Economic: Iraq enters the new fiscal year with a surplus estimated at 45 trillion dinars

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[size=52]Economic: Iraq enters the new fiscal year with a surplus estimated at 45 trillion dinars[/size]

[size=45]Economist Abdul Rahman Al-Mashhadani ruled out that the volume of actual and total spending for Iraq in the next year 2024 will exceed the estimated spending in the general budget.[/size]
[size=45]Al-Mashhadani said in a press statement, “It is unlikely that the volume of actual spending for the year 2024 will exceed the estimated or estimated volume,” pointing out that “it is possible that the proportion of spending will rise slightly, but not by a large percentage, as the volume of actual spending for the current year 2023 reached within 9 The months are about 78 trillion dinars, and it is possible that it will reach about 100 trillion dinars or a little more, which is the actual volume of spending.”[/size]
[size=45]He added, “The 2024 budget has been approved since the beginning of the year, and may reach about 150 trillion at best. The problem here is not the magnitude of the numbers, but rather the extent of the spending capacity given the size of the economy.” It is possible that expenditures will rise from 110 to 120 trillion, and may reach about 150 or a little more, and this percentage is not large and it is unlikely that it will reach 200, for example, as this is extremely difficult.”[/size]
[size=45]He continued: “In case of regularity, Iraq has 130 to 132 trillion, which are governing expenses that must be paid by the government, and include salaries, wages, the social protection network, debts, interest and installments of public debt, and the costs of licensing rounds, and governing expenses of the order of 10 trillion, which are allocations for the ration card and the purchase of wheat. And pills and allocations related to medicines and more, amounting to 18 to 20 trillion, will go to finance the investment side of the 2024 budget.”[/size]
[size=45]He pointed out that “during the next budget, issues related to fluctuations in the price of oil and the volume of produced quantities will be taken into account, because Iraq is part of OPEC+, so it must adhere to what the organization decides, and Iraq has no place to be outside the controls of this organization, because it is not possible or even impossible to confront it.” The price war between the major producers, which are Saudi Arabia and Russia, and that any collapse in oil prices, the Iraqi economy will be the most affected.” He added: “The Kingdom of Saudi Arabia has a sovereign fund of more than 7 billion dollars, and Russia also has an economy that possesses various resources, and these countries do not have oil.” It represents its only production, and therefore the biggest affected person is Iraq, because it depends in its general budget on oil, as it represents 99% of oil revenues, and the budget is financed by up to 60% of the gross domestic product, and 20% of the remaining 40% depends on oil. Such as electricity or industrial sectors that depend on electricity and that also depend on oil, in addition to the work of refineries, this 20% works to operate other sectors that have direct contact with oil.”[/size]
[size=45]He added, “Iraq depends on 80% of its gross product on oil as an engine and primary resource, and therefore it will not be able to face fluctuations in oil prices alone. Spending in 2024 will be regular, given that the budget has been approved in advance, but we will not be able to reach the levels that have been determined.” In 2023, which reached 200 trillion.” He concluded by saying, “Iraq’s financial situation is currently comfortable if oil prices remain stable, as oil revenues were greater during the current year, as the total oil revenues during the past 9 months amounted to about 94 to 94 trillion dinars, and spending reached 78 trillion dinars, in addition to a percentage A good amount of interest ranges between 15 and 17 trillion within 9 months, and this number may increase and reach 20 trillion, in addition to the presence of a cash surplus balance from 2022 of the order of 25 trillion, so Iraq will enter its new year with a cash surplus of about 45 trillion dinars.”[/size]
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