387 Policy 11/19/2020 20:24
Baghdad today – Baghdad
The Kurdistan region of Iraq intends to send a delegation to the capital, Baghdad, to negotiate the fate of the salaries of Kurdish employees, after the tug of war that occurred after the parliament voted on the borrowing law, amid the Kurdish parliament’s boycott.
Last Thursday, Parliament approved the internal and external borrowing law worth 12 trillion dinars (10 billion dollars), in an effort to end the crisis of delayed payment of state salaries that has been going on for nearly two months.
The withdrawal of the Kurdish representatives from the voting session came as an objection to the article stipulating that the Kurdistan region’s share of the total actual spending (current expenditures and investment project expenditures) be determined after excluding sovereign expenditures, “on the condition that Kurdistan is committed to paying the dues of oil exported from the region and in the quantities specified by the Iraqi Oil Marketing Company. “Sumo exclusively and the federal non-oil revenues, and in the event of non-commitment by the region, the expenses may not be paid to the region, and the violator of this text bears legal responsibility.”
In various and numerous situations, issued by higher authorities in the Kurdistan region, following the parliament’s approval of the borrowing law, the Kurdish atmosphere ignited with statements and statements that reached the point of asking the Kurds to leave the capital, Baghdad.
Delegation to Baghdad
The spokesman for the Kurdistan Regional Government, Gutiar Adel, had confirmed earlier that a Kurdish delegation will visit the capital Baghdad soon, to bring points of view closer and reach a comprehensive agreement against the background of the crisis that erupted after the session of passing the borrowing law.
According to the spokesman, “The delegation will prepare all the documents and figures about the region’s oil exports, border crossings revenues and the number of employees, and they will be presented to the federal government.”
Adel added in an interview with (Baghdad Today), that they are “waiting for a decision from the government to send an amount of 320 billion dinars and complete the legal agreement concluded with it until the end of this year, because the agreement is approved in the 2019 budget law.
He pointed out that “the upcoming visit comes to complement the transparency with which the regional government deals in all its dialogues with Baghdad, and we are ready to hand over revenues according to the next agreement.”
In explaining the Kurds’ step to an understanding on the borrowing law, Uday Shaalan, the representative of the Al-Fateh Alliance, confirmed today, Thursday, that it is not possible to amend or cancel the paragraph that concerns Kurdistan of the borrowing law.
Shaalan told (Baghdad Today), “The Kurdish forces conducting dialogues with the political forces in the capital, Baghdad, with the aim of modifying or abolishing the paragraph binding on Kurdistan by the borrowing law. It did not come with any results. This matter is legislated according to a law, and this paragraph cannot be tampered with according to the dialogues. Or political and other courtesies. ”
He added that “the law is amended by a law, and the amendment of the paragraph binding on Kurdistan by the borrowing law needs a new law in Parliament,” indicating that “the parliamentary and political majority rejects any amendment or cancellation of this paragraph, but rather stresses the need to adhere to it, and the government cannot not apply it.” , Being binding on all authorities according to the law enacted in the House of Representatives.
There are no guarantees
A member of the Kurdistan Regional Parliament, Othman Karim, confirmed that there are no guarantees that the federal parliament will retract the vote on the fiscal deficit financing law.
Karim said in an interview with (Baghdad Today) that “the deficit financing law has become legal and enforceable, and it is temporary until the end of this year,” indicating that “the delegation that will go to Baghdad will discuss the budget for next year.”
He added that “the most important thing at the present time is to guarantee the Kurdistan region’s share in the 2021 budget, and the comprehensive agreement, and to approve a law that is not subject to the whims of political blocs, and we have received positive assurances from the federal government and political blocs in this regard.”
Parliament reduced the value of borrowing – according to the law sent by the government – from 41 trillion dinars (34 billion dollars) to 12 trillion dinars, after deleting expenditures that it considered unnecessary in light of the financial crisis, according to the text of the law voted on in Parliament.
According to the text of the law voted by Parliament, estimates of the necessary expenditures for the remainder of the current year 2020 amounted to 22.5 trillion Iraqi dinars ($ 18.7 billion).
This is the second time that the government has asked Parliament to grant it the authorization to borrow, with the aim of securing operating expenses, on top of which are the salaries of employees.
Parliament had approved on June 24 a bill that allowed the government to borrow 15 trillion dinars (12.5 billion dollars) internally, and 5 billion dollars abroad to cover the fiscal deficit.
The country is experiencing a suffocating financial crisis due to the decline in oil prices due to the Corona pandemic crisis, which has paralyzed large sectors of the world’s economies.
Before the Corona crisis, revenues from selling crude amounted to about $ 6 billion per month, but they have almost halved this year.