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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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    The Iraqi parliament votes on the financial budget... and a record deficit of 49.5 billion dollars

    Rocky
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    The Iraqi parliament votes on the financial budget... and a record deficit of 49.5 billion dollars Empty The Iraqi parliament votes on the financial budget... and a record deficit of 49.5 billion dollars

    Post by Rocky Mon 12 Jun 2023, 6:48 am

    [size=32]The Iraqi parliament votes on the financial budget... and a record deficit of 49.5 billion dollars[/size]
    [You must be registered and logged in to see this link.]Monday 12 June 2023 11:22 am (151 views)
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    Iraq's parliament on Monday approved the 198.9 trillion dinars ($153 billion) budget for 2023, which includes record spending on a growing government wage bill and development projects aimed at improving services and rebuilding infrastructure ravaged by neglect and war.

    According to lawmakers and a budget document, the budget deficit is estimated at 64.36 trillion Iraqi dinars ($49.5 billion), a record high and more than double the last budget deficit recorded in 2021.

    Lawmakers said the budget was based on an oil price of $70 a barrel and expectations for 3.5 million barrels of oil per day to be exported, including 400,000 barrels per day from the Kurdistan region.

    The budget sets the exchange rate for oil revenues in US dollars at 1,300 dinars to the dollar. This will remain in effect until 2025, but it will be subject to adjustment, and it includes the price of oil, which Iraq uses in light of its almost complete dependence on oil revenues.

    The budget adds more than half a million new public sector jobs, contradicting the recommendations of many observers who say Iraq should tighten fiscal policy.

    More than a million new workers have been added, including contractors, daily employees and full-time employees, said Mohamed Nouri, a member of the Parliament's Finance Committee.

    Ahmed Tabaqjali, a visiting fellow at the Middle East Center at the London School of Economics, estimated the number of new hires at about 600,000, which he said would raise the total cost of public wages and pensions to more than $58 billion (76 trillion dinars). ).

    “The more you spend this kind of money, the more vulnerabilities you have,” he said. The price of oil has to go up more and more just to keep spending...and it will lead to more and more borrowing.”

    The International Monetary Fund said in a note dated May 31: The increase in the public sector salary bill will contribute to the escalation of the deficit and financial pressure, unless there is a significant increase in oil prices.

    To break even, the fund stated that Iraq asked for an oil price of $96 per barrel, while the average price was $71.3 per barrel in May.

    "A tighter fiscal policy is needed to enhance flexibility and reduce the government's dependence on oil revenues while protecting important social spending needs," the International Monetary Fund said.

    Iraq's budgets are supposed to be approved before the start of the year they cover, but they are often delayed or not passed at all due to instability and political differences.

    The budget takes steps to address the long-standing differences between Iraq and the autonomous Kurdistan region, as oil revenues are to be deposited in an account supervised by the Central Bank of Iraq.

    Baghdad had previously had no say in Kurdistan's spending of oil revenues, as the region unilaterally exported crude oil via Turkey, despite Baghdad's objections.

    But Kurdish officials were forced to negotiate with Baghdad after Turkey halted crude exports in April when an international arbitration ruling ruled them illegal.

    Under an agreement concluded between Baghdad and Erbil in April, the Iraqi state oil marketing company (SOMO) will have the authority to market and export crude oil produced by fields controlled by the Kurdistan region.

    Oil flows have not resumed, although Baghdad asked Ankara to do so on May 11.

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