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Baghdad - IQ
On Tuesday (May 18, 2021), Mazhar Muhammad Salih, the financial advisor to the Prime Minister, Mustafa Al-Kazemi, expressed his concern about the stalled 2022 budget due to its coincidence with early elections, indicating that the conditions that the elections will pass and the formation of a new government are against next year's budget.
Saleh said in a statement to the Iraqi News Agency, followed by IQ News , that "the economic situation in general is reassuring, and there is no fear for it under the current circumstances," pointing out that "the most prominent economic challenges are the coincidence of the election date 10/10 with the date of submitting the draft budget. For the year 2022, between the cabinet, in which the approval of laws is delayed, and the government becomes a business administration, and the parliament, which is about to be constitutionally expired.
He pointed out that "this matter is worrying, and we do not know how the elections will end and how the next government and the House of Representatives will be formed," explaining that "all these matters are against the approval or delay of the budget."
He added that "the budget was hedged with internal borrowing for fear of facing any liquidity shortage." If the default price in the budget is $ 45 and the real price is $ 60, there will be a difference to cover the requirements on the basis of financing the deficit by borrowing.
And he indicated that "there are pessimistic theories that assume that there are other payments and that non-oil revenues are still low, and they are taken into consideration that oil revenues are recorded in one form, and the truth is another form." The remaining 17% of the revenues are non-oil, but in practice this has not materialized, so there is a gap that is covered by borrowing.
He emphasized that "the Iraqi government's cash presence is at its best at the present time," noting that "the average price of a barrel of oil today is about $ 60, and the obligations payable have been performed on a regular basis, and the cash liquidity is high."
Saleh stressed that "there is no fear of regular payment of salaries to employees and retirees and social care in light of the regular and high financial flow and budgetary hedging," indicating that "the situation will be comfortable until the end of the year 2022."