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Experts warn of the collapse of the services sector
Iraq 12/28/2023
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Baghdad: Haider Al-Jaber
The almost free services that cost the state treasury huge sums of money herald the collapse of the entire service sector, as the modern Iraqi state has continued to support the most important sectors that affect the lives of citizens and provide them at nominal prices, despite the changing economic, political, social and economic conditions.
According to the head of the Parliamentary Services Committee, Ali Al-Hamidawi, collecting money for these services does not exceed 10 percent of the real value, while the state spends about 75 percent on them. Al-Hamidawi told “Al-Sabah”: “These services, whether related to water or sanitation, require receiving remunerative wages to maintain them and ensure their continuation.” He added, "The amounts allocated for maintenance or establishing new projects are small, and we need collections to improve the quality of services, because the government collects about 10 percent of water and electricity services, while the general budget bears more than 75 percent of the real cost." He added, "The services need projects, rehabilitation, and maintenance, and the Jababa does not match the reality of the services provided." He called for “the use of electronic collection because it will address this problem and will serve institutions that work with self-financing,” stressing “the need for governance in this file.” Al-Hamidawi criticized “the existence of a discrepancy in wages,” and considered that “the problem is borne by the institutions concerned,” stipulating that “there should be Government oversight of performance and transgressions.” The Iraqi state still imposes outdated symbolic fees, while the services sector can be invested in financing the general budget and covering the expenses of these services.
The economic expert, Safwan Qusay, told “Al-Sabah”: “It is necessary to restructure government units to transform them from loss-making units to units that cover the cost.” He added that “the government services provided need to be sustainable, and this can only be achieved by being sustainable.” A value that at least covers the cost,” pointing out that “some services are supported by the government, which is necessary.”
He continued: “Some services can create a productive environment for government units, and reconsider pricing to be consistent with the current reality.” He pointed out that “some accounting transactions are completed for only one hundred dinars,” warning that “some important revenues cannot continue with the same quality.” Except by covering it financially.” Qusay called for “developing government units and working with an investment mentality,” and explained that “the cost of some services is very low and is not worth the effort and spending on them, which calls for reconsidering the pricing of some fees in a way that does not directly reflect on the lives of citizens.”
He stressed that “government support must be for production and not consumption, and if the government succeeds in re-evaluating the cost of services and revenues generated, the service units will be productive and at a high level, such as public transportation and public health,” adding: “Some segments that cannot afford it can be excluded.” fees for these services,” calling for “developing a system for pricing government services according to a new vision.”
Edited by: Muhammad Al-Ansari
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