Economists expect the surplus to reach $20 billion by the end of 2022

POSTED ON[You must be registered and logged in to see this link.] BY [You must be registered and logged in to see this link.]

[size=52]Economists expect the surplus to reach $20 billion by the end of 2022[/size]

[size=45]Baghdad/Bright news[/size]
[size=45]Economists expected that Iraq's cash surplus would reach about $20 billion at the end of this year, pointing out that the central bank's reserve has now reached $90 billion, while noting that the lack of approval of the budget law will prevent Iraq from investment spending.[/size]
[size=45]Iraq currently relies on Federal Financial Management Law No. 6 of 2019 amended to conduct its financial affairs through the monthly allocation of public spending according to the same rates as last year due to the lack of approval of the budget.[/size]
[size=45]The economic expert, Ahmed Saddam, said in an interview with Al-Mada that "the recent rise in oil prices gives rise to optimism and hope for achieving more financial revenues for the public treasury."[/size]
[size=45]Saddam added, "The relative stability will not last long, and what is required in the economic policy in Iraq is to have a sovereign fund, as is the case in other countries."[/size]
[size=45]He pointed out, "This fund is directed to large projects that can create added value and solve many economic problems in Iraq."[/size]
[size=45]Saddam pointed out that "the rise helped achieve a large reserve for the Central Bank of $90 billion," noting that "official expectations indicate the possibility of achieving a surplus at the end of this year of up to $20 billion."[/size]
[size=45]He stressed, "The expected surplus, with the presence of political and economic stability, can be directed towards projects that contribute to improving the economic reality and reduce the severity of the shocks to which the Iraqi economy is exposed due to the heavy dependence on oil."[/size]
[size=45]Saddam stressed, "Prices will drop in the future, and these are well-known economic cycles, and therefore what is required is the existence of policies towards diversifying the economy, and they need pillars and legislation that stimulate foreign direct investment."[/size]
[size=45]And he continues, that "economic development in Iraq can be based on the oil sector itself, but through industries related to this sector."[/size]
[size=45]Saddam noted that "the establishment of petrochemical industries can stimulate other industries such as refining," noting that "such projects can create a lot of income, generate a lot of job opportunities and preserve economic activities."[/size]
[size=45]He believed, "Such industries stimulate the level of economic growth dependent on oil, but this in itself is a great value. Instead of exporting all crude oil, there will be a large share of oil production that will be transformed into refined products and turned into petrochemical industries."[/size]
[size=45]Saddam went on to say that "the existence of such industries can stimulate other industries, such as plastics, and this is an important issue that many international experiences have persisted in so that it stems from the competitive advantage that characterizes the economy."[/size]
[size=45]For his part, the other economic expert, Safwan Qusay, stated that "the lack of political agreement significantly affected the economic situation, and this was evident through the failure to pass the budget law for the current year."[/size]
[size=45]Qusay added, "The delay contributed to the complexity of the current government's business when it moved to the caretaker, as it could neither make transfers nor spend higher than the actual spending for 2021."[/size]
[size=45]He pointed out that "current spending last year was 90 trillion dinars, which means that spending will continue at the same level."[/size]
[size=45]Qusay stated, "Investment spending will be disrupted, although it is in line with the Iraqi economy, which suffers from desertification in the decrease of job opportunities and the migration of farmers as a result of the lack of water."[/size]
[size=45]He finds, "Iraq had to approve a budget that responds to these variables," noting that "the law of emergency support for food security approved by the House of Representatives earlier contributed to supporting the Iraqi economy by launching 17 billion dollars at the level of achieving food security and settling energy dues with The Iranian side has allocated 8 trillion to the provinces to break the partial bottlenecks.”[/size]
[size=45]Qusay stressed, “The country will enter 2023 in the shadow of this political conflict without an investment budget, and there is a problem that if projects are left without funding, the implementers will withdraw and consequently we will suffer losses as a result of this withdrawal.”[/size]
[size=45]And he added, “Parliament has to think of a legal tool that accompanies the process of dissolving it if a solution is resorted to, so that the current government or others can continue with investment spending.”[/size]
[size=45]Qusay went on to say that "there is one window to settle this issue through self-financing funds that have the possibility, through their boards of directors, to finance these projects, or have partners in implementation through the stock market."[/size]
[size=45]Qusay went on to say that “leaving the issue without thinking about the future, the level of danger will rise, and we do not know whether the next government after the elections can implement the program to address these errors.”[/size]
[size=45]It is noteworthy that Iraq failed to approve the current year’s budget due to the many political differences, and had previously failed to approve the 2014 and 2020 budgets.[/size]
[size=45][You must be registered and logged in to see this link.]