Experts: The budget raises concerns about the country's economic future

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[size=52]Experts: The budget raises concerns about the country's economic future[/size]

[size=45]Translated by: Hamed Ahmed[/size]
[size=45]Iraq's passage of the largest budget in its history has raised fears among experts, who say it will take the country's expenditures to the brink of collapse, while government supporters insist this budget law is vital to mitigating a long post-election political debate that has led to entire years without budgets. The last one is in 2022.[/size]
[size=45]Iraq had previously spent 2014 and 2020 without a budget, for reasons also due to sharp political divisions.[/size]
[size=45]A report by (The National) news website, translated by (Al-Mada), indicated that “despite the passage of 18 months without a budget amid record oil revenues and legislation restricting government expenditures to levels lower than the previous budget, the Iraqi parliament took four consecutive sessions in order to pass this year’s budget.” ».[/size]
[size=45]The report added, "Part of the reasons for the delay were due to disagreements between different political blocs, most of which are about the Kurdistan region's share of the budget, the rights of certain other provinces within the region and how to market their oil exports."[/size]
[size=45]He pointed out, “The budget, which amounts to $152 billion, of which 12.6% is allocated to the Kurdistan region, has raised concerns about whether oil prices fall below $70 a barrel, which is the expected average price per barrel over three years according to which the budget was calculated, then it will The state will not be able to fulfill what was approved in this agreement.[/size]
[size=45]The report pointed out, "The International Monetary Fund had even worse predictions regarding the oil price rate that it relied on in calculating the budget of Iraq, a country whose economy depends entirely on oil."[/size]
[size=45]And he continued, "The Monetary Fund confirmed that Iraq needs an average price of a barrel of up to 96 dollars, and the Brent crude oil benchmark price index for Monday closed at 72 dollars a barrel."[/size]
[size=45]"The budget is based mostly on operating expenses, and there is not enough share of the budget allocated for investment," says Sajjad Jiyad, a political analyst and fellow of the American Century Foundation Institute.[/size]
[size=45]Jiyad denied, "The existence of real allocations for investment in the budget, as it focused only on expanding what was in previous budgets and left only a few billions for investment."[/size]
[size=45]Jiyad indicated, "Even if the government was able to implement 80% of the budget items, it would not increase oil revenues, but this would lead to the creation of new job opportunities."[/size]
[size=45]And the report continues, "Iraq suffered from low executive budget allocations, which impeded spending on vital reconstruction projects even during times of high oil prices."[/size]
[size=45]The report noted, "The government must instead increase investment spending and reduce part of other expenditures in order to mitigate a high deficit estimated at $49 billion."[/size]
[size=45]And Jiyad goes back to saying, "If this is not done, and if oil prices fall at the time, we will not have a real way to mitigate that deficit unless we reduce those expenses."[/size]
[size=45]For his part, the government advisor for financial affairs, Mazhar Muhammad Salih, said in an interview with the Associated Press, translated by Al-Mada, that “the new budget will be a cause for concern, as it depends mainly on oil revenues, and if oil prices fall, the size of the deficit will It will increase, which will force the government to borrow. It is a dangerous expectation that will lead to debt problems.”[/size]
[size=45]In addition, Mohsen al-Mandalawi, First Deputy Speaker of Parliament, said, "It is vital that we reduce spending and increase non-oil revenues to enhance the state's imports in the sectors of agriculture, services and reconstruction."[/size]
[size=45]While the Prime Minister's advisor for foreign relations, Farhad Alaeddin, stated that "the budget law is vital for the implementation of the government program and the projects it includes."[/size]
[size=45]And Aladdin continued, “The budget law this time provides continuity and prevents any obstruction to government performance. The government will be able to start implementing infrastructure projects and transform Iraq into one of the largest workshops in the region ».[/size]
[size=45]For Prime Minister Muhammad Shia al-Sudani, according to the report, “the budget that the Council of Ministers voted on last March 13 prioritizes the basic needs of Iraqi citizens and their families, and aims to meet their aspirations for government services, construction projects, and infrastructure.”[/size]
[size=45]And the report went on, “Al-Sudani said that the budget addresses the phenomenon of recurring projects’ delay or failure that has accompanied governments over the past years. This vision also confirms the reduction of operational spending, the development of non-oil revenues, and the support of the private sector.”[/size]
[size=45]For: (The National) and (The Associated Press)[/size]
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