state and addresses the deficit in the budget."
The Parliamentary Finance Committee confirmed, earlier Friday, that the fiscal deficit is a temporary condition in Iraq, but the Minister of Finance has the powers to take immediate action.
The committee's reporter, Representative Ahmed Al-Saffar, said in a statement to the official channel, followed by "People" (October 2, 2020), that "the current deficit is a temporary and embarrassing deficit for the government and parliament, because there is a slight deficit to finance the salaries of the month of September, which the government is late in paying." Noting that "in the event of waiting for the submission of the draft budget or the submission of a new loan law, the issue will be delayed by more than a week, 10 days, or maybe more, and this will lead to a lot of embarrassment."
He added that "according to the public finance literature, the Iraqi constitution, and the Financial Administration Law, if there is a slight deficit, the Minister of Finance has the powers to take immediate action," indicating that "there are two types of debt; real fixed debt which results from a significant decrease in real revenues versus expenditures." The public deficit is a permanent and permanent deficit and it is called the fixed debt, but the current deficit in Iraq is a temporary deficit, and the debt is called a debt remaining in the public finances and it is possible to put up temporary treasury bills that express the existence of revenue but it is a delayed income. Future. "
He continued, "Iraq does not have a financial crisis because it has resources, but the state and the government cannot access them, so the current deficit in Iraq is a temporary deficit, and the debt is a debt and the deficit can be paid in the future," indicating that he "proposed to get out of this distress." The great embarrassment for the government is for the Finance Minister to move to offer bills and immediate borrowing from Iraqi banks or the central bank to pay salaries. Then the move will take place a week later when Parliament starts its sessions and the normal situation in Baghdad returns after the forty-day visit.
Al-Saffar pointed out that "the draft budget was delayed sending it to the House of Representatives, and there was only one night remaining in the Parliament's Office and it was withdrawn by the government until the Finance Committee did not see it. I do not know the reasons behind the withdrawal of the project and this embarrassment to the House of Representatives by the Ministry of Finance is never acceptable because The error and defect is the lack of monetary and financial policies in Iraq. All that exists is that they are waiting for debts and financing the operating budget. "
Al-Saffar stressed that "the parliament is ready to hold any emergency session in order to solve the current crisis. It is possible to borrow immediately and then remedy the situation after a while because it is not correct that the employee waits for days without a salary and this is his only source of income."
He pointed out that "there are two solutions; either submitting the draft budget as soon as possible until it is approved, or resorting to new borrowing if the government is able to obtain Parliament's approval because the issue of debt in Iraq has become in a very dangerous range and leads the Iraqi economy to the unknown."
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