Deficit Financing Law
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Shafaq News / On Saturday, the Iraqi parliament ended the first reading of the draft law on financing the fiscal deficit, which would secure the salaries of employees and retirees.
A representative source told Shafaq News, “The parliament held its session in the presence of President Muhammad al-Halbousi and his deputy, Bashir al-Haddad, and the number of deputies is 170, during which it ended the first reading of the draft law on financing the financial deficit.”
The Iraqi government recently sent a bill to borrow 41 trillion dinars (about 34 billion dollars) to Parliament for approval, with the aim of financing the deficit in paying employees’ salaries for the remaining months of this year.
And last month, Iraqi Finance Minister Ali Allawi said that the volume of foreign debts owed by his country amounted to 160 trillion dinars (about $ 133.3 billion).
The Iraqi authorities have not yet approved a budget for 2020 due to the decline in financial revenues and the impact of low oil prices in global markets due to the consequences of the “Corona” virus.
The government is struggling to secure employee salaries and other operating expenses, due to the decline in oil prices due to the Corona pandemic, which has paralyzed large sectors of the world economy.
Iraq relies on oil sales revenues to finance 95 percent of state expenditures.
For its part, the Parliamentary Finance Committee issued a clarification regarding the fiscal deficit financing bill, in which it indicated legal violations according to what was mentioned in the clarification text below: