United Nations: The budget deficit in Iraq will reach an unprecedented level
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Baghdad / Al-Akhbariya
The United Nations Development Program suggested that the budget deficit in Iraq will reach an unprecedented level in 2020.
The Resident Representative of the United Nations Development Program in Iraq, Zeina Ali Ahmed, said that "although the financial conditions and economic conditions in Iraq have been largely positive in the past few years, two major crises have delayed progress, namely the oil crisis and the Corona pandemic."
She added: "This has left significant impacts on the population, especially in the areas of income, jobs and poverty, with a real possibility of significantly high levels of inequality. For example, the report revealed that private sector employees in Iraq are more vulnerable to poverty risks than workers in the public sector, no Especially those with low incomes and workers in the informal sector, as well as families headed by women.
According to the report, it is expected that the gross domestic product of Iraq will decrease by about 10% in 2020, and that the budget deficit in the same year will reach an unprecedented level of nearly 30% of the GDP.
The approach that the United Nations Development Program is proposing to the Iraqi government and other key stakeholders to plan for Iraq's economic recovery is twofold:
(1) The need to quickly identify additional financing options, avoid ill-considered monetary reforms, and improve the quality and targeting of public spending.
(2) Supporting the non-oil private sector in achieving growth and reducing dependence on oil, while continuing to provide job opportunities for a large number of the most vulnerable and low-income families by expanding the scope of social assistance programs.
Zina Ali Ahmed affirmed that "the United Nations Development Program and its partners are ready to support the Government of Iraq in implementing these measures, to achieve economic stability and ensure the protection of the most needy people."
The report continued, "The impact of the oil crisis and Covid-19 on the fragility of Iraq," which was issued in August 2020.
According to the report, it is expected that "the gross domestic product of Iraq will decrease by about 10% in 2020, and that the budget deficit in the same year will reach an unprecedented level of nearly 30% of the GDP."
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