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[size=35][size=35]The full story of the three-year budget: a "qualitative" constitutional step after a long wait and "massive" numbers.[/size]
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2023-03-14 | 04:06
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Alsumaria News - A report
The last budget approved in Iraq dates back to late March 2021, while one was not approved in 2022 due to the political turmoil that paralyzed the country for a year after the last legislative elections.
In order to secure basic expenses, the Iraqi parliament voted in the summer of 2022 on the emergency support law, amounting to $17 billion, and allowing Iraq, in particular, to purchase gas, electricity, and grains to ensure "food security."
* Approval
Yesterday, Monday, March 13, 2023, the Council of Ministers approved the draft general budget law, while it was referred to the House of Representatives.
The media office of the Prime Minister stated, in a statement received by Alsumaria News, that "the cabinet approved the draft federal budget law for the fiscal years 2023, 2024, and 2025, in its regular session, chaired by Prime Minister Muhammad Shia' al-Sudani.” He added, "The Council of Ministers decided to refer the general budget to the House of Representatives."
And the day before yesterday, Sunday, the Minister of Finance, Taif Sami, announced the completion of the draft federal budget law for the year 2023 and sent it to the Council of Ministers for the purpose of discussing and voting on it.
* Details of the budget law
After its approval, Prime Minister Muhammad Shia' al-Sudani went out, in a press conference attended by the Alsumaria correspondent, to reveal its details and main clauses.
Al-Sudanese said at the conference, "The priorities of the government program will be present in the 2023 budget," pointing out that "the budget for three years supports financial stability, and we are facing the stability of that." He pointed out that "entitlements for all contracts, lecturers, and higher certificates have been secured in the budget," adding: "We have put in the budget practical measures, including increasing the coverage area in the protection network, and with the approval of the budget, the social subsidy will be disbursed."
He continued, "For the first time, a fund has been established for the poorest governorates, and this fund will address the state of poverty in these governorates," noting that "in this budget, we have maintained support for the liberated governorates, and we have allocated an amount of 500 billion dinars to secure service projects and support for displaced families.” He pointed out that "a fund has been established to support the Sinjar district and the Nineveh Plain, and we have allocated 50 billion dinars."
Reasons for delaying the budget
As Al-Sudani revealed, “One of the reasons for delaying the approval of the budget was also the understanding with the Kurdistan region, where a comprehensive agreement was reached on the outstanding issues between Baghdad and Erbil,” noting that “for the first time , the total revenues of oil produced in the region are deposited in a bank account in which they are deposited.” It is subject to federal administration.
* Understandings between Baghdad and Erbil
He explained that "the understandings between Baghdad and Erbil were on clear points and confirm the two parties' progress towards approving the oil and gas law," stressing that "if there are any differences between Baghdad and Erbil, there is a committee that submits its recommendations to the federal prime minister.”
* Budget numbers,
and he added that "the share of the Kurdistan region in the budget amounts to 12.6, and the total amount budgeted to 197 trillion and 828 billion dinars, as follows: the operational budget amounts to more than 150 trillion dinars, the The investment budget is more than 47 trillion, and the budget deficit amounts to 63 trillion dinars.
"Total revenues amount to more than 134 trillion dinars," stressing that "oil revenues amount to more than 117 trillion dinars based on the price of oil at $70, and non-oil revenues amount to more than 17 trillion dinars."
* The total budget is more than 197 trillion dinars
* The operating budget is more than 150 trillion dinars
* The budget investment is more than 47 trillion
* The budget deficit is 63 trillion dinars
* Total revenues are more than 134 trillion dinars
* Oil revenues are More than 117 trillion dinars based on the price of oil at 70 dollars
* Non-oil revenues amount to more than 17 trillion dinars
* The share of the Kurdistan region in the budget is 12.6 percent
* More than 12 trillion dinars of indebtedness will be paid This year
* Petrodollars will be two trillion dinars distributed among the provinces
* Development of the regions In the budget, it will be 2.5 trillion dinars
* 400 billion dinars have been added to loans for small projects in the Ministry of Labor
* Increase the capital of the Industrial Bank by 400 billion dinars to support the private sector
* An increase in some allocations, including medicines, by an amount of 300 billion dinars, to become more than a trillion
* Allocating one trillion dinars for the Iraq Development Fund draft law
* Reasons for the increase in the budget
To that, the Prime Minister saw that “the increase in the budget It came due to the installation of lecturers and contracts in all ministries as well as indebtedness,” indicating that “this year more than 12 trillion dinars of indebtedness will be paid, and this indebtedness is internal and external and payable,” noting that “there is an increase in some allocations, including medicines, by 300 billion dinars to become more than a trillion.”
He added, "The petrodollar will be two trillion dinars distributed among the provinces," explaining that "the development of the region in the budget will be two and a half trillion dinars." This draft law of the Iraq Fund for Development is directed to the private sector,” pointing out that “in the project of the Iraq Fund for Development, the implementation of 8 thousand schools will be launched at once.” He continued, “The
The government program has adopted coverage of special programs at an amount of one trillion and 865 billion dinars for medical services," stressing "the expenses of those whose contracts were terminated have been covered, and these allocations will be in the budget law," he added. , adding that "the amounts of electricity imports have been reduced," stressing that "the dues of farmers for the current agricultural season are secured."
And he stressed that "400 billion dinars have been added to the loans of small projects in the Ministry of Labor, in addition to increasing the capital of the Industrial Bank by 400 billion dinars to support the private sector.
The
budget that enjoys a political agreement.
* Where does the financial abundance go
? He pointed out that “the financial abundance from oil prices will be used to pay the dues of the governorates and cover the deficit,” noting that “the government cannot cover all the country's requirements without the private sector, and this sector will receive real support.” .” In addition, the political advisor to Prime Minister Fadi Al-Shammari explained the most important items and features of the three-year budgets
.
Al-Shammari said in a statement received by Alsumaria News, "The most important items of the three-year budgets are as follows: -
For the first time, the budget comes in line with the provisions of the government program and the government's ministerial curriculum -
The budget has addressed chronic problems (the social welfare network, student grants for poor families.
- The budget will be A model for financial budgets (2025, 2024, 2023), and it is a bold step to implement the government's vision in implementing strategic and development projects.-
Establishing the Iraq Development Fund, which will deal with accumulated crises such as housing projects and schools.
- Establishing a fund to support the poorest governorates by implementing development projects in them.
- The budget witnessed a great understanding with the Kurdistan region and involved solving many problems.
Reducing the rates of energy import amounts by one third as a result of entering new stations into service.
Support for peasants and farmers.
Increasing capital for the industrial and housing banks.
- Developing the health sector and the pharmaceutical industry, as well as rehabilitating 10 hospitals that were built before 2003.
The budget included the implementation of the provisions of the reform package for the retirees segment.
For its part, the Ministry of Finance issued a statement related to the bases for preparing the federal budget for the year 2023, which includes budget challenges, response determinants, and government program priorities.
Below is the text of the statement:
[url=file:///C:/Users/news9/Downloads/%D8%A7%D9%84%D8%A8%D9%8A%D8%A7%D9%86 %D8%AA%D8%B9%D8%AF%D9%8A%D9%84 %D8%A7%D9%81%D8%A7%D9%82 (2).pdf?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=e]Press here[/url]
[url=file:///C:/Users/news9/Downloads/%D8%A7%D9%84%D8%A8%D9%8A%D8%A7%D9%86 %D8%AA%D8%B9%D8%AF%D9%8A%D9%84 %d8%a7%d9%81%d8%a7%d9%82.pdf?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=e]
[/url]
* The constitutionality of merging budgets for the next three years.
Today, Tuesday, March 14, 2023, legal expert Ali Al-Tamimi confirmed the constitutionality of merging budgets for the next three years, while pointing out the possibility of amending the two subsequent budgets by the House of Representatives.
Al-Tamimi said in an interview with Al-Sumaria News, “The merger of budgets for the next three years is constitutionally and legally possible, as indicated by Article 78 of the Constitution and Article 4, Paragraph 2, of the Financial Management and Public Debt Law No. 6 of 2019, which authorized the merger, which is medium-term for the next three years, and the first year is obligatory.” app as is.
He added, “The two subsequent budgets are subject to amendment by the House of Representatives and according to circumstances, which is appropriate to the philosophy of budget legislation, which is a future financial plan that prevents delays in legislation and can estimate the value of oil And the price of the dollar, and determines appointments and jobs with complete stability that guarantees their application and prevents changes.”
* Exporting 3.5 million barrels annually.
Iraq intends to export 3.5 million barrels annually during the current year, according to what was approved by the Sudanese government in its budget for the current year.
Iraq is the second largest oil producer in OPEC, and the country relies on revenues from selling crude to cover about 95% of its expenses.
The price of a barrel of oil is about $70 per barrel in the budget approved by the government on Monday, with a total proposed expenditure of 197.8 trillion dinars ($152.2 billion), according to Prime Minister Mohammed al-Sudani, who indicated that this budget will be repeated over the next two years as well.
The fiscal deficit amounts to 63 trillion dinars ($48.5 billion), according to the official government statement.
While Iraq is an oil exporter, it imports the main oil derivatives, such as gasoline, gas oil and white oil.According to the “SOMO” company, more than 5 million tons of oil derivatives were imported last year, at a value of $5.3 billion, compared to 4.7 million tons, at a value of $3.3 billion, in 2021. Gasoline was the most imported, at a value of $3.8 billion, followed by gas oil with more than $1.2 billion.
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2023-03-14 | 04:06
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Alsumaria News - A report
After a two-year wait for the last budget approved in Iraq, the Council of Ministers, headed by Muhammad Shia' al-Sudani, approved yesterday, Monday, March 13, 2023, the draft general budget law for the Next three years, in a step that is the first of its kind in Mesopotamia. Many official government agencies have their details, main clauses revealed, bases for their preparation and features.
The last budget approved in Iraq dates back to late March 2021, while one was not approved in 2022 due to the political turmoil that paralyzed the country for a year after the last legislative elections.
In order to secure basic expenses, the Iraqi parliament voted in the summer of 2022 on the emergency support law, amounting to $17 billion, and allowing Iraq, in particular, to purchase gas, electricity, and grains to ensure "food security."
* Approval
Yesterday, Monday, March 13, 2023, the Council of Ministers approved the draft general budget law, while it was referred to the House of Representatives.
The media office of the Prime Minister stated, in a statement received by Alsumaria News, that "the cabinet approved the draft federal budget law for the fiscal years 2023, 2024, and 2025, in its regular session, chaired by Prime Minister Muhammad Shia' al-Sudani.” He added, "The Council of Ministers decided to refer the general budget to the House of Representatives."
And the day before yesterday, Sunday, the Minister of Finance, Taif Sami, announced the completion of the draft federal budget law for the year 2023 and sent it to the Council of Ministers for the purpose of discussing and voting on it.
* Details of the budget law
After its approval, Prime Minister Muhammad Shia' al-Sudani went out, in a press conference attended by the Alsumaria correspondent, to reveal its details and main clauses.
Al-Sudanese said at the conference, "The priorities of the government program will be present in the 2023 budget," pointing out that "the budget for three years supports financial stability, and we are facing the stability of that." He pointed out that "entitlements for all contracts, lecturers, and higher certificates have been secured in the budget," adding: "We have put in the budget practical measures, including increasing the coverage area in the protection network, and with the approval of the budget, the social subsidy will be disbursed."
He continued, "For the first time, a fund has been established for the poorest governorates, and this fund will address the state of poverty in these governorates," noting that "in this budget, we have maintained support for the liberated governorates, and we have allocated an amount of 500 billion dinars to secure service projects and support for displaced families.” He pointed out that "a fund has been established to support the Sinjar district and the Nineveh Plain, and we have allocated 50 billion dinars."
Reasons for delaying the budget
As Al-Sudani revealed, “One of the reasons for delaying the approval of the budget was also the understanding with the Kurdistan region, where a comprehensive agreement was reached on the outstanding issues between Baghdad and Erbil,” noting that “for the first time , the total revenues of oil produced in the region are deposited in a bank account in which they are deposited.” It is subject to federal administration.
* Understandings between Baghdad and Erbil
He explained that "the understandings between Baghdad and Erbil were on clear points and confirm the two parties' progress towards approving the oil and gas law," stressing that "if there are any differences between Baghdad and Erbil, there is a committee that submits its recommendations to the federal prime minister.”
* Budget numbers,
and he added that "the share of the Kurdistan region in the budget amounts to 12.6, and the total amount budgeted to 197 trillion and 828 billion dinars, as follows: the operational budget amounts to more than 150 trillion dinars, the The investment budget is more than 47 trillion, and the budget deficit amounts to 63 trillion dinars.
"Total revenues amount to more than 134 trillion dinars," stressing that "oil revenues amount to more than 117 trillion dinars based on the price of oil at $70, and non-oil revenues amount to more than 17 trillion dinars."
* The total budget is more than 197 trillion dinars
* The operating budget is more than 150 trillion dinars
* The budget investment is more than 47 trillion
* The budget deficit is 63 trillion dinars
* Total revenues are more than 134 trillion dinars
* Oil revenues are More than 117 trillion dinars based on the price of oil at 70 dollars
* Non-oil revenues amount to more than 17 trillion dinars
* The share of the Kurdistan region in the budget is 12.6 percent
* More than 12 trillion dinars of indebtedness will be paid This year
* Petrodollars will be two trillion dinars distributed among the provinces
* Development of the regions In the budget, it will be 2.5 trillion dinars
* 400 billion dinars have been added to loans for small projects in the Ministry of Labor
* Increase the capital of the Industrial Bank by 400 billion dinars to support the private sector
* An increase in some allocations, including medicines, by an amount of 300 billion dinars, to become more than a trillion
* Allocating one trillion dinars for the Iraq Development Fund draft law
* Reasons for the increase in the budget
To that, the Prime Minister saw that “the increase in the budget It came due to the installation of lecturers and contracts in all ministries as well as indebtedness,” indicating that “this year more than 12 trillion dinars of indebtedness will be paid, and this indebtedness is internal and external and payable,” noting that “there is an increase in some allocations, including medicines, by 300 billion dinars to become more than a trillion.”
He added, "The petrodollar will be two trillion dinars distributed among the provinces," explaining that "the development of the region in the budget will be two and a half trillion dinars." This draft law of the Iraq Fund for Development is directed to the private sector,” pointing out that “in the project of the Iraq Fund for Development, the implementation of 8 thousand schools will be launched at once.” He continued, “The
The government program has adopted coverage of special programs at an amount of one trillion and 865 billion dinars for medical services," stressing "the expenses of those whose contracts were terminated have been covered, and these allocations will be in the budget law," he added. , adding that "the amounts of electricity imports have been reduced," stressing that "the dues of farmers for the current agricultural season are secured."
And he stressed that "400 billion dinars have been added to the loans of small projects in the Ministry of Labor, in addition to increasing the capital of the Industrial Bank by 400 billion dinars to support the private sector.
The
budget that enjoys a political agreement.
* Where does the financial abundance go
? He pointed out that “the financial abundance from oil prices will be used to pay the dues of the governorates and cover the deficit,” noting that “the government cannot cover all the country's requirements without the private sector, and this sector will receive real support.” .” In addition, the political advisor to Prime Minister Fadi Al-Shammari explained the most important items and features of the three-year budgets
.
Al-Shammari said in a statement received by Alsumaria News, "The most important items of the three-year budgets are as follows: -
For the first time, the budget comes in line with the provisions of the government program and the government's ministerial curriculum -
The budget has addressed chronic problems (the social welfare network, student grants for poor families.
- The budget will be A model for financial budgets (2025, 2024, 2023), and it is a bold step to implement the government's vision in implementing strategic and development projects.-
Establishing the Iraq Development Fund, which will deal with accumulated crises such as housing projects and schools.
- Establishing a fund to support the poorest governorates by implementing development projects in them.
- The budget witnessed a great understanding with the Kurdistan region and involved solving many problems.
Reducing the rates of energy import amounts by one third as a result of entering new stations into service.
Support for peasants and farmers.
Increasing capital for the industrial and housing banks.
- Developing the health sector and the pharmaceutical industry, as well as rehabilitating 10 hospitals that were built before 2003.
The budget included the implementation of the provisions of the reform package for the retirees segment.
For its part, the Ministry of Finance issued a statement related to the bases for preparing the federal budget for the year 2023, which includes budget challenges, response determinants, and government program priorities.
Below is the text of the statement:
[url=file:///C:/Users/news9/Downloads/%D8%A7%D9%84%D8%A8%D9%8A%D8%A7%D9%86 %D8%AA%D8%B9%D8%AF%D9%8A%D9%84 %D8%A7%D9%81%D8%A7%D9%82 (2).pdf?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=e]Press here[/url]
[url=file:///C:/Users/news9/Downloads/%D8%A7%D9%84%D8%A8%D9%8A%D8%A7%D9%86 %D8%AA%D8%B9%D8%AF%D9%8A%D9%84 %d8%a7%d9%81%d8%a7%d9%82.pdf?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=e]
[/url]
* The constitutionality of merging budgets for the next three years.
Today, Tuesday, March 14, 2023, legal expert Ali Al-Tamimi confirmed the constitutionality of merging budgets for the next three years, while pointing out the possibility of amending the two subsequent budgets by the House of Representatives.
Al-Tamimi said in an interview with Al-Sumaria News, “The merger of budgets for the next three years is constitutionally and legally possible, as indicated by Article 78 of the Constitution and Article 4, Paragraph 2, of the Financial Management and Public Debt Law No. 6 of 2019, which authorized the merger, which is medium-term for the next three years, and the first year is obligatory.” app as is.
He added, “The two subsequent budgets are subject to amendment by the House of Representatives and according to circumstances, which is appropriate to the philosophy of budget legislation, which is a future financial plan that prevents delays in legislation and can estimate the value of oil And the price of the dollar, and determines appointments and jobs with complete stability that guarantees their application and prevents changes.”
* Exporting 3.5 million barrels annually.
Iraq intends to export 3.5 million barrels annually during the current year, according to what was approved by the Sudanese government in its budget for the current year.
Iraq is the second largest oil producer in OPEC, and the country relies on revenues from selling crude to cover about 95% of its expenses.
The price of a barrel of oil is about $70 per barrel in the budget approved by the government on Monday, with a total proposed expenditure of 197.8 trillion dinars ($152.2 billion), according to Prime Minister Mohammed al-Sudani, who indicated that this budget will be repeated over the next two years as well.
The fiscal deficit amounts to 63 trillion dinars ($48.5 billion), according to the official government statement.
While Iraq is an oil exporter, it imports the main oil derivatives, such as gasoline, gas oil and white oil.According to the “SOMO” company, more than 5 million tons of oil derivatives were imported last year, at a value of $5.3 billion, compared to 4.7 million tons, at a value of $3.3 billion, in 2021. Gasoline was the most imported, at a value of $3.8 billion, followed by gas oil with more than $1.2 billion.
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