The Iraqi parliament reduces the amount of borrowing that Al-Kazemi requested to 15 trillion dinars


Borrowing Act

2020-10-28 14:26

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Shafaq News / The Parliamentary Finance Committee announced, on Wednesday, that it had reached an agreement to determine the amount of borrowing to secure employees’ salaries, the ration card, and the expenses of the Ministry of Health .

The committee’s reporter, Ahmad al-Saffar, told Shafaq News, “The Financial Committee has calculated the money the state needs monthly, and thus it was found that it needs 5 trillion dinars per month, at a rate of 15 trillion for the last three months of the year 2020. ”

Al-Saffar added, “It is possible to grant borrowing between 15-20   trillion for insurance as a maximum, not 41 trillion, as the government requested by the borrowing law .”

Al-Saffar added, “The Finance Committee agreed to determine the amount of the borrowing and to cover the basic expenses such as salaries of employees and retirees, social care, ration card and the expenses of the Ministry of Health, with the transfer of other needs and benefits to the 2021 budget bill .”

Earlier, the head of the Parliamentary Finance Committee, Haitham al-Jubouri, addressed Prime Minister Mustafa Al-Kazemi to dispense with the legislation of the fiscal deficit financing law (the borrowing law).

Yesterday, Tuesday, the Iraqi government ruled out that parliament would reject the borrowing law, and it might even reduce the proportion of borrowing to finance the country’s budget deficit.

Earlier today, Wednesday, Ahmed Mulla Talal, spokesman for Prime Minister Mustafa Al-Kazemi, issued an explanation of the statements he made during his weekly conference on the borrowing law and securing the salaries of employees .

Mulla Talal said on his Twitter account that the decline in state revenues in the past several months is not sufficient to pay its salaries and other urgent obligations. On this basis, the government requested from Parliament additional borrowing authority to fill the financing gap until the 2021 budget presentation .

“The 2021 budget will be a reform budget par excellence and based on the requirements of the white paper, and measures will be taken directly aimed at improving state revenues and controlling expenditures, ” he added.

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