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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Parliamentary Finance: The oil price difference will save the treasury 29 trillion dinars

rocky
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parliamentary - Parliamentary Finance: The oil price difference will save the treasury 29 trillion dinars Empty Parliamentary Finance: The oil price difference will save the treasury 29 trillion dinars

Post by rocky Wed 07 Jul 2021, 7:02 am

[size=52]Parliamentary Finance: The oil price difference will save the treasury 29 trillion dinars[/size]

[size=45]Baghdad/ Firas Adnan[/size]
[size=45]The Finance Committee in the House of Representatives expected, yesterday, Tuesday, that the oil price difference established in the budget at the end of this year will provide about 29 trillion dinars, indicating that the amount through which the deficit will be covered in full, while I talked about the possibility of achieving an abundance of it that goes to the payment of previous debts, and I spoke There are indications that the price of a barrel will reach in December between 80 to 100 dollars.[/size]
[size=45]The committee's rapporteur, Representative Ahmed Al-Saffar, said, in a statement to Al-Mada, that "all the numbers and data contained in the state budget law are in fact estimates because they have been developed for a future period."[/size]
[size=45]Al-Saffar added, "These numbers may correspond to reality and may differ with it, and in most cases the difference occurs."[/size]
[size=45]He pointed out, "The budget was set in light of the presence of two financial and health crises, accompanied by a drop in oil prices on which Iraq depends by about 93 percent to feed its revenues."[/size]
[size=45]Al-Saffar explained, "Determining the price of oil is the main influencing factor in the volume of revenues, and it also determines the deficit in the law."[/size]
[size=45]He noted, "The budget was built on the price of a barrel of $45, at a time when the current price was $50, a difference of five dollars."[/size]
[size=45]Al-Saffar continues, "What was approved in the budget, I was at odds with him, because I followed the oil agencies and had a perception that the price of a barrel might reach $100 in December, or between $80 and $90 at the very least."[/size]
[size=45]He believes, "Adopting a price of $45 was completely contrary to reality and is more conservative than economic reality requires, and it would have been better to put it at about $50."[/size]
[size=45]The decision of the Finance Committee stated that "the difference for the current month is about $30, and this figure is able to cover the deficit completely."[/size]
[size=45]He stressed, "The financial deficit in Iraq is illusory and unreal, and as soon as the year ends, this deficit will disappear through the difference in the price of a barrel of oil between what is put in the budget and what is in the markets."[/size]
[size=45]Al-Saffar pointed out that "some years have witnessed a surplus and the reason is the price difference, and Iraq is used to not implementing its budget by 100%, and in the best cases, implementation did not exceed 80%."[/size]
[size=45]He stressed, "The average price difference for the whole of the current year, if we take into account the past months, is estimated at about 22 dollars per barrel."[/size]
[size=45]Al-Saffar continues, "This provides 24 billion dollars, and this amount, according to the current exchange rate, is 29 trillion dinars, while the amount of the deficit is 28 trillion dinars."[/size]
[size=45]And he stated, that “there is any financial abundance from the sale of oil, the financial management law stipulates either to revolve over the following year in the absence of an intention to present a supplementary budget, or to give the government powers to use this abundance to finance lagging and stalled projects.”[/size]
[size=45]Al-Saffar continued, "The existing data do not show the possibility of submitting a supplementary budget, because the original budget has not been implemented so far, despite our arrival in the seventh month, and therefore the amounts resulting from the oil price difference will revolve until next year."[/size]
[size=45]Al-Saffar concluded, “The lack of complete implementation of the budget is due to several reasons, the most important of which is its late submission to the House of Representatives, as well as the circumstances that accompanied its legislation leading to its approval at the end of last March, and that it also needs to be approved, and that the issuance of implementation instructions from the Ministry of Finance requests A whole month.”[/size]
[size=45]The House of Representatives voted on the budget on March 31, after a round of discussions, where the Finance Committee described its project as not being a draft law, but rather a financial paper only.[/size]
[size=45]For his part, a member of the committee, Representative Mahmoud Al-Shabki, said in a statement to Al-Mada that "the House of Representatives did well when it did not put paragraphs in the budget authorizing the government to obtain new loans."[/size]
[size=45]Al-Shabki continued, "The price difference will provide us with good amounts, which will help fill the planned budget deficit completely, and the good increase in the price of a barrel of oil has helped us, and we hope that the rise will continue over time."[/size]
[size=45]He stressed, "The increase that will be achieved at the end of the year will be distributed either to cover the deficit in the budget, or it will go to repay previous loans, and therefore we will witness an improvement in the economic situation by about a year."[/size]
[size=45]Al-Shabki hopes that “the government will prepare a budget for the coming year that is commensurate with the current economic situation and according to the developments, and it is not without the problems that we have experienced in our legislation of the current law.”[/size]
[size=45]A government adviser revealed that Iraq's internal and external debts amounted to $113 billion, including $40 billion outstanding debts since the eighties and nineties of the last century, in addition to the accumulation of debts due to the war against the terrorist organization ISIS, and development projects provided by some global funds, and a total of $23 billion payable.[/size]
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