{The problem of numbers} brings back the debate over the region's entitlements
Iraq 10/29/2023
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Sulaymaniyah: Karim Al-Ansari
Economists in the Kurdistan region estimate that the regional government’s need will reach at least 940 billion dinars per month to manage the affairs of the regional government’s administrative institutions. On the other hand, some experts in energy and economic affairs in Sulaymaniyah do not see any financial deficit, pointing out that the political dispute is the reason. The controversy over the region’s entitlements returned to the forefront through the “problem of numbers” and data and their conflicting estimates of the need to pay salaries.
Financial expert Fadel Nabi Hassan said, “The resources sent by the federal government did not come in the correct way, and should have arrived in the form of advances and not as loans, because the regional government has a share in the state’s general budget.”
Hassan stated, in an interview with “Al-Sabah”, that “it is certain that the amount of 700 billion dinars will come in addition to the non-oil revenues of the region, as this may be enough to cover the salaries of employees only, but it is not enough for the rest of the matters,” indicating that “the regional government does not pay "Only salaries, but it also covers other expenses such as investment projects and their implementation, and therefore the federal government should send larger amounts than it is now."
Economic expert Abdul Salam Barwari said: “With regard to the financial revenues and dues demanded by the region, they can be looked at in Article 121 of the Constitution, because paragraph (a) of the article says that the region has the right to exercise executive, legislative and judicial powers, with the exception of what is stated in Article 120 of the exclusive powers of the federal government.”
Berwari continued in his interview with “Al-Sabah” that “Paragraph Three of the same article provides the regions and governorates with a fair share of federally collected revenues, and it is sufficient to carry out their burdens and responsibilities, taking into account their resources, needs, and the proportion of population therein,” pointing out that “Paragraph Fifth of Article 121 confirms that the regional government is responsible for everything required to administer the region, etc., regardless of whether there is imported, exported, or produced oil, and the same situation applies to the rest of the governorates.”
According to experts, the Kurdistan Region has not carried out any production or sale of its oil since last March, under an agreement with the federal government for SOMO to undertake negotiations to sell oil and obtain its imports for the benefit of the treasury.
Economic expert Mirza Mustafa said, “The region currently does not export oil and relies only on its internal imports and taxes. The federal government must implement Article 121 of the Constitution and not send an amount from time to time in the form of a loan.”
Mustafa explained, in his speech to “Al-Sabah,” that “the region needs 940 billion dinars monthly for salaries and retirement and to help people with special needs and the families of martyrs and Anfal, and it needs between 110 to 120 billion dinars to manage the region’s affairs, including necessary departments and services, in addition to purchasing electricity.” With 100 billion dinars, which could reach approximately one trillion dinars per month,” he said.
On the other hand, energy affairs expert Bahjat Ahmed says, “The region’s share is sufficient if it is according to the tables in the current budget law.”
Ahmed said in an interview with "Al-Sabah", "The region's share was stopped due to the current disputes and problems with the region's resources and customs numbers compared to the federal government's numbers. It is certain that the resources and the region's share are sufficient for all investment and operational expenses."
As for the financial expert, Mahmoud Dagher, he considered complaints about the lack of allocations as “a constant and continuous speech due to the lack of clarity of the regional government regarding the budget, which created a gap between what the regional government declares on the financial side and what is related to spending in the budget, and the failure of the federal government to declare the numbers it possesses.” .
Dagher stated in his interview with “Al-Sabah” that “the continuation of this situation for a long time indicates that the political agreements before the formation of the government are in violation of the economic and substantive agreement during the preparation of the budget, which is reflected in the confusion of the budget, its disposal, and the collection of its revenues, the control unit, the spending unit, and the revenue unit as Federal issue.
Edited by: Ali Abdel Khaleq
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