[size=36]The Minister of Finance talks about the price of oil and the exchange of the dollar in the budget[/size]
Political| 08:15 - 02/03/2021
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BAGHDAD - Mawazine News
, Minister of Finance, Ali Allawi, announced, on Tuesday, the inclusion of lecturers, doctors, and degrees of deletion and introduction in the federal general budget for the fiscal year 2021.
Allawi said, according to the official agency, that "Iraq has gone through a stifling financial crisis, as state revenues in 2020 became the lowest since 2014, indicating that "the white paper began not only with the rationalization of expenditures, but rather focused on the known sources that require reform, fundamental change and leanness of expenditures, and the principle of economic pricing was introduced because the main inputs are subsidized, and these reflect the pricing revenues of oil inputs to distribution companies and refineries companies."
He added, "Iraq has started building al-Qaeda and developing it in the future in order to reduce our dependence on oil revenues," noting that "the ministry is trying to solve decades-old accumulated problems that cannot be neglected without addressing the joints affected by these wrong policies, as this requires a large package of reforms." .
Allawi continued, "We cannot proceed with economic development and put Iraq on a new economic path without addressing the problems," explaining that "the white paper focused on addressing 600 measures that occur in 60 specific packages within 3 to 5 years, and are applied to all major state joints from Ministries to bodies that require persistent and continuous work. "
He pointed out that "it is not possible to fix a certain thing without knowing its impact on other sectors, as it is a complex network and the method of dismantling it on a regular basis needs specific timings."
Obstacles to the implementation of some provisions of the reform paper
Allawi stressed that "there are obstacles to the implementation of reform because every reform will affect and affect certain parties," noting that "despite our conviction as a state and as a people of the necessity of reform and putting Iraq on track, without total reliance on petroleum materials, that requires that we face difficulties and provide solutions that do not." Greatly affect the fragile layers. "
He continued, "These measures will face reactions and perhaps resistance, for example we cannot avoid the necessity of completing all government institutions," noting that "in the 21st century, Iraq cannot remain late, and the philosophy and policy of the private sector cannot be adopted and supported if the obstacles are not removed." Existing in each of the joints, which must be disassembled in a scientific and objective way, which can affect the short stage, but on a medium and long term, as all of them are necessary.
Budget adjustments
Allawi continued that "until now, we do not know the final form of the general budget for 2021, which has not yet been submitted to the vote," noting that "according to our contacts, the terms of the budget did not change much, especially after the agreement that we reached with the Finance Committee in the House of Representatives, as The reforms and changes that the committee requested from it to include a large part of the contracts in the budget that does not exist in it. "
Allawi stressed, "Regarding the deficit, it has decreased to about 30 trillion dinars," explaining that "this is within the capabilities of the government funded locally and abroad without affecting the public debt without affecting the ceilings."
The final price of a barrel of oil in the budget
Allawi said, "With regard to the price of oil, when the government presented the budget, the price of a barrel of oil was $ 42, now it has changed to $ 45, and this price is very reasonable and final," adding that "indications are that the price will be relatively conservative. Real revenues will be more, because they give us." A kind of flexibility to shift resources to points where they were scarce. "
Allawi stated that "the ministry has basic projects that have been developed, especially in support of the poor and support for the treatment of Corona and social welfare, but there are other detailed issues, but in general are the reductions that the House of Representatives introduced to the budget will be presented in an acceptable way," noting that "the main reductions are how to address Delays, the ministry has arrears that must be met. However, the Finance Committee in the House of Representatives decided to postpone and leave for periods of time. Likewise, with regard to internal debts, these items are not considered as a fundamental disagreement, but a procedural one. "
Allawi stressed, "We expect that the House of Representatives will place an income tax on all salaries and all allocations, and we do not have any forms. This is another way, and this will lead to a reduction in the expected revenues, but under the circumstances we are going through, this change is reasonable, I mean within reasonable limits."
Allawi continued, "The Finance Committee did not give us the draft budget, but rather ideas and some proposals and points on which the debate occurs," explaining that "the budget now in front of the House of Representatives, we presented it as a government, as amendments will be made by taking the viewpoint of the position of the Finance Committee as well as the additional positions that we presented as a ministry." Finance".
Allawi indicated that "the budget was presented by the government and is now before the House of Representatives, and the Finance Committee had some amendments, but these amendments must be presented to the representatives as a whole until they are voted on," indicating that "
Dollar exchange,
Allawi pointed out that "the dollar exchange rate is a government decision linked between the Ministry of Finance and the Central Bank," explaining that "this price that we reached after months of study and months of discussions and even controversy with local and international parties, this price is very important and cannot be changed." Daily as desired. "
He continued that "the exchange rate came according to our indicators and studies in discussion with the Central Bank and with the International Monetary Fund and with other Iraqi parties, including the heads of the blocs and the House of Representatives," considering that "this price is reasonable and there is a great response regarding the impact on government revenues and controlling the auction process, as the reserve increased. In the central bank, after we were facing the possibility of a major crisis in terms of cutting, I mean the foreign currency is present at the central bank and we have not changed the marketing process. "
"The markets have accepted the current exchange rate, and over the coming years, it will give incentives to the private sector, stop the import rate, and strengthen the reserve," he added.
He stressed that "there are parties who have benefited from the exchange rate change and others have been affected, and the government is trying to reduce the damage, especially the contractors who contracted with the state in dinars, and there are also contracting contractors in dollars, and they may be priced in dollars and formally presented in dinars, so there must be some kind of balance."
The distribution of salaries
and Allawi said that "the beginning of the current month, the financial flow from the increase in the price of oil will bring us back to the stability of salaries in the timing," stressing that "we are obliged in advance and there are no options and there is no trick in the hand."
Allawi expected that "during the current month of March, the distribution of salaries will be according to the times and the incoming shipments."
Financial Management Law
Allawi added: "I previously talked about the need to amend the Financial Management Law because 1 on 12 is not possible to be a base for managing the country's finances, especially a country like Iraq in crises," noting that "between the 2019 and 2020 budget there was a 50% decrease in revenues from It is not possible to adhere to this way, but there are other ways, which is to give the cabinet the right to manage the state’s financial management in accordance with certain controls. "
The vote on the budget was delayed,
and Allawi said that "there are no technical issues that hinder the vote on the budget, but about the region’s share," stressing that "the ministry requests that it be given a financial budget approved and approved by Parliament to know the final road map for the country."
The minister indicated that "the only thesis that exists now is the government's position, which we estimated with the budget and presented it to the House of Representatives," noting that "the negotiations that take place finance are not a party to it."
Allawi said, "Iraq is committed to repaying foreign debts in a timely manner," explaining that "Iraq is not in much debt, such as some parties, but that the external debt relative to the size of the economy is reasonable."
Allawi stressed that "the foreign debts amount to 60 billion dollars distributed over the years and the way they are arranged," noting that "Iraq's debts are most of the previous ones to governments and international institutions, not to companies or commercial establishments, so their cost is relatively good and the repayment periods are relatively long."
He pointed out that "the external debt is linked to most projects, and there is only debt from the IMF for the purpose of helping and supporting the budget, but this has been paid," explaining that "
He pointed out that "the internal debts are mostly in the hands of government institutions such as banks and a central bank, so it can be rescheduled," noting that "the internal debts amount to 70 trillion dinars and are paid."
Allawi pointed out that "the budget includes all issues related to deletion and creation, and the decision remains in the last for the House of Representatives." Implications. "
He stressed that "Iraq has an obligation according to the licensing contracts, and there are arrears that should have been paid and that were supposed to be paid and some of the arrears returned to be deferred so that the state would be responsible."
, Minister of Finance, Ali Allawi, announced, on Tuesday, the inclusion of lecturers, doctors, and degrees of deletion and introduction in the federal general budget for the fiscal year 2021.
Allawi said, according to the official agency, that "Iraq has gone through a stifling financial crisis, as state revenues in 2020 became the lowest since 2014, indicating that "the white paper began not only with the rationalization of expenditures, but rather focused on the known sources that require reform, fundamental change and leanness of expenditures, and the principle of economic pricing was introduced because the main inputs are subsidized, and these reflect the pricing revenues of oil inputs to distribution companies and refineries companies."
He added, "Iraq has started building al-Qaeda and developing it in the future in order to reduce our dependence on oil revenues," noting that "the ministry is trying to solve decades-old accumulated problems that cannot be neglected without addressing the joints affected by these wrong policies, as this requires a large package of reforms." .
Allawi continued, "We cannot proceed with economic development and put Iraq on a new economic path without addressing the problems," explaining that "the white paper focused on addressing 600 measures that occur in 60 specific packages within 3 to 5 years, and are applied to all major state joints from Ministries to bodies that require persistent and continuous work. "
He pointed out that "it is not possible to fix a certain thing without knowing its impact on other sectors, as it is a complex network and the method of dismantling it on a regular basis needs specific timings."
Obstacles to the implementation of some provisions of the reform paper
Allawi stressed that "there are obstacles to the implementation of reform because every reform will affect and affect certain parties," noting that "despite our conviction as a state and as a people of the necessity of reform and putting Iraq on track, without total reliance on petroleum materials, that requires that we face difficulties and provide solutions that do not." Greatly affect the fragile layers. "
He continued, "These measures will face reactions and perhaps resistance, for example we cannot avoid the necessity of completing all government institutions," noting that "in the 21st century, Iraq cannot remain late, and the philosophy and policy of the private sector cannot be adopted and supported if the obstacles are not removed." Existing in each of the joints, which must be disassembled in a scientific and objective way, which can affect the short stage, but on a medium and long term, as all of them are necessary.
Budget adjustments
Allawi continued that "until now, we do not know the final form of the general budget for 2021, which has not yet been submitted to the vote," noting that "according to our contacts, the terms of the budget did not change much, especially after the agreement that we reached with the Finance Committee in the House of Representatives, as The reforms and changes that the committee requested from it to include a large part of the contracts in the budget that does not exist in it. "
Allawi stressed, "Regarding the deficit, it has decreased to about 30 trillion dinars," explaining that "this is within the capabilities of the government funded locally and abroad without affecting the public debt without affecting the ceilings."
The final price of a barrel of oil in the budget
Allawi said, "With regard to the price of oil, when the government presented the budget, the price of a barrel of oil was $ 42, now it has changed to $ 45, and this price is very reasonable and final," adding that "indications are that the price will be relatively conservative. Real revenues will be more, because they give us." A kind of flexibility to shift resources to points where they were scarce. "
Allawi stated that "the ministry has basic projects that have been developed, especially in support of the poor and support for the treatment of Corona and social welfare, but there are other detailed issues, but in general are the reductions that the House of Representatives introduced to the budget will be presented in an acceptable way," noting that "the main reductions are how to address Delays, the ministry has arrears that must be met. However, the Finance Committee in the House of Representatives decided to postpone and leave for periods of time. Likewise, with regard to internal debts, these items are not considered as a fundamental disagreement, but a procedural one. "
Allawi stressed, "We expect that the House of Representatives will place an income tax on all salaries and all allocations, and we do not have any forms. This is another way, and this will lead to a reduction in the expected revenues, but under the circumstances we are going through, this change is reasonable, I mean within reasonable limits."
Allawi continued, "The Finance Committee did not give us the draft budget, but rather ideas and some proposals and points on which the debate occurs," explaining that "the budget now in front of the House of Representatives, we presented it as a government, as amendments will be made by taking the viewpoint of the position of the Finance Committee as well as the additional positions that we presented as a ministry." Finance".
Allawi indicated that "the budget was presented by the government and is now before the House of Representatives, and the Finance Committee had some amendments, but these amendments must be presented to the representatives as a whole until they are voted on," indicating that "
Dollar exchange,
Allawi pointed out that "the dollar exchange rate is a government decision linked between the Ministry of Finance and the Central Bank," explaining that "this price that we reached after months of study and months of discussions and even controversy with local and international parties, this price is very important and cannot be changed." Daily as desired. "
He continued that "the exchange rate came according to our indicators and studies in discussion with the Central Bank and with the International Monetary Fund and with other Iraqi parties, including the heads of the blocs and the House of Representatives," considering that "this price is reasonable and there is a great response regarding the impact on government revenues and controlling the auction process, as the reserve increased. In the central bank, after we were facing the possibility of a major crisis in terms of cutting, I mean the foreign currency is present at the central bank and we have not changed the marketing process. "
"The markets have accepted the current exchange rate, and over the coming years, it will give incentives to the private sector, stop the import rate, and strengthen the reserve," he added.
He stressed that "there are parties who have benefited from the exchange rate change and others have been affected, and the government is trying to reduce the damage, especially the contractors who contracted with the state in dinars, and there are also contracting contractors in dollars, and they may be priced in dollars and formally presented in dinars, so there must be some kind of balance."
The distribution of salaries
and Allawi said that "the beginning of the current month, the financial flow from the increase in the price of oil will bring us back to the stability of salaries in the timing," stressing that "we are obliged in advance and there are no options and there is no trick in the hand."
Allawi expected that "during the current month of March, the distribution of salaries will be according to the times and the incoming shipments."
Financial Management Law
Allawi added: "I previously talked about the need to amend the Financial Management Law because 1 on 12 is not possible to be a base for managing the country's finances, especially a country like Iraq in crises," noting that "between the 2019 and 2020 budget there was a 50% decrease in revenues from It is not possible to adhere to this way, but there are other ways, which is to give the cabinet the right to manage the state’s financial management in accordance with certain controls. "
The vote on the budget was delayed,
and Allawi said that "there are no technical issues that hinder the vote on the budget, but about the region’s share," stressing that "the ministry requests that it be given a financial budget approved and approved by Parliament to know the final road map for the country."
The minister indicated that "the only thesis that exists now is the government's position, which we estimated with the budget and presented it to the House of Representatives," noting that "the negotiations that take place finance are not a party to it."
Allawi said, "Iraq is committed to repaying foreign debts in a timely manner," explaining that "Iraq is not in much debt, such as some parties, but that the external debt relative to the size of the economy is reasonable."
Allawi stressed that "the foreign debts amount to 60 billion dollars distributed over the years and the way they are arranged," noting that "Iraq's debts are most of the previous ones to governments and international institutions, not to companies or commercial establishments, so their cost is relatively good and the repayment periods are relatively long."
He pointed out that "the external debt is linked to most projects, and there is only debt from the IMF for the purpose of helping and supporting the budget, but this has been paid," explaining that "
He pointed out that "the internal debts are mostly in the hands of government institutions such as banks and a central bank, so it can be rescheduled," noting that "the internal debts amount to 70 trillion dinars and are paid."
Allawi pointed out that "the budget includes all issues related to deletion and creation, and the decision remains in the last for the House of Representatives." Implications. "
He stressed that "Iraq has an obligation according to the licensing contracts, and there are arrears that should have been paid and that were supposed to be paid and some of the arrears returned to be deferred so that the state would be responsible."
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