Parliamentary Finance: The financial crisis is temporary and resorting to borrowing is the easiest solution to overcome it

06/20/2020 13:23

Number of readings 9

Section : Iraq

Baghdad / Obelisk: The Parliamentary Finance Committee’s decision, Ahmed Al-Saffar, considered Saturday that the financial crisis in Iraq is temporary, and is the result of a mistake in the financial and economic policies, suggesting resorting to borrowing through temporary treasury bonds to bypass the crisis, and that the fiscal budget for 2020 will be private And semi-annually.

Al-Saffar said in an interview with “Al-Masala” that the fastest and easiest solution to overcome the financial crisis or part of it at the present time, which does not cost the government much, is to resort to borrowing through temporary treasury bonds, indicating that the next step for it should include redrawing the financial policy of the Iraqi state In general at the level of public spending and revenue.

Al-Saffar added, that the general indicators indicate that Iraq is a rich country and its resources are many material and human, and the country is not in a real crisis but rather a temporary result of the error in the financial and economic policies since 2003 and the transformation of the Iraqi economy from a product to unilateral rentier depends on one source, which is oil As soon as it decreased, we found ourselves in this crisis, and that the government should not only search for salaries, but rather search for the development of sectors that address unemployment and poverty.

Al-Saffar pointed out that we entered into the month of June, and until the moment there is no budget, which made us demand in the parliament session last Wednesday, the government to send it quickly before the end of the current month. Emphasis will be placed on the operational side and the revenues that will be financed by it are present. As for the projects proposed for the current year, they can be rotated to the budget for next year.

Al-Saffar continued, that Iraq is in a crisis and its cause is not a lack of resources, but rather because of mismanagement of these resources. The three will not address much of the budget deficit because if we cut all the salaries and allocations for the presidencies, the amount will not be large enough to guarantee a clear percentage of public spending, just as those allocations were approved by law and anything that is approved by law can only be changed by law.


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