Experts: Investment allocations in the budget will move the labor market
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Hussein Thaghb Al-Tamimi
Finance and economics experts stressed the importance of investment allocations in the federal budget for the year 2023 in stimulating the labor market, as it will establish an additional production base that mobilizes idle productive capacities, specifically work at accelerated growth rates, and that moving seriously towards the transition from consumer spending to investment spending is important because of its impact on the life of Iraqi society and achieve their aspirations.
Financial advisor to the Prime Minister, Dr. The appearance of Muhammad Salih emphasized that “the investment spending directed with high efficiency and carefully studied in terms of economic and technical feasibility tends to move the work cycle on a large scale, due to the wide interdependence between the investment expenditures themselves and the demand derived on the inputs of the production process subject to investment, specifically the labor component, as well as supplies.” Other material production related to the components of the production function, which is targeted by the investment expenditure itself.
He said, "There is a measure of the accelerated effects of investment spending on growth degrees in the gross domestic product, because investment spending establishes an added production base and drives idle productive capacities, specifically work, with accelerated growth rates or the so-called investment spending accelerator," noting that "the growth of exchange is at the rate of one dinar per Efficient investment activity will generate income at higher or higher growth rates. This is within the framework of the development of demand chains for the labor component as one of the most important factors of production and its effects on the growth of the employment cycle itself, that is, through the wider use of human productive resources that drive the labor market.
He pointed out that "investment in the tourism sector, for example, generates a demand for work at a rate of 25 opportunities immediately from the various relevant human skills. Likewise, investment in the construction and building sectors has the ability to generate a demand for work with about 200 opportunities from various human skills, and so on for the rest of the sectors that Investing in them affects the demand factors in the national labor market.
Industrial development and investment consultant, Amer Al-Jawahiri, said: “Talking about the extent of the impact of investment allocations in moving the national labor market, we must always be clear about it, since the goal is to achieve prosperity, economic diversification, and the optimal exploitation of all natural and non-natural resources, including human capabilities, and improving the domestic product.” Increasing the country's revenues and reducing expenditures, all of this requires the development and improvement of infrastructure and services, and these are the projects.
He added, "When we go to implement projects that flow in this direction and contribute over time and the timing of their implementation in achieving qualitative shifts, which means optimal utilization of resources, all government institutions must be productive, that is, they have projects to improve energies, all of this is related to providing a working environment and real empowerment of the sector." in all its fields, in order to increase the percentage of its participation in development activities and the gross domestic product.
He pointed out, "When we review the draft budget that was sent to Parliament, we notice that there are no details of those projects, and it is certainly assumed that there are major projects in parallel with the movement that we said for private sector projects," noting that "the investment allocations in the budget constitute 25%, approximately 49 percent." One and a half trillion Iraqi dinars, and these amounts are really large, and here we must go to the criterion of implementation and verification, especially when we see some details in those amounts. For example, there are regional development projects, there is the Iraqi Fund for Development, and there is the Reconstruction and Development Fund for the poorest provinces. Of course, these are all amounts, meaning, for example, the Fund. Al-Iraqi for development has allocated a thousand billion dinars, and the poorest provinces have allocated 500 billion dinars. These are all supposed to be real projects immediately.
Economic affairs specialist d. Mostafa Mohamed Ibrahim stressed that "investment expenditures are an important part of public spending, and they are among the means that direct the government's activities and raise economic and social development. That development be achieved in the economic sectors without increasing investment spending, which includes capital spending for the purchase of equipment, machinery, and tools, and for building factories, laboratories, and bridges.
Ibrahim continued, "Every increase in spending leads to the addition of new productive capacity that helps to advance the crippled economy, as investment expenditures take two forms: the first is spending on social capital projects, which included spending on giant projects such as roads, ports, railways, dams, and electricity projects. The second is spending on productive projects that the government produces in order to advance development and direct economic activity in the path that achieves its policies
He said: "The higher the ratios of investment spending compared to consumption, this indicates the accumulation of capital and productive capacity, and then the increase in economic growth rates, as we find that investment spending from 2003 to 2023 was fluctuating with ups and downs, and some years investment spending turns into operational, as we notice The 2021 budget has allocated an amount of (13,322,973) trillion dinars for investment spending, which constitutes (13%) of the total public spending amounting to (102,849,659) trillion dinars, compared to 2023, when investment spending amounted to (49,675,341) trillion dinars, at a rate of ( 25% of total public spending amounting to (198,683,719) trillion dinars, which means double investment spending for the year 2021.
And Ibrahim added, "Raising the percentage of operational allocations means that the government, within its platform, focuses on supporting investment projects in all sectors and recovering the current miserable situation from the sluggishness of government jobs that burdens the budget because of investment spending in terms of employing the Iraqi workforce, preserving the foreign currency, and achieving revenues that exceed oil revenues." And moving the youth labor market from 19 years old to 35 years old, which the sustainable development goals of 2030 focused on, eliminating unemployment and decreasing foreign labor.
And he stressed the importance of "the government moving seriously from consumer spending to investment spending because of its impact on the life of Iraqi society and the realization of their aspirations. In my humble opinion, the allocation of current investment spending before its approval by the legislative authority is the amount of the budget of a country in one of the countries of East Asia and the government Orientation towards investment spending from now on.
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