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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    An analysis of Iraq's tripartite budget data: improvisation and blame lifting

    Rocky
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    An analysis of Iraq's tripartite budget data: improvisation and blame lifting Empty An analysis of Iraq's tripartite budget data: improvisation and blame lifting

    Post by Rocky Sat 22 Apr 2023, 2:36 pm

    [size=45][size=41]An analysis of Iraq's tripartite budget data: improvisation and blame lifting[/size]
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    Today, Friday, an analytical article talked about the tripartite budget data for Iraq, as it indicated the existence of incomprehensible numbers contained in the budget report.
    An analytical article published by academic researcher Yahya Al-Kubaisi, under the title “Improvisation and Lifting the Blame,” stated the following:
    “Federal Financial Management” Law No. 6 of 2019 stipulates that “the deficit in the planning budget may not exceed 3% of the gross domestic product” (Article 6 / Fourth), and it also requires that the Bureau of Financial Supervision submit a report on the federal financial statements / final accounts To the Federal Minister of Finance on September 15 to study it before presenting it to the House of Representatives before September 30 for discussion and approval (Article 34 / III / B). This article is an affirmation of what was stated in Parliament Law No. 13 of 2018, which means that the final account is presented to the parliament within a period not exceeding nine months from the date of the end of the fiscal year that ends on December 31 of each year (Article 21/First ). No one in Iraq has paid attention to the two legal requirements, and it is certain that the budget will pass with a deficit rate of more than ten figures, the number specified in the law, and no one will remember the subject of the final accounts that have not been submitted for ten years!
    The draft budget law was referred to the House of Representatives on March 16, 2023, and it was assumed that the House of Representatives would read it first in preparation for its legislation, as soon as possible. We are talking here about a budget whose submission was delayed by almost 100 days after the beginning of the fiscal year! But this did not happen, as we witnessed a public conflict between the Prime Minister and the Speaker of the House of Representatives over the budget, which led to a delay in presenting it to the parliament, and because of the insistence of the coordination framework, which is the ruling coalition today, to present it, the Speaker of the House of Representatives granted himself a 15-day leave Beginning on April 4, an objection to the budget, and indeed, the draft law was not read until April 5, in a session moderated by the first deputy of the House of Representatives!
    The report of the Finance Committee regarding the draft budget law indicated that the estimated revenues for the fiscal year 2023 amounted to 134.6 trillion Iraqi dinars ($103.5 billion), while the volume of estimated expenditures for the fiscal year 2023 amounted to 199 trillion dinars ($153 billion), and that the planned deficit is approximately 64.5 One trillion dinars ($49.6 billion), which constitutes 48% of the total revenues! And that among the sources of financing this huge expected deficit, is the issuance of bonds and treasury transfers to government banks, amounting to approximately 28.5 trillion Iraqi dinars. And internal and external loans of approximately 13.2 trillion dinars (more than 10 billion dollars)!
    The report also showed that the total number of the workforce in the public sector has increased by approximately 833 thousand employees in the year 2023, and that this increase constitutes 13% of the total workforce in the year 2021!
    However, reviewing the budget law for the year 2021 reveals that the total workforce in that year amounted to 3 million and 263.8 thousand employees, and by calculating the increase for the year 2023 the number will be 4 million and 96.3 thousand employees, and this means that the increase in the workforce amounted to 25.5% and not 13% as reported!
    The report also indicates that the number of the workforce in the Ministry of Education has increased from 154.1 thousand employees in the year 2021, to 963.9 million employees in the year 2023, an increase of 525%! And that the number of the workforce in the Ministry of Health has increased from 116.4 thousand employees in the year 2021 to 488.2 thousand employees in the year, i.e. the increase rate is 320%! Without anyone in the Finance Committee noticing that such numbers are not only illogical, but they also contradict the numbers related to the increase in the workforce mentioned in the same report! In fact, these numbers are incorrect, and it is shameful that they are included in an official report!
    There are other incomprehensible figures mentioned in the report, among them “the total public debt balance has reached very high rates and carries with it future financial risks, if its balance by the end of the year 2022 reaches the amount of “95” trillion dinars, of which 70 trillion is the internal debt! This is a completely incomprehensible number regarding external debt! In discussing the general budget for the year 2021 in the Iraqi parliament, former Finance Minister Ali Abdul Amir Allawi announced that the size of Iraq’s external debt amounted to 160 trillion dinars ($133.3 billion), even if we omitted from it the debt of Saudi Arabia and Kuwait, which the Iraqi government does not recognize and considers it a non-existent debt for To her, this means that the size of the external debt amounts to 93.3 billion dollars and not 25 trillion dinars (19.2 billion dollars)!
    However, in isolation from these unjustified and incomprehensible errors, there are important observations that the report concludes, including talk about a very large expansion in the volume of estimated current expenditures, which constituted 75% of public spending, and therefore the existence of high financial risks related to the ability of the state treasury to Securing public expenditures with the expectation of a decrease in global demand and oil prices, an increase in the currency issued for circulation, which exceeded 95 trillion dinars, and an increase in pressure on the volume of foreign currency reserves in the Central Bank of Iraq (the report did not indicate at all that the issuance of bonds and treasury transfers to government banks is an explicit violation of the Bank Law Central Bank of Iraq, which prohibits lending to the government).
    The most important recommendations fulfilled the need to reconsider the volume of planned spending, reduce the level of deficit and re-prioritize public spending. These recommendations would push the committee to return the budget bill to the government to do so, which did not happen. Rather, the committee recommended that the draft law be presented for reading. The second is a prelude to its legislation!
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