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.

Join the forum, it's quick and easy

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

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Newspaper: Al-Sudani's government pledges collide with the budget deficit... Electoral or enforceabl

    Rocky
    Rocky
    Rocky
    Admin Assist
    Admin Assist


    Posts : 280906
    Join date : 2012-12-21
    • Post n°1

    Newspaper: Al-Sudani's government pledges collide with the budget deficit... Electoral or enforceabl Empty Newspaper: Al-Sudani's government pledges collide with the budget deficit... Electoral or enforceabl

    Post by Rocky Mon 26 Jun 2023, 5:19 am

    [You must be registered and logged in to see this image.]
    Newspaper: Al-Sudani's government pledges collide with the budget deficit... Electoral or enforceable promises?

    [You must be registered and logged in to see this link.]
    11:57  2023-06-26  22  Arab and international reports 0



    Iraqi Prime Minister Muhammad Shia al-Sudani announced pledges to implement five priorities, some of which require strict control policies, and others require funds, but he did not mention where the money would come from to implement them, as long as the budget that was approved recently notes a deficit estimated at 63 trillion dinars, equivalent to $49 billion.
    This prompted some observers to say that, since assuming the presidency of the government last October, Al-Sudani tends to make promises without backing them up with figures, and without showing any evidence of them in the budget, so that they appear as electoral promises rather than an implementable program of action.
    Al-Sudani said in a local television interview that his government is keen to implement five priorities, which are “tackling poverty, confronting unemployment, combating financial and administrative corruption, in addition to providing services and economic reform, and there is another priority that requires expediting the completion of projects that have been obstructed for years.”
    Al-Sudani also promised that social protection would cover 42,000 displaced families, as well as a reduction in tuition fees for students covered by social care in public universities for evening studies and private universities.
    In addition to the fact that the issue of combating financial and administrative corruption has not been taken regarding measures leading to the overthrow of the well-known major corruption heads in Iraq, and its agents deployed in Parliament, government institutions and the Central Bank, including those suspected of carrying out what has become known as the “theft of the century”, priorities require. Other investments The recently approved budget does not provide sufficient financial cover for its implementation.
    Al-Sudani seemed to gather some scattered capabilities when he said that the country could save $3 billion if the Karbala refinery operated with a capacity of 140,000 barrels per day, which was used to import oil derivatives.
    Iraq's budget for the current year amounts to 198.9 trillion dinars ($153 billion), but its deficit is more than double the deficit recorded in the 2021 budget. More than two-thirds of the budget goes to covering the costs of salaries and government spending, which has previously raised many questions about the reason The deficit has ballooned out of proportion to the country's new employment rates.
    The government is betting on borrowing to cover the deficit. This means that if it wants to implement investment projects that lead to reducing poverty and unemployment rates, it will need to borrow more money.
    Economists explain the reason for the inflation of the budget, the deficit, and the need to borrow as interconnected links related to levels of spending ravaged by corruption, including hundreds of thousands of jobs and fictitious pensions that militias and political parties benefit from, especially since they are parties that pay salaries to their members, and not like other parties that depend on donations from their members. .
    “The implementation of the provisions of the budget law will be in accordance with the actual financial liquidity, especially with regard to investment projects,” said Salah Nuri, former director of the Office of Financial Supervision. He continued, “All previous budgets were unable to achieve the expected revenues, and because the financial liquidity is much less than expected; Priority is given to the operational budget in terms of salaries and governing expenses.”
    Nuri added, “If it requires the implementation of all budget items; The financial ceiling will be covered by borrowing, and investment projects will most likely not be completed.
    For his part, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, said, "The deficit rate will be controlled through several chapters, including the accumulated cash surplus for the previous months, as well as the issuance of government bonds and internal borrowing."
    On June 12, the House of Representatives approved a three-year budget that relies on oil for 83 percent of its revenues. This is based on a price of $70 a barrel. If the price of oil falls, the deficit will increase.
    However, what is considered a “reality” is that the government does not have sufficient funds to implement investment projects. In order to overcome two decades of continuous failure, it is forced to seek the help of external investments to implement stalled projects and projects that the government wants to say it has implemented, with the money and contributions of others, and not with its own money.
    Observers say that although foreign investment projects, especially those implemented by the Gulf states, are a vital outlet to extricate Iraq from the circle of failure that surrounded it throughout the years after the 2003 invasion, the Iraqi governments would have been able, had it not been dominated by corruption, To carry out an important aspect of these investments.
    Iraq has a cash surplus of about $110 billion. While part of it is used to provide flexibility to the Central Bank to finance government spending and pay off foreign debt installments, another part of it can still be invested in the implementation of much-needed economic projects, in the areas of infrastructure reform, transportation and electricity networks, which is a basic basis for serving the investment projects that are needed. Funded by outside investors. Unless the government undertakes these actions, the foreign investment projects themselves may be stalled or not bear fruit in a timely manner.
    Source: Al-Arab newspaper, London
    [You must be registered and logged in to see this link.]
    • Back to top
      Current date/time is Sun 17 Nov 2024, 7:59 pm