Representatives: The abundance of oil has no economic impact.. It will go to the Central Bank and pr

[size=52]Representatives: The abundance of oil has no economic impact.. It will go to the Central Bank and previous debts[/size]

[size=45]Baghdad / Hussein Hatem[/size]
[size=45]After being preoccupied with preparing the budget for the year 2022 and preparing for the elections to be held on the tenth of next October, and the short time remaining for the life of Parliament, there was talk about excluding the establishment of a supplementary budget.[/size]
[size=45]Among the deputies, the financial abundance resulting from the rise in oil prices will go towards the reserves of the Central Bank and the payment of accumulated debts, in addition to filling the budget deficit.[/size]
[size=45]Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, said, at the end of last August, “I do not see that the fiscal year, which will enter its last quarter, encourages the production of a supplementary budget, not to mention that parliamentary life is about to stop due to the legislative elections on the tenth of October.” First, how can such exceptional budgets be legislated so quickly?[/size]
[size=45]He added that "the government's appeal to some paragraphs of the Federal General Budget Law for the fiscal year 2021 is still before the Federal Court until this moment."[/size]
[size=45]A member of the Parliamentary Finance Committee, Jamal Cougar, said in an interview with (Al-Mada), “Part of the financial abundance will go to the Central Bank’s reserves, and another part will go to repaying the accumulated debts, and the third part can be presented as a supplementary budget, but this will not happen because Parliament is in the process of Presentation of the 2022 budget.[/size]
[size=45]Cougar adds, "The financial abundance did not include the establishment of projects," noting that "if the projects are not included in the budget, the financial system cannot work on them."[/size]
[size=45]A member of the Parliamentary Finance Committee points out, "All amounts are disbursed in light of what is specified in the current year's budget."[/size]
[size=45]Cougar points out, "In the event of a large abundance, it is possible to deposit the entire amounts of the projects included in the 2021 budget."[/size]
[size=45]In the proposed 2021 budget bill, which the government submitted to Parliament, the value of the deficit was estimated at 49 billion dollars. However, the deputies made up the difference by canceling debts and dues from the state in exchange for energy sources from the account, especially dues for Iranian gas and energy, and other payments for infrastructure.[/size]
[size=45]The value of the deficit in the 2021 budget, as approved by Parliament, amounted to 19.8 billion dollars, compared to 23.1 billion dollars in 2019, knowing that Iraq did not approve the 2020 budget due to political tension.[/size]
[size=45]The total value of revenues in the 2021 budget amounted to about 69.9 billion dollars, calculated based on the export of crude oil on the basis of a price of 45 dollars per barrel, and an export rate of three million and 250 thousand barrels per day. As for the value of the 2021 budget, it amounted to $89.7 billion, about 30% lower than the last budget approved in 2019.[/size]
[size=45]In turn, a member of the Parliamentary Committee on Economy and Investment, Nada Shaker Jawdat, said in an interview with Al-Mada that "the financial abundance resulting from the rise in oil prices did not serve the Iraqi economy in terms of Iraqi projects and industries."[/size]
[size=45]Jawdat adds, "The Ministry of Industry and investment agencies are almost non-existent in Iraq."[/size]
[size=45]In the opinion of a member of the Parliamentary Economy Committee, "mismanagement and failure to impose the prestige of the state leads us from one collapse to another."[/size]
[size=45]It also finds that “the parties are in control and dominate the economic scene, and therefore the citizen is the victim.”[/size]
[size=45]Jawdat revealed that "successive governments since 2003 until today have been unable to establish economic investment projects within a budget."[/size]
[size=45]In addition, a member of the Legal Committee Hussein Al-Aqabi says, "There is a financial abundance that has been achieved due to the high oil prices, as the price fixed in the budget law is $45, while the price of a barrel has reached more than seventy dollars, a difference of $30 from the approved price."[/size]
[size=45]He explained that "the amounts achieved can bridge the deficit in the budget, as well as address the effects that resulted from the rise in the exchange rate," ruling out "presenting a supplementary budget."[/size]
[size=45]At the same time, Al-Uqabi stressed “the need to invest the financial abundance by securing new sums to include new families in social care,” noting that “no sums of money were allocated during the current year to include new families.”[/size]
[size=45]For his part, the oil affairs specialist, Ali Nehme, said in an interview with (Al-Mada), that “the average price of a barrel of Iraqi oil for the month of August was 69.017 US dollars,” noting that “the average exported quantity in August was 3.045.000 million. barrels a day.”[/size]
[size=45]Nima adds that “the total revenue generated is more than 6.5 billion dollars,” noting that “the amount allocated for export, according to the budget, is 3.250.000 barrels per day, of which 250,000 are from the Kurdistan region.”[/size]
[size=45]It shows that “the surplus in the event of calculating the entire amount planned in the budget is about 2 billion.”[/size]
[size=45]Nehme believes that “in the event that Kurdistan’s amount of 250,000 barrels per day is not calculated, it will be more than $2.348 billion.”[/size]
[size=45]He concluded by saying, "It is expected that oil prices will remain around $70 during the remainder of 2021."[/size]
[size=45]Earlier, Finance Minister Ali Abdul-Amir Allawi said in a press conference attended by a delegate (Al-Mada) that the price of a barrel in the new budget will be 50 dollars, which is an adjustable figure. However, the value of a barrel of oil in the market is currently much higher and exceeds sixty dollars.[/size]
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