Parliamentary Finance sets the date for passing a decisive law to secure salaries


Borrowing Act


2020-10-31 13:22

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Shafaq News / The Parliamentary Finance Committee suggested, on Saturday, the passage of the borrowing law in the parliament next week, which is relied upon to fill the shortfall in employees’ salaries.

The Iraqi government presented a bill to Parliament authorizing it to borrow an amount of 41 trillion dinars to cover the fiscal deficit for the remaining months of this year.

However, parliamentary sources told Shafaq News that Parliament will reduce the borrowing value to only 15 trillion dinars.

The committee’s reporter, Ahmad al-Saffar, told Shafaq News that “there are great possibilities to approve the borrowing law next week, as there are no parliamentary sessions during this week.”

On the date of salary distribution and the frequency of late payment, Al-Saffar replied that “the government is concerned with paying the salaries and the parliamentary finances. It is not concerned with that.”

The Iraqi government is facing a stifling financial crisis that caused a delay in the distribution of employees’ salaries for the past month, about 20 days, due to the lack of sufficient financial liquidity and the exhaustion of borrowing amounts allocated to secure salaries.

Parliament and specialized experts warn against resorting to borrowing due to the debts it leaves and heavy financial consequences that may extend for years due to the lack of a successful fiscal and monetary policy that is capable of dealing with crises.  

This is the second time that the government has submitted an authorization from Parliament to borrow money, after the first time it borrowed 15 trillion dinars domestically and $ 5 billion abroad.

The borrowing comes to fill the financial deficit in the country due to the drop in oil prices caused by the Corona virus crisis, as revenues from selling crude cover 95 percent of state expenditures.

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