Financial Management Law
13/1/2019 In the name of the people Presidency On the basis of what was approved by the House of Representatives and approved by the President of the Republic based on the provisions of Article (1) of Article (61) and Article (III) of Article (73) of the Constitution The following law was issued: No. (2019)
Financial Management Law
Chapter I Definitions Article (1) The following terms for the purposes of this Law shall have the following meanings: The President of the Council of Representatives, the President of the Council of Ministers, the President of the Supreme Judicial Council, the Minister, the head of the non-affiliated body, the Secretary-General of the Council of Ministers, the President of the Territory, the President of the Governorate Council and the Governor of governorates not organized in the Territory. Second: The federal budget: A financial plan that expresses the plans of the state to carry out programs and projects, including planning tables for estimating revenues and estimating expenditures in both current and investment for one fiscal year set out in the federal budget law. Third: The final account of the state (the federal financial statements): The list of the financial position of the country (assets and liabilities) as at 31 December of each year, and the calculation of the result measurement which includes revenues, expenses and other statements for the year ended. IV Current Expenditures: Amounts spent annually within the federal budget except investment expenditure. Fifth: Investment expenditures: The amounts allocated for the purpose of establishing projects and programs or access to advisory services and fixed assets or development and capacity building that are included in the schedules of investment projects prepared by the State departments and approved by the Ministry of Planning adopted within the investment platform for the purpose of increasing production capacity or absorption or prolonging productive life Of the fixed asset. Sixth: Capital expenditure: The amounts allocated for the purchase or development of capital assets that are not included in the investment project and are included in the classification of current expenditures. Seventh Emergency Reserve: The amounts approved within the Federal Budget Law for the purpose of covering the expenses that are not possible, emergency or unexpected, which happen after the legislation of the federal budget law. Eighth budget of the province or the budget of the province: Tables of estimation and estimate the expenditures and revenues of the province and the provincial council and the province is not organized in the territory and is approved by the province and the Council of the province and consolidated within the federal budget after federal discussion and approval of the ministries of finance and planning federal, each according to its competence. Ninth Financial Year: The period during which the Federal Budget Law shall be implemented and shall commence from 1 January and end on 31 December of the same year. Tenth phase of the final accounts: The period after the fiscal year, which is devoted to the settlement of suspended accounts that could not be settled during the previous financial year for the purpose of presenting the financial statements and does not contain transactions of receipt or actual payment and starts on the day (1/1) of the fiscal year following the budget year, / 1) of the same year. Accounting period: The period specified for the registration and settlement of all accounting restrictions for transactions arising from the application of the Federal General Budget Law and start from the date (1/1) of each year and end on (31/1) of the next fiscal year. The Federal Government's bank accounts: One or more bank accounts are opened at the request of the Federal Ministry of Finance at the Central Bank of Iraq to deposit, withdraw, pay or transfer money belonging to the Government of the Republic of Iraq. The Federal Ministry of Finance shall be responsible for it and issue monthly statements thereon. Thirteenth: The financial administration responsible for the accounts of government units centrally financed from the federal budget. The governorate treasury shall have a bank account linked to the Federal Ministry of Finance. Fourteenth system of calculating the unified general treasury: a system managed by the Federal Ministry of Finance to consolidate cash balances in all bank accounts of ministries and non-linked bodies, and self-financed departments set by the Minister of Finance for the purposes of cash management and the Department of Accounting in the Federal Ministry of Finance is responsible for the administration and issuance Monthly reports about him. Fifteen spending units: ministries and entities not associated with the Federal Ministry of the federal government and the administrative bodies of the federal and local government and the entities that allocate funds within the federal budget authorized to spend and collect revenue charged with collection according to the law. Sixteen self-financed administrations: They include state-owned public corporations, public bodies and directorates that enjoy moral personality and financial and administrative independence and which rely on their own resources to finance their budgets. Oil and gas revenues: Revenues resulting from the sale of crude oil and its derivatives and gas locally and externally and to the full budget. Chapter II Budget preparation Article 2 The federal public budget shall consist of: First, the budget of the government sector financed centrally and consists of budgets of all spending units in both current and investment, which is determined by the Federal Budget Law. Second: Expenditure of investment projects for self-financed departments. Thirdly, the expenses and revenues of the Region and the provincial and governorate councils not organized in a region. Article 3 First, the Minister of Finance starting from the month of March of each year a report on the priorities of fiscal policy, strategy and the government program and the central recommendations of the trends of the federal budget of the State in terms of elements and size and distribution functionally and sectorally in addition to the foreign exchange report proposed by the Central Bank for a period of (3) Three years or more and submit it to the Economic Affairs Committee of the Council of Ministers at the beginning of May of the same year. The report includes the following: A) Macroeconomic forecasts for a period of three (3) years or more and their assumptions, including oil prices and production. (3) three or more years in the government sector whose current and investment expenditures are financed centrally. (C) financial projections for a period of three (3) years or more for public companies carrying out oil or gas operations. Analysis of the foreign trade sector E) The deficit target in the federal budget and other financial indicators for a period of three (3) years or more. And the ceilings of the total expenditures in the federal budget for a period of (3) three years or more. G) Current and investment expenditure ceilings for each ministry or entity not connected to the Ministry for a period of three (3) years or more. Second: The Committee of Economic Affairs, with the assistance of a number of experts from ministries and the private sector, shall discuss the report provided for in item (1) of this article and submit it to the Council of Ministers at the end of May for approval and shall be the basis for preparation of budgets for subsequent years. Article 4 First, the federal budget is based on economic development estimates, the pursuit of macroeconomic stability, economic policy, conformity with the government program, the challenges facing the national economy and the expected risks to ensure the assessment of the financial situation in Iraq and reduce fluctuations in government spending and the efficient completion of revenue collection in the light of moderate forecasts Oil prices, oil production, tax revenues, fees and other revenues. Second, the annual budget shall start from (1/1) and end on (31/12) of the same year and the Federal Ministry of Finance shall prepare a medium term budget for a period of three (3) years, which shall be submitted once and shall commence. For the second and third years, not exceeding (20%) twenty percent. Third, the Ministries of Finance and Planning shall prepare the guidelines in June of each year in light of the objectives of the fiscal policy specified in the report adopted in accordance with the provisions of Article (3) of this law. The main economic parameters based on the National Development Plan, the realistic macroeconomic indicators, the necessary procedures and the timetable To prepare budgets for maximum current and investment expenditures for each unit of expenditure consistent with the report adopted in accordance with Article (3) of this law, and the form of preparing estimates of current expenditures and investment projects provided for Article (5) of this law. Article 5 During the month of July, the spending units shall prepare their budget and balance sheet budgets and send them to the Federal Ministries of Finance and Planning, each according to the jurisdiction, including the following: First, the estimates of their own revenues and estimates of expenditures, both current and investment. Second, the administrative, economic, qualitative, functional and geographical classification tables or any other classification in the preparation of the federal general budget. Thirdly, a copy of the initial report on its financial statements (final accounts) for the fiscal year ended and sent to the Federal Audit Bureau. Article 6 First: The Federal Ministry of Finance shall accept the proposed estimates for the current budget for the following year from the ministries and entities not connected to the Ministry, the Region, the Governorate and the provincial councils not organized in the region and discussed according to a detailed schedule prepared for this purpose during the month of August of each year. Secondly, when discussing budget estimates with the concerned administration, the focus is on the objectives, programs and activities for which these funds are requested to ensure that these estimates are consistent with the maximum limits set forth in the report adopted in accordance with the provisions of Article 3 of this law. Third, the Federal Ministry of Planning is responsible for preparing the detailed bases for the estimation of the costs of investment projects throughout its ages and discussing them with the ministries and entities not connected to the Ministry, the Region, the Governorate and the provincial councils that are not organized in the region, and submit them in final form to the Federal Ministry of Finance for the purpose of consolidating them within the federal budget during the month of August, Of each year. Fourth, the deficit in the planning budget should not exceed (3%) three percent of GDP. Article 7 Ministries and entities not affiliated with the Ministry, the Region, the Governorate and the provincial councils that are not organized in a region shall be committed in preparing the estimates and estimates of the general budget by taking priorities and relative importance in light of the guidelines provided for in Article (3) of Article 4 of this Law. Article 8 The Federal Minister of Finance shall submit to the Economic Affairs Committee at the beginning of September of each year the draft federal budget law to study it and submit recommendations to the Council of Ministers in early October of each year with the following: First, the financial policy document includes the following: A- The objectives and rules of the fiscal policy adopted in the preparation of the Federal Budget Law. (3) for three years or more in terms of oil price estimates, production and other budget financing resources and to the extent appropriate to the prevailing economic and financial conditions in Iraq. C) New policies included in the annual budget and their specific financial implications. D Financial risks facing fiscal policy for the coming period, including analysis of macroeconomic risks arising from changes in oil price and production. List all guarantees issued by the federal government. And the unified budgets of the region and governorates not organized in the province. Second, the draft federal budget law includes the following: A. Cash and in - kind cash estimates B. Estimates of cash and in - kind expenditures (C) Ways of financing disability. (D) The emergency reserve for a financial year not exceeding 5% of the total estimated expenditure in the budget (both current and investment) for the emergency and unexpected situations that occur after the issuance of the Federal Budget Law. Determine the validity of approval for exchange, borrowing, transfers and debt cancellation. And the financial plan on short-term local and foreign loans and guarantees issued by the federal government and the province and the province of irregular in the province and public companies and report any change to the Federal Ministry of Finance and reporting to the province and the province is not organized in the province and public companies to determine the timing of issuance of approval of these loans in the plan Depends on macroeconomic fundamentals and loan policy considerations. G The limits of the annual increase in the total debts of the federal government, the province and the province are not organized in the province and public companies. H. The maximum limit of guarantees to be issued by the federal government, the province and the governorate that are not organized in the province and public companies. I Any other requirements that the Federal Minister of Finance deems necessary. Article 9 The Ministry of Commerce, in coordination with the Central Bank of Iraq, shall prepare a foreign trade plan and discuss it with the ministries and entities not connected to the Ministry and the Region and the Governorate which are not organized in the Region and submit them to the Committee of Economic Affairs in the Council of Ministers for discussion and unification with the draft federal budget law during the month of August Budget Article 10 The Central Bank of Iraq prepares a report on the foreign exchange budget and the national money supply plan and submits it to the Economic Affairs Committee of the Council of Ministers for discussion and unification with the draft federal budget law during the month of August of the budget preparation year. Article 11 The Council of Ministers shall discuss the draft federal budget law and approve it and submit it to the House of Representatives in early November of each year. Article 12 of the House of Representatives: First, the transfer of the sections and chapters of the draft federal budget law sent to him by the Council of Ministers by not more than (5%) five percent of the total allocated to the transferor in coordination with the Council of Ministers and has a reduction of the total ceiling of the budget by not more than the mentioned percentage. Second, the proposal to the Cabinet to increase the total budget ceiling. Third: Adoption of the draft federal budget law during (45) forty five days from Date and receipt thereof by the Council of Ministers. Article 13 In the event of delay of the approval of the federal budget until 31 December of the year preceding the year of preparing the budget, the Minister of Finance shall issue the following articles: First, disbursement by (1/12) (one twelfth) or less of the total actual expenditure of the current expenditure for the previous fiscal year after exclusion of non-recurrent expenses, on a monthly basis until the approval of the federal general budget. Second: Disbursement from the total annual allocation of the continuous investment projects and the allocation of their allocations during the previous and subsequent fiscal year according to the completed or actual processing of the project. Chapter III Budgets of self-financed departments Article 14 (a) Every public administration, body and self-financed directorate shall prepare its proposed budget after the approval of its director and the competent minister, including the current revenues and expenditures, interest, profits, losses, investment expenses, cash liquidity, loans, grants, transfers and potential entitlements and profits and losses, (15) of each year for review, unification and ratification. The Ministry of Finance shall submit a detailed report to the Economic Affairs Committee of the Council of Ministers during the month of October of each year. The Minister of Finance shall take into account the independence of the operations carried out by public administrations. Second, the budget of the self-financed administrations is not included in the budget of the federal government, nor is it included in the budget of any other government body except for its centrally financed investment projects. Thirdly, the self-financed administrations on 15 September will provide estimates of the total short-term loans and soft loans to be raised to the next fiscal year for approval by the Minister of Finance. (B) The self-financed administrations shall report monthly to the Minister of Finance regarding the total amount of loans and short-term loans during the last ten days of the end of each month. C The guarantees provided by the Federal Government in respect of the loans of self-financed administrations shall be in accordance with the law and shall appear in the final accounts of the State. Fourthly, the self-financed administrations shall submit their monthly accounts during the last 10 days from the end of each month to the competent ministry and shall submit their semi-annual accounts to the Federal Minister of Finance by the deadline of 15 July 15th. (B) All self-financed administrations shall submit their final audited accounts to the Federal Minister of Finance by 31 May of the year following the final financial year. These shall include the final accounts, the balance sheet, profits, losses, cash balances and statements of closing accounts, including bills of account, Receivables, especially loans, obligations and contingencies. The final accounts shall be prepared in accordance with the local and international accounting and supervisory rules and standards and shall be monitored by the Federal Financial Control Bureau. Fifthly, the competent minister or the head of the entity not related to the Ministry of the necessary amendments to the budget of the self-financed administrations, the proposal of the Board of Directors or its Director General in the absence of a Board of Directors that these amendments lead to an increase in productivity and improve the financial and economic status for the end of the fiscal year. The Ministry of Finance shall notify the Ministry of Finance of these amendments, if approved by the competent minister or the head of the non-affiliated body, except for the amendments to the self-financed administrations that receive a grant from the State Treasury. Sixth, the provisions of Articles (1), (II), (III), (IV) and (V) of this Article shall apply to governorates not organized in a region as far as their local resources are concerned after their approval by the Governor and the approval of the Provincial Council and the Federal Minister of Finance. the fourth chapter Budget implementation Article 15 First, the federal budget shall be implemented through funding payments and according to the estimate of the Ministry of Finance from the unified general treasury account based on the allocations stipulated in the federal general budget law and according to the mechanism determined by the Ministry of Finance. Second, at the end of February of each year, each unit of expenditure shall submit to the Ministry of Finance a renewed cash budget every three (3) months indicating its need for the funds required to be provided to the Ministry of Finance to provide it to cover the current and investment expenses of the departments. Thirdly, the Minister of Finance may determine the spending ceilings in the light of available funds. Article 16 First, any ministry, department or formation may not exceed its allocations in the Federal Budget Law on any of the disbursements and for any reason. Second, any government formations may not enter into commitments that lead to exceeding the allocations allocated to them in the Federal Budget Law. Article 17 First: A commitment may be entered into only after making sure that the necessary financial allocation is available. (B) The Chamber shall make a commitment to pay the amounts due by its date, and may not be deferred to the following year. Second, the spending unit must obtain the approval of the Ministry of Finance before entering into a multi-year commitment, which requires the disbursement of amounts from the federal budget for the future fiscal year. Thirdly, the Ministry of Finance shall be the only body authorized to approve the release of cash for the current and capital expenditures of the spending units. Article 18 First: The advance account shall be used in the absence of the fundamental documents for the acceptance of the payment. The advance account may not be used for disbursement for any purpose unless the necessary allocation in the budget is available to cover the condition of the exchange. Second, advances (prepayments) made by the spending unit in a particular financial year must be settled during the same fiscal year, otherwise the settlement of such payments will require an allocation of the subsequent year's budget. Article 19 First: The Ministry of Finance shall give its opinion on draft legislation that includes financial provisions. Second, in the case of a law that requires spending on the budget should be applied from the following year in order to put the necessary allocation. Article 20 First: No disbursement shall be made unless it is based on a disbursement order issued by the Supreme President or by the Head of the Expenditure Unit or by his authorized representative. Second, when actual revenues exceed the estimates in the Federal Budget Law for the fiscal year, the surplus is provided for use in subsequent years to serve future generations Thirdly, the Council of Ministers, upon declaring a state of emergency, should submit to the House of Representatives a draft law to increase spending. Article 21 First: The Council of Ministers may use the contingency reserve to cover unexpected urgent expenses arising after the issuance of the Federal Budget Law and approved by the Council of Ministers on the proposal of the Prime Minister or the Minister of Finance. Second, the Minister of Finance will submit a quarterly report to the Council of Ministers and the House of Representatives on the use of emergency reserve allocations. Article 22 First a. Expense allocations are used from January 1 to December 31 of the fiscal year. Income of centrally financed administrations received up to (31) of the fiscal year shall be recognized as final revenue for the account of the State Treasury for the same year. C. Income of centrally financed administrations received after the end of the fiscal year shall be credited to income for the fiscal year in which they were received. Second, the Minister of Finance may exempt from the provisions of paragraph (c) of item (1) of this Article the income due and not received during the fiscal year in which it was due to be credited to the account of the issuer after recording it with the debtor or the account of the income due and not received in the cases indicated below: A treasury share of public sector profits. Unearned oil revenues from sales during the year. C Real estate sales revenue. D. Any other income which the Minister deems necessary to be covered by this provision. Thirdly, the amounts actually collected during the fiscal year shall be recorded in the accounts of that year. If this is not possible, the settlement shall be added to the accounts within the period of the final accounts, subject to the provisions of item (ii) of this article. Fourthly, the income of the centrally funded departments from the various sources to the general budget, and no part of it may be deducted for any purpose. No amount may be allocated except through the budget and to specific and clear disbursements. Article 23 The appropriations approved in the Federal General Budget may not be disbursed in the non-fiscal year allocated to it and the allocations that have not been paid during the fiscal year allocated to it shall be discharged at the end of that year. Article 24 First, the amounts to be paid for services or works completed in a financial year and which have not been disbursed during that year for substantial reasons determined by the Committee for Economic Affairs other than the reasons for the implementation of the allocations shall be recorded in the accounts of that year in which the payment is actually due. Secondly, the amounts that have been actually disbursed in any fiscal year in the relevant account for that year shall be recorded, if they can not be recorded at the time, the settlement shall be carried out within the final accounts stage for that year. Third, the net salaries that have not been submitted by the beneficiaries shall be returned to the Treasury. A secretariat shall be registered in their names in a special account to be opened in the accounts of the secretariats and the debts deducted from these salaries shall be paid to the entitled parties. Fourth: Subject to the provisions of Article (3) of this Article: (A) Amounts due to be paid are payable in the fiscal year in which the payment is due and the amounts actually disbursed in a financial year are credited to the correct tab in that year's accounts. B. The amount of the order issued shall be recorded and the meritorious persons shall not review it for taking it as an expense in the accounts and as a revenue to calculate the dues. C. If the amount to be disbursed is allocated for one year and it is not repeated, the Minister of Finance may instruct that it be transferred to the expense account due to be disbursed upon review by the concerned parties. Fifthly, the amounts due to be paid for completed projects or work or goods shall be recorded at the expense of the year in which they were due. Sixthly, the monthly and annual financial statements shall disclose the adoption of the accrual basis in the cases where it was approved, and the cash flow statement shall be attached thereto. Article 25 First: The authority to conduct transfers between the doors and sections of the federal general budget shall be the competence of the Minister of Finance. Second, the Minister of Finance may authorize the competent minister or the head of the entity not connected to the Ministry or the Governor or the Chairman of the Governorate Council to transfer from one exchange unit to another disbursement unit of up to 5% of the allocations of the allocated spending unit within the Federal Budget Law Whose allocations have been reduced. Thirdly, it is not permissible to conduct transfers in the following cases: a. Transfer of employee compensation allowances to the rest of the current expenses. Transfer from current expenditure to investment expenditure. C) Transfer from current expenditure to capital expenditure. D) Transfer from allocations of investment projects to allocations of current expenditures. E) Mobilization of allocations of regional development projects between governorates. Fourthly, the Ministry of Finance shall be provided with the orders of transfers carried out on a monthly basis in accordance with the powers vested in them under the provisions of item (ii) of this Article. Article 26 First: Final revenues of the General Treasury shall include all debts and trusts whose owners have not reviewed for a period of ten (10) years from the date of expiry of the financial year for which the need has ceased. The Minister of Finance may return it if it is proved to him that the non-review was a legitimate excuse and shall not be returned after twenty (20) years. Second, the debts of the government which are documented with bonds, agreements or treaties shall be subject to the period prescribed by law. Article 27 First, taxes and fees shall be credited to the State Treasury. Second, wages shall be fixed for the services provided by the State Departments by the Supreme President in accordance with the laws and regulations in force. Thirdly, the State's imports shall be collected and its funds collected from specialized personnel and under the receipt of receipts determined by the Minister of Finance. All imports, including donations and donations, shall be recorded as revenues in the accounts. The collection and administration expenses and all the expenses thereof shall be recorded as a bank in the accounts. In no case shall any part of the expenses be deducted from the total of the imports and the net is recorded as revenue. Its instructions. Fifth, the Ministry of Finance to reduce the amounts resulting from non-transfer of ministries or the province or provinces that are not organized in the region of oil and gas revenues and other annual allocations. Article 28 First: The Minister of Finance shall announce the closing date of the final accounts for the financial year ending not exceeding (31/1) of the following year. Second, the spending units and self-financed departments submit their final accounts to the Federal Financial Control Bureau no later than the end of March of the following year. Third: The Federal Audit Bureau shall issue its report on the final accounts provided for in item (ii) of this Article by the end of May of the following year. Chapter V Write off debts and assets Article 29 First: The Minister of Finance may write off the debts of the centrally financed departments, which prove impossible to collect after exhausting the legal methods within the limits set by the Council of Ministers. Second, the Minister of Finance shall waive the right of the Government to collect or pay the amount due Or delay its payment within the limits set by the Council of Ministers. Thirdly, the Minister of Finance shall inform the Council of Ministers of any amount that has been written off, waived, paid or postponed, and the reasons for cancellation, waiver, delay and installment shall be reported together with the final report and the final annual accounts of the Federal General Budget. The Minister of Finance and the competent minister and the supreme chairman of the entity not affiliated with the Ministry of the power to write off the lost, damaged and damaged assets for any reason, including due to normal use, and determine their authority according to instructions issued by the Prime Minister. Fifth, the Council of Ministers has the power to write off debts and assets that exceed the validity of the Minister of Finance. Sixth: The Council of Ministers, except as provided for in Article (4) of this Article, shall be entitled to write off what is lost or damaged by the State's funds and property as a result of emergency or unusual circumstances after verifying the validity of the procedures taken in its inventory and evaluation. Seventh, the delisting shall not prevent the use of legal methods in securing the rights of the Treasury from the cause of loss or damage Eighth: The Minister of Finance and the Supreme President shall be entitled to write off the debts that can not be legally collected and the damaged, lost and damaged assets owned by the public companies and the self-financed departments thereof. Ninth of the Council of Ministers the power to write off debts and assets belonging to public companies and self-financing departments that exceed the value of the Minister of Finance. X. The financial powers to write off shall be determined by a decision of the Council of Ministers. Regulate the cancellation procedures and accounting treatments with instructions issued by the Minister of Finance. Article 30 Based on the requirements of the public interest of the Supreme President: First, the grant of cash or in kind, or the purchase of materials to give them limits that appear in the law of the federal budget Second: Giving the assets transferred to the ministries and entities not linked to the Ministry limits that are contained in the federal budget law Article 31 First: The Minister of Finance shall determine the forms and forms of documents of arrest, dossier, daily documents and accounting, financial and statistical records pertaining thereto, which shall be deposited in all the state departments centrally financed to control and record financial and accounting transactions and electronic systems in coordination with the relevant authorities. Second, each transaction shall be supported by the documents provided for in item (1) of this Article and shall be reinforced by receipts taken from the concerned parties. Thirdly, the exchange may not be accepted on the basis of personal certificates except with the approval of the Supreme President and the Minister of Finance in the necessary conditions to strengthen the expenses by the limits set out in the instructions of implementation of the Federal Budget Law. Article 32 First, the unit of expenditure or self-financed administrations shall open one current account at a government bank and be authorized by the accounting department of the Ministry of Finance. Second for the unit of expenditure Open one current account in one of the non-governmental banks in Iraq on the recommendation of the Minister of Finance and with the approval of the Economic Affairs Committee in accordance with instructions issued by the Minister of Finance. Thirdly, the Accounting Department of the Ministry of Finance requested the bank to send an account statement regarding any bank account to any spending unit or any self-financed administration. 4. The Accounting Department of the Ministry of Finance shall request the bank to close the bank account of any self-financed spending unit or administration if the bank account is opened in contravention of the provisions of this article. Chapter six Management of oil revenues Article 33 Oil revenues shall include the following: First total total revenues of public companies from sales of domestic and foreign crude oil and crude oil and gas products. Second, all amounts arising from oil and gas contracts executed by the international oil companies. Thirdly, the treasury share of profits of public companies executing oil and gas operations. Article 34 Revenues derived from the sale of crude oil and gas derived from the exported oil and gas revenues of the federal government and the amounts paid for exploration of oil resources and any amounts arising from the investment of funds in the account of oil and gas revenues, the federal budget under an account called account of oil and gas revenues. Article 35 First, all oil and gas revenues shall be deposited in bank accounts that are opened specifically for the oil and gas revenues from the Minister of Finance. Amounts arising from the investment of the surplus shall be deposited from the account of oil and gas revenues in the bank accounts opened specifically for the account of oil and gas revenues. Second, the exchange of the proceeds of oil and gas only to finance allocations to the federal budget or to invest surplus and requires the exchange of account revenues of oil and gas for public companies to compensate the cost of oil and gas operations of the allocations of the federal budget. Thirdly, the discharge from the account of oil and gas revenues shall be signed by the Minister of Finance or two employees, at least two degrees from a Director General authorized by the Minister of Finance and not authorized to authorize others. Fourth, the surplus of the account of oil and gas revenues may be invested in credible foreign financial assets. Fifth: The Minister of Finance: Prepare the investment policy for the excess of the oil and gas revenues account and submit it to the Council of Ministers for approval Review the investment policy at least once a year. C) Excess investment of the account of oil and gas revenues through the Central Bank of Iraq or government banks according to the investment policy. Sixth: The Ministry of Finance shall prepare the financial statements for the calculation of the revenues of oil and gas in accordance with international and national accounting standards and the necessary records. Seventh, the calculation of oil and gas revenues is audited by an internationally recognized auditor. Article 36 First: The Minister of Finance shall submit to the Economic Affairs Committee of the Council of Ministers the following: A detailed report on the calculation of the revenues of oil and gas, including the opening balance and closing balance of the mentioned account, the basic assets and the summary of movements on the activity within three weeks from the end of each month. (B) the results of the quarterly audit on the status of investments before the end of the month following the end of each chapter. C. Report of the Federal Financial Control Bureau on the financial statements for each year, including details of the movement of funds for the account of oil and gas revenues Second: The Economic Affairs Committee shall study the reports provided for in item (1) of this Article and submit them to the Council of Ministers. Thirdly, each of the public companies engaged in activities related to oil and gas shall submit to the Minister of Finance and the Minister of Oil within (1) one month after the end of every three (3) months of the year a report containing quantities and amounts of all production, sale and export of oil and gas, In cash or in kind during this period. The Minister of Finance shall prepare a report of conformity submitted to the Council of Ministers within (1) one month from the date of submission of the reports provided for in item (III) of this Article, showing the results of conformity of reports of public companies with the reports of the revenues of oil and gas for this period. seventh chapter Loans and guarantees Article 37 First, the Minister of Finance may borrow locally or externally short-term loans or issue treasury transfers and financial bonds to cover the deficit in the federal public budget within the limits set in the federal budget law and authorize the Central Bank of Iraq to issue treasury transfers and financial bonds and their management as agent, Any other ministry or non-linked entity may borrow from any source or withdraw from its bank account. Second: The Minister of Finance and with the approval of the Prime Minister to issue guarantees within the maximum limits stipulated in the Federal Budget Law. B. The guarantees provided for in paragraph (a) of this section include guarantees for loans, debts, letters of credit, corresponding guarantees, credit commitments and other emergency credit facilities. Thirdly, the Minister of Finance may charge the beneficiaries of the guarantees determined according to the level of credit risk. The federal budget shall include allocations reserved for the guarantees provided for in paragraph (a) of this item, which require payment. Article 38 First of the province and the province is not organized in the province after the approval of the Minister of Finance access to local loans and the issuance of guarantees within the limits of the debts stipulated in the Federal Budget Law and the limits of debt assessed for each unit according to the allocations approved by the Council of Ministers on the recommendation of the Federal Minister of Finance. Second, the province and the province that are not organized in the region and public companies in (31/8) of each year estimates the total of the loans not recovered and the loans to be obtained in the next fiscal year for review and approval by the Federal Minister of Finance. Thirdly, the Region and the Governorate which are not organized in a Region shall submit a monthly report to the Federal Minister of Finance regarding the unexpired loans and issuing the guarantees of loans issued Article 39 First, the federal government shall set limits on guarantees issued by the province and the province that are not organized in the territory and public companies. Second: The Federal Government shall guarantee the guarantees provided for in Article (1) of this Article. Article 40 The Minister of Finance shall sign loans and security contracts relating to the Federal Government and contract with the Central Bank of Iraq and authorize him to issue financial bonds Article 41 First, the Federal Ministry of Finance shall maintain a record of the debts and guarantees of the Federal Government. Second, the competent authority within the province and the province that is not organized in the region and public companies shall keep the register of debts and local loans granted to them and short-term loans and guarantees issued to the province and the province that are not organized in the province and public companies and provide the updated record on this information at the end of each month to the Ministry of Finance. Article 42 The Federal Minister of Finance shall submit a consolidated report on government debts within 30 days from the date of the end of the fiscal year to the Council of Ministers. Chapter VIII Supervision and auditing Article 43 The Minister of Finance shall be responsible for the accounts relating to all receipts and payments made in all ministries and entities not connected to the Ministry, Territory and the Governorate which are not organized in the territory belonging to the federal general budget and shall monitor their financial and accounting transactions in the manner specified by the Ministry of Finance. Article 44 First a. The financial departments in the ministries and entities not connected to the Ministry and the province and the province are not organized in the province and the provincial council, administratively with their respective bodies and a technician in the Ministry of Finance. The Treasury Department in the Governorate shall be linked to the Federal Ministry of Finance and shall be responsible for the accuracy of its financial and accounting transactions. The following formations shall be attached to the Federal Ministry of Finance exclusively: (1) tax departments. (2) Customs circles. (3) Real estate services. (Iv) Government banks. (5) Free zones. (6) directorates of retirement. (7) State insurance companies. Second, the control and internal audit structures working in the spending units are all administratively and technically associated with the Federal Ministry of Finance. Thirdly, if there is a dispute between the ordering officer and the employee in charge of the exchange, he shall decide on a written order issued by the ordering officer. The control and internal audit bodies shall inform the Federal Audit Bureau of the opinion of the parties within fifteen (15) days from the date of the payment order. Article (45) First: Each document shall contain a certificate confirming the order of exchange and the signature of the employee responsible for the exchange and the auditor. Neither of the three parties may replace the other and act in his capacity. Second, the Exchange Order may not approve its exchange documents unless it is the supreme head of the Department. Third: The Minister of Finance shall determine the accounting standards for ministries and entities not related to the Ministry, Territory and governorates not organized in a region in accordance with internationally and nationally accepted accounting standards. Fourth, the Minister of Finance shall prepare the tables of accounts for the federal budget and the forms of documents, circulate them and publish them among the spending units to work under them. Fifthly, the Minister of Finance shall issue the Government Accounting Manual, for centrally funded departments and the unified accounting system for self-financed administrations. Article 46 First: The government departments shall submit their monthly financial statements to the Ministry of Finance within the first ten days of the following month for the purpose of auditing and unifying them with the rest of the State accounts. The Ministry of Finance shall prepare preliminary financial statements every four months submitted to the Council of Ministers and to the Council of Representatives. Second, the financial statements of the spending units and the final closing statement shall be audited by the Federal Audit Bureau. Thirdly, the Minister of Finance shall submit the Federal Financial Statements by the end of April of the following year to the Federal Audit Bureau in the light of the requirements determined by the Audit Bureau. The Federal Financial Control Bureau shall prepare a report on the Federal Financial Statements submitted to the Federal Minister of Finance on the 15th of June to be sent to the Economic Affairs Committee for examination and submitted to the Council of Ministers for submission to the House of Representatives on 30 th of June for discussion and approval within one month from the date of registration. In the Office of the President of the Council The report shall be published by the Council of Representatives in the Official Gazette Fourth: The federal financial statements are prepared according to the content and classifications of national and international accounting standards including the following: a. Report of the Federal Audit Bureau. B. The opening and closing balance of the consolidated treasury account and a summary of the movement of the account during the financial year. C) Determination of the differences between the revenues received and the actual expenses and the appropriations. Dr.. Report on all federal government loans for the fiscal year and total external and internal debt, including unpaid remittances of the Republic of Iraq, including late payments. Report on expenditure from emergency reserve And a report on guarantees issued by the federal government during the fiscal year. G) A report submitted by the Minister of Finance on all loans and guarantees issued by the Region and the province that are not organized in the province and the governorate council. H. Amounts outstanding for investment contracts Deductions for contracts And the letters of guarantee for which the funds have been allocated and whose goods, services and services have not been received The profits of the international contributions of their types, undistributed and not received To report subsidies, donations, grants and grants M. Disclosure of investment projects and financial achievement ratios distributed sectorally, geographically and administratively. N. Disclosure of investment projects prepared by the Ministry of Planning, showing the percentage of physical (technical) distribution sectorally, geographically and administratively. O Statements of the titles of the advances and trusts. Disclosure of the financial position and disclosure of revenues and expenses. Any statements and schedules required by the financial statements. Chapter IX General and final provisions Article 47 First, all government departments shall adhere to the basic principles and criteria for transparency of the public budget and to disclose the mechanisms for collecting and spending public funds and to provide them with sufficient data, information, documents and reports on their financial and administrative activities (in the past, present and future) in a systematic and timely manner and publish them on their websites. Second, the topics to be published on the website of the Ministry of Finance or other government websites: A report approved by the Council of Ministers under the provisions of Article (3) of this Law. Financial statements and proposed budget approved by the Council of Ministers. C. Budget approved by the House of Representatives. D- The financial policy document stipulated in item (1) of Article (8) of this law. E Detailed estimates of cash and in-kind income and current and investment expenditure per unit of expenditure. And the policy of investment surplus account of oil and gas revenues approved by the Council of Ministers. The detailed monthly report on the calculation of oil and gas revenues. The quarterly audit results from each year of the investment situation for the account of oil and gas revenues. I) Annual financial statements for calculating oil and gas revenues. Report of the Financial Control Bureau. Reports of public companies that carry out oil and gas operations and are provided under the provisions of Article (III) of Article (36) of this law. The reports of settling the oil and gas revenues stipulated in Article (IV) of Article (36) of this law. The government accounting manual and the monthly reports on the implementation of the general federal budget and the preliminary financial statements for each (4) four months stipulated in item (1) of Article (46) of this law. O Updated list of all self-financed administrations, reports and financial statements prepared during the year, final financial statements, and the opinion of the Federal Financial Control Bureau and the budget of the citizen. Article 48 First, the principle of the unity of the general budget shall be applied. Second, all revenues for centrally financed units are transferred exclusively to the federal public treasury. Article 49 Ministries and entities not affiliated with the Ministry, Territory and Governorate that are not organized in the province and the governorate council shall issue statistical tables for the financial statements of their formations, whether centrally or self-financed. Article 50 The Minister of Finance may choose any type of advanced budget to suit the requirements of the stage and provide the necessary means.
Article 51 The Minister of Finance, in coordination with the Minister of Planning, shall issue instructions to facilitate the implementation of the provisions of this Law. Article 52 The Financial Management and Public Debt Law issued under CPA Order No. 95 of 2004 shall be repealed with the exception of Appendix B to the Public Debt Law attached thereto. Article 53 This Law shall be published in the Official Gazette and shall enter into force from the financial year following its promulgation.
Positive reasons For the purpose of regulating the rules and procedures governing the financial and accounting management in the field of planning, preparation, implementation, control and auditing of the federal budget and directing all federal revenues to the public treasury to cover public expenditure and determine the link between the internal control units from the administrative and technical aspects and the mechanisms related to the implementation of budgets and the commitment of each implementing agency and determine the responsibility of the Ministry In addition to setting specific dates for the submission of audit balances and final accounts and adherence to the principles of the budget (transparency of the budget and the comprehensiveness of the budget and the budget unit) Annual budget and non-allocation) in the preparation and implementation of the federal budget and related matters in order to ensure macroeconomic stability and financial stability and strengthen the allocation of budget resources and improve the efficiency and effectiveness of spending and ensure the management of cash and optimize the quality of budget information submitted to the House of Representatives and the public. This law was enacted