The delay in sending the 2024 budget schedules hinders its passage... a large deficit and disruption

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[size=52]The delay in sending the 2024 budget schedules hinders its passage... a large deficit and disruption of government projects[/size]

[size=45]The government is facing criticism from various political factions and the relevant committees in Parliament, due to the delay in sending the state’s general budget schedules for the current year 2024, at a time when the government estimates the financial deficit at about 80 trillion dinars ($60.6 billion), out of a total budget worth about 228 trillion dinars.[/size]
[size=45]The percentage of increase in the state’s actual public expenditures is approximately 22%, while public revenues decreased by about 26 trillion dinars, by 19%, which is reflected in the estimated deficit percentage, according to what the Minister of Planning, Muhammad Tamim, confirmed in press statements, earlier in the year. This April.[/size]
[size=45]The Minister of Planning indicated that there are a number of challenges facing the government in managing financial and economic matters effectively.[/size]
[size=45]He stressed that work is being done to submit the budget schedules this year as quickly as possible, to avoid the negative effects that may result from delaying this. Meanwhile, government spokesman Bassem Al-Awadi said that the Council of Ministers will approve the budget schedules within two weeks, and that salaries are fully insured for a year and amount to 69 trillion dinars.[/size]
[size=45]But a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, held the government responsible for delaying the budget, pointing out that many projects have been halted due to the failure to release financial allocations, and that there is a parliamentary tendency to host the Prime Minister, officials of the Ministry of Finance, and concerned parties in Parliament to discuss the reasons for the delay.[/size]
[size=45]Al-Kadhimi stated that the Council of Ministers has put the final touches on the budget, and it is expected to be sent to Parliament for a vote after the Eid al-Fitr holiday (which ended yesterday, Sunday).[/size]
[size=45]Al-Kadhimi revealed that there were increases in salary requirements that reached 8.5 trillion dinars per month, which led to an increase in the size of the budget to 228 trillion dinars, and that the projects of the Ministries of Health and Education were halted due to the delay in approving the budget.[/size]
[size=45]He called for the need to expedite sending the budget schedules to Parliament, in order to disburse financial allocations that should not be affected by delays in the schedules.[/size]
[size=45]The Finance Committee also confirmed that the budget delay is related to the large fiscal deficit ceiling.[/size]
[size=45]A member of the Finance Committee, Uday Awad, said that the amendment to the budget law was stalled due to the high ceiling of the total budget deficit, which reached more than 80 trillion dinars, so trends went to reduce public spending.[/size]
[size=45]Awad added that the ceiling for projects in the current year will be less than approximately in 2023, thus preventing the inclusion of any new project in the budget and being limited to ongoing projects. This will deprive many governorates of new projects due to the financial deficit and the failure to achieve non-oil financial revenues.[/size]
[size=45]He pointed out that the budget schedules and items are not fixed because oil prices and financial resources are fluctuating, and the numbers of employees and retirees are increasing, in addition to the creation of new job grades, which is cause for concern and portends a major economic disaster.[/size]
[size=45]He stressed that there is no specific date for sending the budget to the House of Representatives, due to the lack of solutions to the financial deficit, expecting that “the Council of Ministers will send the budget to Parliament after the Eid holiday.”[/size]
[size=45]He explained that the approval of a tripartite budget last year gave the government the authority to spend the 2023 budget, while the 2024 and 2025 budgets must be reviewed by Parliament because some projects ended last year, and there are financial variables related to the state’s revenues and outputs.[/size]
[size=45]For his part, economic researcher Ali Al-Amiri believed that external and internal debts and the rise in operating expenses within the budget schedules exacerbated the deficit rate and posed a serious threat to the Iraqi national economy.[/size]
[size=45]Al-Amiri added that political conflicts and competition to achieve financial gains from the budget are considered a major reason for the delay in its approval, and speeding up its approval in Parliament depends on partisan and political consensus.[/size]
[size=45]He indicated that the government did not take advantage of the opportunity of high oil prices and the high financial revenues coming from them to allocate a financial portion to pay off debts and reduce their impact in order to reduce the high levels of debt owed by Iraq.[/size]
[size=45]He pointed out that the appointments, which have reached tens of thousands without real planning, will be a burden on the state, and it is not possible to continue paying salaries with any possible decline in oil selling prices in global markets.[/size]
[size=45]Al-Amiri stated that high levels of deficit will deplete the state’s financial resources, restrict opportunities for sustainable development, and expose the country to a debt crisis that cannot be eliminated unless it is overcome through optimal investment of state resources and reducing levels of government spending.[/size]
[size=45]He stressed the importance of opening new areas for investment and diversifying the sources of public income for the Iraqi state in order to overcome a major financial and economic crisis that may cost Iraq many losses at the internal and external levels.[/size]
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