A new statement from a member of Parliamentary Finance regarding the 2021 budget

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A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed today, Friday, that his committee will check all the numbers contained in the draft federal budget law for the country for the year 2021 as soon as it reaches the parliament.

Cougar said in an exclusive interview (Baghdad Today), “The large deficit in the budget bill delayed its arrival to the House of Representatives,” indicating that “the government knows very well that this large deficit will prevent Parliament from passing it.”

He added, “The second reason is the failure to resolve the agreement between the central government and the Kurdistan Regional Government in order to translate it into clauses within the draft 2021 budget.”

He pointed out that “the Parliamentary Finance will check all the numbers contained in the draft law, as well as the extent of achieving justice in the distribution of wealth, especially as there is a state of dissatisfaction in the southern governorates.”

And (Baghdad Today) Agency, Thursday (December 17, 2020), obtained a “ preliminary copy ” of the draft federal budget bill for the year 2021, which included setting the dollar exchange rate at 1450, and reducing employee allocations.

The draft law included setting the exchange rate of the dollar on the basis of 1450, equivalent to 145,000 dollars per 100 dollars, and restricting all actually generated revenues as final revenues to the account of the state treasury.

The budget stated that the number of state employees is 3.25 million, including (682 thousand employees in the Kurdistan region), salaries 41.5 trillion dinars, other salaries 6 trillion, retirement 20 trillion, social security 9.6 trillion, interest on debt loans 4,6 Trillions, offshore loan payments: 6.8 trillion.

The project included the reduction of all allocations granted to employees of all government departments financed centrally and independently, according to the percentages specified against each of them and granted to them according to laws in force and decisions of the Council of Ministers and came as follows:
(risk allocations 50%, hospitality 20%, exceptional 20% livelihood 33%, certificate 50% broken, 40% own 60% university Service 60%). ” the
project also provides for raising the price of fuel (gasoline) from 450 dinars per liter, to 540 dinars per liter.

the authorized budget , the Minister of Finance, to fill the actual budget deficit, according to The amounts shown in the sources mentioned below:

1- Issuing treasury transfers, 2- Issuing national bonds to the public, 3- Issuing bonds and treasury transfers to government banks, to be debited with the Central Bank of Iraq, 4- Loans from commercial banks, 5- Issuing foreign bonds, 6- Borrowing from international financial institutions, 7- Borrowing with the guarantee of international export guarantee institutions.

The budget indicates that all loans, bonds, transfers, and loan-financed project contracts will be exempt from taxes and customs fees for ongoing and new projects, including the loan granted by the World Bank to the Ministry of Finance for the draft Public Financial Management System contract for the years 2016, 2017, 2018 and 2019. The
2021 budget obliged the federal ministries And entities not associated with a ministry and all governorates to cover their needs of local products, including private sector products that have an added value of more than (20%).

The draft budget concluded that the Council of Ministers may not issue any decisions that include granting an advance to any ministry or entity not linked to a ministry without having allocations for it in the general budget approved during the fiscal year.

The project included the suspension of all cabinet decisions and laws in force that allow the centralized state departments to dispose of the revenues collected through them for the purposes of operating expenses, and their revenues are transferred as final revenues for the account of the state’s public treasury, including the state’s public treasury’s share of the profits of public companies and self-financed bodies and departments.

The financial deficit in the budget reached (58260763114) one thousand dinars (fifty-eight trillion two hundred sixty billion seven hundred and sixty-three million one hundred and fourteen thousand dinars), and in the case of excluding all arrears, indebtedness and foreign and local loans that will finance investment projects amounting to (23229017817) one thousand dinars (three Twenty trillion two hundred twenty-nine billion and seventeen million eight hundred and seventeen thousand dinars).

The indebtedness represented by internal and external debt installments reached (14761959590) one thousand dinars (fourteen trillion seven hundred and sixty-one billion nine hundred and fifty-nine million five hundred and ninety thousand dinars).



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