Halaboussi: We have feedback on activating the budget and we hope there will be steps in this regard

[6ly410]

 

Iraq's 2019 budget busts IMF deal

READ IN:    العربية

 

Salam Zidane February 7, 2019

 

ARTICLE SUMMARY

The Iraqi parliament randomly amended the government's 2019 draft budget to include provisions that increase spending, a move that contravenes an agreement with the International Monetary Fund and that has led to threats of court challenges.

 

 REUTERS/Maher Nazeh

Iraqi lawmakers are seen during the first session of a new parliament in Baghdad, Iraq, Sept. 3, 2018.

 

Iraqi President Barham Salih approved the controversial 2019 budget on Feb. 4. The budget passed the parliament Jan. 23 after long debates over allocations for the Kurdistan Region and southern provinces and amendments that ignored Iraq's obligations under an agreement with the International Monetary Fund (IMF) mandating austerity measures until 2021. 

The Iraqi parliament approved draft legislation for the 2019 budget amid objections from authorities in the southern provinces. At 133.1 trillion Iraqi dinars ($112.6 billion), the budget, if passed, would be the country's third largest, behind those for 2013 and 2014. With a 27.8% increase in spending, it would appear to blow up the IMF agreement.

Compared to the 2018 budget, the current one estimates oil exports of 3.88 million barrels per day (bpd), a daily decrease of 8,000. It also assumes a $10 per barrel price increase, which based on the current market would be from $46 to $56. Budgeted oil revenue accounts for 88.8% of total revenues.

Meanwhile tax revenues and fees are set at 6.8 trillion dinars ($5.7 billion), compared to last year's 9.2 trillion dinars ($7.7 billion). The decrease in taxes is evidence in and of itself of the government’s non-compliance with the IMF Stand-by Arrangement to reform the economy.

The IMF-required reforms included raising personal and business taxes to increase state revenue and halting increases to the government payroll. Yet, the 2019 budget provides for a 24.7% increase in state employee salaries, for a total of 43.4 trillion dinars ($36.7 billion). In addition, the state's domestic and foreign debt will increase by 30.87%, to 10.7 trillion dinars ($9 billion).

A source at the Ministry of Finance speaking on the condition of anonymity, told Al-Monitor, “The members of parliament did not discuss the budget bill with the Ministry of Finance.” They also did not consult with the Ministry of Planning and simply amended provisions at will. The source added, “The Iraqi government will file an appeal to the Supreme Court to reverse the amendments and articles added by the parliament.”

In Iraq's budget process, the government prepares a draft budget and sends it to the parliament, which is allowed to offer amendments before approving it and sending it back to the government. If the government is unhappy with the legislative changes, it can approch the courts for resolution.

The Kurdistan Regional Government (KRG) should be pleased with the proposed budget, which provides it benefits not allocated since 2013.

Ahmad Hama, a Kurdish representative on the Parliamentary Finance Committee, told Al-Monitor, “The Kurds have a few comments on the 2019 budget, but it is fair to them since it guarantees the salaries of [KRG] employees, increases the region’s share [of expenditures] from 12.67% to 13.93% of the total budget and gives the region $2 billion in investment loans.”

Hama also observed, “The 2019 budget resolves some issues ongoing with Baghdad over the years, announcing a fresh start for ties with Baghdad.

One of those issues involves oil. “The Kurdistan Region produces 480,000 barrels of oil per day,” Hama remarked. “Baghdad’s share [from that] will be 250,000 barrels. Added to that, there are 150,000 barrels used within the region for daily consumption, so the region will benefit from exporting 80,000 barrels.” Kurdistan ships both its share of oil as well as Baghad's to market through a pipeline to Ceyhan, Turkey, and then disburses Baghdad its share of the revenue, as per prior agreement.

The government allocated 1 trillion dinars ($846 million) for the petrodollar project allocating a percentage of oil revenues for oil-producing provinces suffering damage from the industry. The regions suffering the most from production and refining receive a higher share of the amount set aside. For example, Basra are to receive 69.2%, Kirkuk 6.3%, and Wasit 4% in the 2019 budget. The Kurdistan Region was excluded. Local authorities can use the money at their own discretion, such as to buy power, send residents abroad for medical treatment and provide other services.

Southern province representatives were not pleased with the budget. They have criticized the draft budget because it does not allocate enough funding to complete stalled projects or quell popular dissatisfaction that eruped in protests last year over the lack of basic services, including potable water and electricity.

Ahmad al-Salayti, speaker of the Basra governorate council told Al-Monitor, “The 2019 budget confiscated the rights of Basra governorate and gave it less than its constitutional right [to petrodollars]. This is particularly crucial since Iraq’s economy greatly relies on Basra.”

Salayti stated, “The main problem is that the budget bill was not yet distributed to the members of parliament, and it was not published on the parliament’s website either [before the vote].” He added, “When we asked some members of parliament, they said that they did not know what they voted on and that the amendment and addition of articles to the 2019 budget was disorganized and random.”

“This is the first time Iraq has witnessed such chaos in passing the budget, which demonstrates the parliament’s negligence toward the Iraqi people,” Salayti remarked. “Basra governorate will appeal to the Supreme Court regarding the budget [if passed], and it will approach the Iraqi courts.”

The draft budget should be sent to parliament and approved before the start of the new year, but it is usually behind schedule, meaning the government conducts public finance without a budget plan. This unaccountability is a major source of corruption. Transparency International’s Corruption Perceptions Index for 2018 gave Iraq a score of 18 out of 100, with 1 being highly corrupt and 100 very clean. Last year, Iraq did not follow its budget to the letter, only implementing 80% of the budget at the most.

Prime Minister Adel Abdul Mahdi has a background in economics and attained office based in part on an economic reform agenda. Yet, his government is repeating the mistakes of 2012 and 2013 by randomly increasing spending without investing in developing production sectors.

Iraq is currently experiencing crises in health, agriculture, industry, education, and energy production. The rate of health expenditures under the current budget is only 2.4%, while agricultural allowances do not exceed 1% and education 3.6%. To be productive, the budget must be aligned with economic realities, not political goals.

It appear that the budget crisis, which began in October, might last another three months as the government makes plans to appeal to the courts over parliament's random amendments and other changes to the draft budget.
https://www.al-monitor.com/pulse/originals/2019/01/iraq-2019-budget-monetary-fund.html

[new york kevin]

Politics, politics, politics. Doesn't the IMF deals give the IMF options, as condition of funded loans from this lending body, to force Iraq's hand as it relates to Iraq's Corruption PerceptionIndex rating and Economic Reform Adgendas ? Is the IMF going to take its gloves off and get down? At least after Galpin gets the nod to replace Kim as Director of the IMF.

[yota691]

Determination of the implementation date of the 2019 budget

Editorial date: 2019/2/8 12:35 • 572 times read

(Baghdad: Al-Furat News) The Federal Budget Law is scheduled to be published in the Iraqi newspaper "Al-Waqalat" mid-week, and the law will enter into force after its publication.

A source familiar with the Justice Ministry's media said Friday that after the president signed the budget law, a copy of the law was sent on the same day to the Ministry of Justice and then sent to the Directorate of "facts" to work on it for the official publication. 
The source added that the newspaper "facts" Iraq will be published on Monday or Tuesday, there is no doubt that the Federal Budget Law will be published in the newspaper. 
According to the law, any law in the House of Representatives after its ratification by the President of the Republic and published in the fact sheet is in force and if the government does not appeal the law to the Federal Court, it enters into force. 
The President of the Republic Barham Saleh, approved last Monday, the federal budget law for the current year 2019, a deficit of 23 billion dollars.
The parliament voted on January 24 last year on the Federal Budget Law for the fiscal year 2019, which began earlier this year. 
The budget estimates revenue of 106 trillion dinars (88.5 billion dollars), while estimated expenditures 133 trillion dinars (111.5 billion dollars), and the total budget deficit amounted to 27 trillion dinars ($ 23 billion). The estimated
budget revenue account on the basis of 56 dollars to the price of a barrel of oil, with an average export of 3.00088 million barrels Aumia.anthy

[SocalDinar]

IRAQ PULSE

Iraq's 2019 budget busts IMF deal

READ IN:    العربية

 

Salam Zidane February 7, 2019

 

ARTICLE SUMMARY

The Iraqi parliament randomly amended the government's 2019 draft budget to include provisions that increase spending, a move that contravenes an agreement with the International Monetary Fund and that has led to threats of court challenges.

 

Iraqi lawmakers are seen during the first session of a new parliament in Baghdad, Iraq, Sept. 3, 2018.

 

Iraqi President Barham Salih approved the controversial 2019 budget on Feb. 4. The budget passed the parliament Jan. 23 after long debates over allocations for the Kurdistan Region and southern provinces and amendments that ignored Iraq's obligations under an agreement with the International Monetary Fund (IMF) mandating austerity measures until 2021. 

The Iraqi parliament approved draft legislation for the 2019 budget amid objections from authorities in the southern provinces. At 133.1 trillion Iraqi dinars ($112.6 billion), the budget, if passed, would be the country's third largest, behind those for 2013 and 2014. With a 27.8% increase in spending, it would appear to blow up the IMF agreement.

Compared to the 2018 budget, the current one estimates oil exports of 3.88 million barrels per day (bpd), a daily decrease of 8,000. It also assumes a $10 per barrel price increase, which based on the current market would be from $46 to $56. Budgeted oil revenue accounts for 88.8% of total revenues.

Meanwhile tax revenues and fees are set at 6.8 trillion dinars ($5.7 billion), compared to last year's 9.2 trillion dinars ($7.7 billion). The decrease in taxes is evidence in and of itself of the government’s non-compliance with the IMF Stand-by Arrangement to reform the economy.

The IMF-required reforms included raising personal and business taxes to increase state revenue and halting increases to the government payroll. Yet, the 2019 budget provides for a 24.7% increase in state employee salaries, for a total of 43.4 trillion dinars ($36.7 billion). In addition, the state's domestic and foreign debt will increase by 30.87%, to 10.7 trillion dinars ($9 billion).

A source at the Ministry of Finance speaking on the condition of anonymity, told Al-Monitor, “The members of parliament did not discuss the budget bill with the Ministry of Finance.” They also did not consult with the Ministry of Planning and simply amended provisions at will. The source added, “The Iraqi government will file an appeal to the Supreme Court to reverse the amendments and articles added by the parliament.”

In Iraq's budget process, the government prepares a draft budget and sends it to the parliament, which is allowed to offer amendments before approving it and sending it back to the government. If the government is unhappy with the legislative changes, it can approch the courts for resolution.

The Kurdistan Regional Government (KRG) should be pleased with the proposed budget, which provides it benefits not allocated since 2013.

Ahmad Hama, a Kurdish representative on the Parliamentary Finance Committee, told Al-Monitor, “The Kurds have a few comments on the 2019 budget, but it is fair to them since it guarantees the salaries of [KRG] employees, increases the region’s share [of expenditures] from 12.67% to 13.93% of the total budget and gives the region $2 billion in investment loans.”

Hama also observed, “The 2019 budget resolves some issues ongoing with Baghdad over the years, announcing a fresh start for ties with Baghdad.

One of those issues involves oil. “The Kurdistan Region produces 480,000 barrels of oil per day,” Hama remarked. “Baghdad’s share [from that] will be 250,000 barrels. Added to that, there are 150,000 barrels used within the region for daily consumption, so the region will benefit from exporting 80,000 barrels.” Kurdistan ships both its share of oil as well as Baghad's to market through a pipeline to Ceyhan, Turkey, and then disburses Baghdad its share of the revenue, as per prior agreement.

The government allocated 1 trillion dinars ($846 million) for the petrodollar project allocating a percentage of oil revenues for oil-producing provinces suffering damage from the industry. The regions suffering the most from production and refining receive a higher share of the amount set aside. For example, Basra are to receive 69.2%, Kirkuk 6.3%, and Wasit 4% in the 2019 budget. The Kurdistan Region was excluded. Local authorities can use the money at their own discretion, such as to buy power, send residents abroad for medical treatment and provide other services.

Southern province representatives were not pleased with the budget. They have criticized the draft budget because it does not allocate enough funding to complete stalled projects or quell popular dissatisfaction that eruped in protests last year over the lack of basic services, including potable water and electricity.

 

https://www.al-monitor.com/pulse/originals/2019/01/iraq-2019-budget-monetary-fund.html

Ahmad al-Salayti, speaker of the Basra governorate council told Al-Monitor, “The 2019 budget confiscated the rights of Basra governorate and gave it less than its constitutional right [to petrodollars]. This is particularly crucial since Iraq’s economy greatly relies on Basra.”

Salayti stated, “The main problem is that the budget bill was not yet distributed to the members of parliament, and it was not published on the parliament’s website either [before the vote].” He added, “When we asked some members of parliament, they said that they did not know what they voted on and that the amendment and addition of articles to the 2019 budget was disorganized and random.”

“This is the first time Iraq has witnessed such chaos in passing the budget, which demonstrates the parliament’s negligence toward the Iraqi people,” Salayti remarked. “Basra governorate will appeal to the Supreme Court regarding the budget [if passed], and it will approach the Iraqi courts.”

The draft budget should be sent to parliament and approved before the start of the new year, but it is usually behind schedule, meaning the government conducts public finance without a budget plan. This unaccountability is a major source of corruption. Transparency International’s Corruption Perceptions Index for 2018 gave Iraq a score of 18 out of 100, with 1 being highly corrupt and 100 very clean. Last year, Iraq did not follow its budget to the letter, only implementing 80% of the budget at the most.

Prime Minister Adel Abdul Mahdi has a background in economics and attained office based in part on an economic reform agenda. Yet, his government is repeating the mistakes of 2012 and 2013 by randomly increasing spending without investing in developing production sectors.

Iraq is currently experiencing crises in health, agriculture, industry, education, and energy production. The rate of health expenditures under the current budget is only 2.4%, while agricultural allowances do not exceed 1% and education 3.6%. To be productive, the budget must be aligned with economic realities, not political goals.

It appear that the budget crisis, which began in October, might last another three months as the government makes plans to appeal to the courts over parliament's random amendments and other changes to the draft budget.

Read more: http://www.al-monitor.com/pulse/originals/2019/01/iraq-2019-budget-monetary-fund.html#ixzz5ewu3oSTg

Edited February 8, 2019 by SocalDinar

[mr.unlikely]

Good grief Charlie Brown

[yota691]

Finance calls on ministries and local governments to receive a copy of the budget law

Written by: mohanadat:February 09, 2019In: 

Al-Nour News / Baghdad 
The Ministry of Finance on Saturday called on the representatives of ministries and governorates and their councils and non-associated bodies to receive a copy of the revised and approved budget law.

An authorized source from the Office of the Deputy Prime Minister and Minister of Finance said in a statement received "Al-Nour News" a copy of it, "The ministry called on the representatives of ministries and governorates and their councils, and non-associated with the Ministry, to review the Ministry of Finance to receive a copy of the amended budget and ratified.

"In addition to the instructions to implement the law from the budget department, starting from next Monday and the days following the week."

[yota691]

Finance calls for ministries and governorates on the budget

 09/02/2019  181

Finance calls for ministries and governorates on the budget

The Ministry of Finance; on Saturday; ministries and provincial representatives to receive a copy of the budget of 2019 starting next Monday.

"The Ministry of Finance in the Federal Government invites representatives of ministries, governorates and councils, and entities not affiliated with the Ministry, to review the Ministry of Finance to receive a copy of the amended and ratified budget law, and instructions for the implementation of the law from Budget department, starting from next Monday and the days following the week. "

The President of the Republic Barham Saleh; ratified last Monday; the Federal Budget Law for the current year.

[King Bean]

On ‎2‎/‎7‎/‎2019 at 12:17 PM, 6ly410 said:

The Iraqi parliament approved legislation for the 2019 budget. With a 27.8% increase in spending, it would appear to blow up the IMF agreement.

 

               They obviously don't know....

'it's not nice to fool with Mother (IMF) Nature'. 

[bostonangler]

 

[Floridian]

 

Does it still blow up the IMF agreement if the Dinar is "suddenly" worth a lot more?

[pokerplayer]

 

Finance calls on ministries and local governments to receive a copy of the budget law

 

Release date: 2019/2/9 12:54

(Baghdad: Al Furat News) The Ministry of Finance on Saturday, the representatives of ministries and governorates and their councils and non-associated with the Ministry, to receive a copy of the amended budget law and ratified.

A source authorized by the Office of the Deputy Prime Minister and Minister of Finance in a statement received by the agency {Euphrates News}, "The Ministry called on the representatives of ministries and governorates and their councils, and non-associated with the Ministry, the Ministry of Finance to receive a copy of the amended budget and ratified, Budget department, starting from next Monday and the days following the week. "


http://alforatnews.com/modules/news/article.php?storytopic=37&storyid=187745

 

[haymon]

Yeah, that way they can see just what they can or cannot spend.

 Also cant steal.....

[haymon]

Got balance those books like the rest of us folks.

[pokerplayer]

Here is another article I thought is important

 

pp

 

 

 

Parliamentary Finance reveals the date of publication of the budget law in the Official Gazette

 

{Baghdad: Al-Furat News} Parliamentary Finance revealed the date of publication of the Budget Law 2019 in the Official Gazette.

Committee member Magda Tamimi said in a statement, received the agency {Euphrates News} a copy of it that "the date of publication of the budget law will be in the middle of this week."

"A source in the Ministry of Justice announced that the Federal Budget Law is being published in the Iraqi newspaper Al-Wakala in the middle of this week, and the law will enter into force after its publication."


http://alforatnews.com/modules/news/article.php?storytopic=37&storyid=187788

 

 

 

 

 

 

 

[navira]

It is no coincidence that this law will be published this week..following this is the tax to be implemented on Feb 17. Somewhere after this publication or before the tax implementation,...hopefully a rate increase will show up. Cheers. Thanks for the articles PP

[Donziman]

Don't think the new rate will be in the budget. We go through this

every year with great hope. The whole budget process is a fight from

beginning to end. If the contenders had to deal with a rate increase at

the same time it would never get done.  imho of course ...

[nannab]

Great articles Pokerplayer 

 

 

Sadly they will continue fight because that is all these groups seem to do best.

One self imposed crises after another. 

1 hour ago, Donziman said:

Don't think the new rate will be in the budget. We go through this

every year with great hope. The whole budget process is a fight from

beginning to end. If the contenders had to deal with a rate increase at

the same time it would never get done.  imho of course ...

 

[jeepguy]

Good post poker player ! 

[yota691]

Finance: Stop the appointments of the 2019 budget is not true at all

 

money and business Economy News _ Baghdad Minister of Finance, Deputy Prime Minister for Economic Affairs and Minister of Finance, Fouad Hussein, on Sunday, the suspension of appointments in the budget in 2019.  The Information Office of the Minister of Finance Fouad Hussein, in a statement received by "Economy News", "Some websites and the media, That the Ministry of Finance issued instructions to stop appointments within the State budget for the year 2019.  He added that "this news is not true at all and has directed the Ministry of all ministries, bodies and provinces and their councils to receive instructions to implement the budget began on Monday 11-2-2019 and the final version of the budget law."  The minister, according to the statement, "all ministries, bodies and provinces and their councils to abide by what is stated in the text of the law and instructions for the implementation of the budget in terms of the launch of grades and appointments." Views 19   Date Added 10/02/2019

[yota691]

09-02-2019 07:08 PM

Tamimi: Budget law will be published during the next two days in the facts

 

 

 

BAGHDAD (Reuters) - 
A member of parliament's finance committee Majida al-Tamimi announced on Saturday the ministry's intention to publish the budget law in the official newspaper of the next two days, pointing out that the law will be effective from the date of its publication in the facts. 
Tamimi said in a statement received by the 'news'' the law of the federal budget will be published in the newspaper (facts) Iraqi mid-week ', indicating that' the law will enter into force after the publication.

[yota691]

10-02-2019 10:57 AM

Finance: Stop the appointments of the 2019 budget is not true at all

 

 

 

 

Baghdad / News

Minister of Finance, Deputy Prime Minister for Economic Affairs and Minister of Finance, Fuad Hussein, on Sunday denied the suspension of appointments in the budget of 2019 .

The media office of the Minister of Finance Fouad Hussein, in a statement received by 'news', that 'some websites and the media reported that the Ministry of Finance issued instructions to stop appointments within the state budget for the year 2019. '

He added that 'this news is not true at all and has directed the Ministry of all ministries, bodies and provinces and their councils to receive instructions to implement the budget began on Monday 11-2-2019 and the final version of the budget law '.

The minister, in accordance with the statement 'all ministries, bodies and provinces and their councils to abide by what is stated in the text of the law and instructions for the implementation of the budget in terms of the launch of grades and appointments .

[yota691]

Parliamentary Finance reveals the date of publication of the budget law in the Official Gazette

Editorial Date: 2019/2/9 19:21 • 1260 times read

{Baghdad: Al-Furat News} Parliamentary Finance revealed the date of publication of the Budget Law 2019 in the Official Gazette.

Committee member Magda Tamimi said in a statement, received the agency {Euphrates News} a copy of it that "the date of publication of the budget law will be in the middle of this week." 
"A source in the Ministry of Justice announced that the Federal Budget Law is being published in the Iraqi newspaper Al-Wakala in the middle of this week, and the law will enter into force after its publication."

[yota691]

The entry into force of the 2019 budget after its publication in the Iraqi facts

 

money and business Economy News _ Baghdad  The Ministry of Justice announced on Monday the issuance of the new issue of the Iraqi Gazette No. (4529) on the Federal Budget Law No. 1 of 2019 approved by the House of Representatives and approved by the President of the Republic. The Director General of the Iraqi Facts Department Kamel Amin Hashim said in a statement received by "Economy News" that the budget law included the transfer of funds from some ministries to the liberated provinces and the province of Basra and detailed sentences with regard to spending, investment and loans. The law included the request of the Council of Ministers to install all contractors and lecturers In the state institutions, including the employees of the self-financed contracts in the Ministry of Electricity, as well as the continued granting of the five-year leave.  He added that the number also included the law banning the importation of food products, as well as agricultural products that have a similar local product, according to the agricultural calendar. The Iraqi fact sheet included the details of the budget and its adjustments for the current year 2019. Views 50   Date Added 11/02/2019

[yota691]

Iraq: Publication of the budget law, including a recommendation to install contractors and lecturers

A photocopy of the Iraqi newspaper Al-Iraqiya today

 11 February 2019 12:25 PM

The Iraqi Justice Ministry announced on Monday the issuance of the new issue of the Iraqi fact sheet No. (4529) of the Federal Budget Law No. 1 of 2019 and approved by the House of Representatives and approved by the President of the Republic .

The Director General of the Iraqi Facts Department, Kamel Amin Hashim, said in a statement that the budget law included the transfer of funds from some ministries to the liberated provinces and the province of Basra and detailed tables on spending, investment and loans.

The law included the request of the Council of Ministers to install all contractors and lecturers in state institutions and by foot, including employees of self-financed contracts in the Ministry of Electricity, as well as continuing to grant staff five-year leave and the introduction of grades for the popular mobilization and tribal mobilization .

The Director General added that the number also includes the law to ban the importation of food products, as well as agricultural products that have a similar local product according to the agricultural calendar .

It is worth mentioning that the Iraqi fact sheet included the details of the budget and its classification for the current year 2019.

[yota691]

Publishing the financial budget of Iraq in the official facts

 Twilight News    
 7 hours ago

The Ministry of Justice announced on Monday the issuance of the new issue of the Iraqi fact sheet No. (4529) of the Federal Budget Law No. 1 of 2019, which was approved by the House of Representatives and approved by the President of the Republic.

The Director General of the Iraqi Facts Department Kamel Amin Hashim said in a statement today that the budget law included the transfer of money from some ministries to the liberated provinces and the province of Basra and detailed sentences in terms of spending, investment and loans. The law included the request of the Council of Ministers to install contractors and lecturers in all state institutions only Including employees of self-financed contracts at the Ministry of Electricity, as well as continuing to grant staff five-year leave and the introduction of grades for the popular mobilization and tribal mobilization.

 He added that the number also included the law banning the importation of food products, as well as agricultural products that have a similar local product, according to the agricultural calendar.

The Iraqi fact sheet included the details of the budget and its adjustments for the current year 2019.

Keywords: