Fiscal Deficit Act
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Shafaq News / The Iraqi Council of Representatives (parliament) will resume its sessions next Saturday to discuss and approve a number of bills, including the draft fiscal deficit bill.
In the first paragraph of the meeting’s agenda, it was stated that Parliament will conduct the second reading of the draft fiscal deficit financing bill.
The government did not pay employees’ salaries for the month of last October, in a second consecutive delay due to the stifling financial crisis.
Last month, the Iraqi government sent a draft law 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.
According to statements made by parliamentarians to Shafaq News, the parliament will not agree to pass the bill with this amount, but rather it will reduce it to about 15 trillion dinars.
This law comes to secure legal cover for the government, given that Iraq has not approved a budget for the year 2020 due to the decline in financial revenues, the impact of the decline in oil prices in world 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.