two hours ago
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Economic expert Abd al-Rahman al-Mashhadani commented today, Saturday, on the International Monetary Fund paper regarding the risks of the Iraqi economy in the coming years, and regarding the increase in inflation rates as “nature concerns,” he stressed the need to amend the salary bill.
“The analytical paper issued by the International Monetary Fund is regular, as we warned about it a long time ago, that is, from the date of announcing the draft general budget law,” al-Mashhadani said in a press interview seen by Taqaddam.
He added, “It is not correct to organize a budget of 199 trillion dinars, and 50 trillion of them are operational expenses, given that these expenses will remain a permanent commitment, and this commitment will not stop, and with the continued increasing dependence on oil revenues.”
The economist explained: “If we are able to cover the deficit during the current year, then it is certain that we will not be able to cover it during the next year,” noting that “The International Monetary Fund title of the analytical paper was represented by ‘Where does the government finance from?’, given that its monthly oil revenues amount to 7 billion. A dollar, or 10 and a half trillion dinars.
And Al-Mashhadani stated, “If the government decides to spend at the same pace, it means that it needs 16-16.5 trillion dinars per month, meaning it has a deficit of 6 trillion dinars, which will be funded by the Central Bank through the issuance of new cash.”
The expert pointed out, "This is what the International Monetary Fund warned about, which means an increase in inflation rates," pointing out that "these fears are normal and acceptable, so it confirms an important matter, which is the salary bill."
And he stressed, “The need to reconsider this bill; Especially when we are talking about 59 trillion salaries and wages, 27 trillion dinars for social protection, and 5 million retirees.
He concluded, saying: “These numbers constitute a huge burden on the public budget.”
The experts of the International Monetary Fund, who concluded their visit to Iraq, had presented an analytical paper on Iraq's economic policy, entitled "Where does the government finance?", And it dealt with the implementation of the Iraqi authorities' plans for public finances, which could push the inflation rate to an escalation, The foreign exchange market returns to volatility.
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