Economists warn: The decline in oil prices will lead to a disaster for employee salaries

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[size=52]Economists warn: The decline in oil prices will lead to a disaster for employee salaries[/size]

[size=45]The percentage of new appointments raised fears among experts about the increase in spending that it caused, especially with the lack of a clear future for oil prices during the next few years, and the possibility of their decline, which will cause the state to be unable to pay the salaries of all employees.[/size]
[size=45]While the percentages of employee salaries in Iraq were about 29.7 percent of the tripartite budget, in addition to the new appointments whose jobs were divided between appointing free lecturers and contracts in all ministries, as well as appointing the first and those holding higher degrees, which came to meet the new appointment requirements approved by the government. Member of the House of Representatives, Thaer Al-Shuwaili, said in an interview with (Al-Mada) that “there is nothing in any country called that everyone must be appointed, as the plan and work of the government’s program is to advance the economy in order to create a balance in work,” stressing that “the appointments were approved by virtue of their inclusion in “The general tripartite budget, so it did not significantly affect it.” Al-Shuwaili adds: “After the end of the tripartite budget, these appointments will burden the state if solutions are not found.”[/size]
[size=45]He continues, “The appointments file affected the tripartite general budget, but it was necessary to work with the plan of the Federal Service Council from the beginning,” noting that it “gives a kind of justice and entitlement.”[/size]
[size=45]For his part, economic affairs researcher Nasser Al-Kanani told Al-Mada, “If oil prices fall, there will be a major imbalance in all aspects of the state, not just salaries.” He adds, “There are revenues and expenditures, but the latter are salaries, operational and investment, and if we do not have amounts to cover them as well as part of the country’s debt amounts, there will be an economic catastrophe, as only last year we had a deficit estimated at 63 trillion, in addition to the debts.” Internal and external, as well as expenses and expenditures.” Al-Kinani pointed out, “Population growth in the country requires financial growth, which requires industry and agriculture, and in order to absorb unemployment rates, we must have financial capacity.” For his part, Saif Al-Halafi, a researcher in banking affairs, confirms to Al-Mada, “The problem of the basic Iraqi budget, despite it being a tripartite budget, is that it relies heavily on oil. There are major challenges in the issue of the oil market, such as OPEC and the Saudi and Russian positions. All of these “The challenges affect the Iraqi budget.” He pointed out, “There is also the issue of the American elections, as when they approach, the president or the ruling party tries to make oil prices low so that this does not affect the overall will of the American voter, and this is what we see in the pressure on the Saudi side to reduce oil prices and increase supply.” Al-Halafi explains, “The real problem is that Iraq’s budgets are heavily dependent on oil, but with this problem the Iraqi government faced a challenge to satisfy the Iraqi street by providing a large amount of appointments, and although we support providing appointments, they are a burden on the public sector, so The Iraqi government will face a deficit in paying salaries if there is any margin of decline in oil prices.”[/size]
[size=45]Al-Halafi believes, “There are great desires to raise the salary scale because at their current rates they are not sufficient in the face of the level of inflation in the country and the high cost of living.”[/size]
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