- number of readings 118
- Section : Iraq
Baghdad / Obelisk: Member of the Parliamentary Finance Committee Jamal Kougar said, on Saturday, July 31, 2021, that the financial budget for the current year will be passed safely and without a deficit in the event that global oil prices continue above the level of seventy dollars per barrel.
Cougar said in an interview with the media, which was followed by “The Obelisk” that the extent of the budget deficit directly depends on global oil prices, and the closer this figure is to what is established in the budget, the real deficit will be large and as it is proven speculative and reflected in a negative impact on the economic level, indicating If prices rise to higher numbers, then this will reflect positively on the level of deficit.
Cougar added that global oil prices as long as they continue as they are currently above the level of seventy dollars per barrel, Iraq will be in a safe economic situation, and the 2021 budget will be passed without any deficit.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, had expected earlier that the federal general budget for the fiscal year 2022 would be different from the current year’s budget by two paragraphs.
Mazhar Saleh said that the draft federal general budget for the year 2022, in my opinion, will differ slightly from the budget for the current year 2021 in two paragraphs. The (post-Coronavirus) stage, especially the high degrees of international economic openness, the flourishing of trade and investment exchanges between the countries of the world, and the high overall growth rates in the global economy.
He added that there is a strong link between the escalation of economic growth in the world and the escalating demand for crude oil and 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 next 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 market contribution. In the movement of the economy due to the high level of certainty that will be available to market makers, explaining that this is due to the market’s dependence on the indicators of recovery 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 the main concern and according to its constitutional timings, subject to the speedy formation of Parliament after the elections of the tenth month. elected.
He explained, that other than that, 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, by disbursing 12/1 of the actual ongoing expenditures in the 2021 budget without new investment projects.