Finance refers the borrowing law to the Presidency of Parliament


Parliamentary Finance


Borrowing Act

2020-10-19 06:20

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Shafaq News / The Finance Committee in the Iraqi Parliament announced, on Monday, that it agreed to refer the borrowing bill to the Parliament Presidency in preparation for its presentation in the next session for the first reading.

On Sunday, the Cabinet Secretariat sent a draft law on financing the fiscal deficit to the House of Representatives, relating to internal and external borrowing, in order to fill the deficit in the financial budget.

A member of the committee, MP Ahmad Hama Rashid, said in an interview with Shafaq News that “the borrowing law was presented and studied within the Finance Committee after it was referred in accordance with the constitutional contexts to the main committee, which is the Finance Committee,” indicating that “the last committee agreed to send it to the Parliament Presidency for reading it. First. ”

He added that “Parliament can reject the law or approve it in principle after it was presented during the first reading,” and expected that “the law will be presented during the upcoming close sessions.”

Rashid pointed out that “according to the constitutional contexts, the second reading needs a week or less in which the second assessment can be repeated and the issue discussed at length.”

This is the second time that the government has called on Parliament to grant it legal cover to finance the deficit in meeting operating expenses.

Last June, Parliament approved a law that allows the government to borrow 15 trillion dinars locally and 5 billion dollars abroad to finance the state budget deficit.

According to officials’ statements, these funds have run out in light of the insufficient financial revenues of the state to cover expenditures, as oil revenues per month amount to about 3 billion, while Iraq needs about 6 billion dollars per month to cover the salaries of state employees and other operational expenses.

Last month, the government approved the draft fiscal budget bill and sent it to Parliament, before withdrawing it again to make amendments to it, to be replaced by the Deficit Financing Act to Parliament.

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