Al-Kazemi’s advisor: The rise in oil prices is a golden opportunity to bridge the budget deficit

06/03/2021 20:51

  • number of readings 33
  • Section : Iraq

Baghdad / Obelisk: Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, said, Thursday, June 3, 2021, that the rise in oil prices is a cash grant and a golden opportunity to bridge the fiscal deficit in the budget.

And between the appearance of Saleh for Obelisk, usually such opportunities in Iraq do not plan for them and go to invest directly, but rather to fill the doors of the budget deficit and it is known that Iraq’s budget is more than 75% operational.

He added that his initial estimates that the rise will cover about 80% of the borrowing mentioned in the 2021 budget, but rather reach 100% as an economy, and the reason is that the efficiency of the exchange in the budget is not 100%, and that the efficiency of the exchange in the Iraqi budget in general, operational and investment does not exceed 85% and that there is no 100% exchange.

He described the current situation as comfortable, and the budget may come out at the end of the year, a surplus, which he described as simple and good, and carried over to the 2022 budget.

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected, on Thursday, that the federal general budget for the fiscal year 2022 will be different from the current year’s budget by two paragraphs.

Mazhar Saleh said, “The draft federal budget for the year 2022 will, in my opinion, differ slightly from the budget for the current year 2021 in two paragraphs. The global economy is a stage (after the Corona pandemic), especially the high degrees of international economic openness, the flourishing of trade and investment exchange between the countries of the world, and the high overall growth rates in the global economy.

He added, “There is a strong link between the escalation of economic growth in the world and the escalating demand for crude oil, the boom in energy markets and the rise in oil prices.”

He continued: “As for the second paragraph, it is that the draft general budget for the coming year will reduce the borrowing space at the lowest point, while the area of ​​investment projects and their allocations will expand significantly and according to development priorities, which will lead to better growth and overall employment in the national economy, especially the high contribution The market is in the movement of the economy due to the high state of certainty that will be available to market makers,” explaining that “this is due to the market’s dependence on the recovery indicators in the government economy.”

And he added: “Despite the foregoing, the issue of submitting the draft federal budget to take its legislative path will remain a primary concern and according to its constitutional timings, subject to the speedy formation of Parliament after the elections of the tenth month. The budget bill prepared by the government is the first law that should be approved in Parliament. New Elect.

He explained, “Otherwise, entering the year 2022, without legislating the general budget law, will make the public finance resort to the application of the effective financial management law, through disbursement of 12/1 of the actual ongoing expenditures in the 2021 budget without new investment projects.”



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