[You must be registered and logged in to see this image.] 01/24/2022
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, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained, on Monday, January 24, 2022, the impact of the delay in approving the budget on the Iraqi economy, indicating that the budget constitutes 50 percent of Iraq's gross domestic product.
Saleh said, "The financial system in Iraq is hedged by the financial management law in the event of any political emergency, delay or specific circumstance. The delay in approving the budget. The Financial Management Law replaces the budget law in managing the country's financial affairs, which means regulating expenditures and revenues."
He added, "The budget is an annual plan for a period of one year, and when there is no annual plan, the actual current expenditures for the past year are used, it repeats the old and adds 1 to 12 of the actual current expenditures of salaries, wages and continuous payment obligations, and it is called the minimum public financial matters."
He continued, "This matter does not have planning and vision because there is no budget because the budget is planning, vision and goals, and therefore there will be a repetition of last year's goals over the current year and you seek the issuance of the budget until your goals are achieved."
Saleh pointed out that "whenever the financial budget is disrupted and months pass, it means that the goals of the financial budget are not achieved and the goals of the previous fiscal year are repeated, and thus new projects do not exist, new appointments do not exist and a commitment to develop government activity and government programs are disrupted, the market does not know its vision in any way. A trend that will be because the budget is the essence of economic policy. Which direction will it go this year, will it be toward expansion or contraction or toward investments and projects?
Saleh stressed that "the market will remain in this case anxiety and a state of uncertainty for investor decisions and economic activity in the market," noting that "the budget constitutes 50 percent of Iraq's gross domestic product and its effects on the economy are 85 percent."
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