The Federal Budget and Change of Course

[DWS112]

The Federal Budget and Change of Course

Monday 17th August 2020

 
Deputies and specialists in economic and financial affairs called for the need to change the course of the federal budget to activate the investment side in it, and while they indicated that investment could be an alternative solution in financing strategic projects in the country, they stressed the importance of creating the appropriate climate for investment to attract companies and capital to the country.

Member of the Parliamentary Services Committee, Representative Hussein Arab, said in a statement to Al-Sabah: “Most of the countries in the world depend on investment to finance their service and strategic projects,” pointing out that “the financial crisis that the country is witnessing at the present time makes it imperative for the government to find alternatives in financing, This comes by proposing the stalled projects whose completion rates are advanced as investment opportunities to complete them. "

 
Investment activation
He added that "the federal budget must change its course because the operational side is the dominant one," stressing the need to activate the investment side in the budget, and to make projects funded through investment.

He pointed out that "creating the appropriate climate for investment requires legislation of laws and the issuance of decisions that would attract investment companies and capital to the country."

For his part, a member of the Finance Committee, Representative Shirwan Mirza, affirmed that "there is a governmental tendency to conduct financial reforms and diversify state resources by reducing dependence on oil and reducing government spending on projects."

 
White paper
Mirza said in a statement to Al-Sabah: "The white government paper includes radical reforms to the economic situation in the country, and aims to diversify financial resources and reduce dependence on oil, as well as set a new path to activate investment in the implementation of strategic and vital projects in the country."

He pointed out that "investment can be an alternative solution to financing stalled projects," indicating that there are stalled projects and others with advanced completion rates that must be completed.

He explained that "there is great cooperation between the legislative and executive authorities in legislating laws and issuing decisions that would reform the general economic situation in the country."

 
Investment companies
In addition, the economist Hazem Hadi said, "The necessity of creating a safe environment for investment by providing incentives to investors." Hadi said in a statement to Al-Sabah: “There is a migration of local capital to neighboring countries due to the lack of guarantee laws and a suitable environment for investment,” pointing out that “most countries of the world relied on investment in rehabilitating and developing their infrastructure and not relying on government funding.” .

He added, "The continued reliance on government funding in implementing projects means that the wheel of development will remain at a standstill," calling for "the need to provide inducements to investment companies to encourage them to work in the Iraqi market."

Attractive environment
The Prime Minister, Mustafa Al-Kazemi, had confirmed earlier during his reception of a delegation representing a number of Iraqi businessmen, the government's endeavor for Iraq to be an attractive environment for investment.

A statement by the Media Office of the Prime Minister stated that Al-Kazemi listened during the meeting to the remarks of businessmen regarding their work and investments in Iraq, the problems and challenges facing them, the obstacles that stand in the way of revitalizing the private sector work inside the country, and ways Overcome them.

He stressed that "the current government is a government of consensus, solidarity, and national understanding to overcome the crisis and cross Iraq to a land of safety, and it is not a government of settling accounts, so that it affects the provision of services to the citizen and achieve what he aspires to." Foremost, the Corona pandemic and its repercussions on the economy.

He called on all parties, trade unions, as well as the private sector and social actors to "join hands and cooperate to face these challenges." 

The Prime Minister pointed out to "the importance of the private sector in Iraq, and the need to strengthen and encourage it to take on its pioneering role in a way that enables it to revitalize the Iraqi economy," noting that

👉 "the government is heading today with force to support the private sector and create appropriate climates to activate it 👈

and contribute to building Country".

Al-Kazemi explained that "the government seeks to make Iraq an attractive environment for investment and investors, and not a repellent environment, indicating that there are extortion operations that the private sector is exposed to, and that the government has deterrent measures to hold accountable and prosecute those who carry out extortion and bargaining operations," stressing that "the doors of the Prime Minister's office are open to Businessmen to file their complaints about any case of extortion they may be exposed to. "

He stressed that "any issue of corruption will be dealt with with all seriousness and the legal prosecution of its owners."

He stressed that "the government is working to liberate the Iraqi economy from mortgaging it with oil, and to pay attention to the sectors of industry, agriculture, tourism, services, investment, transport and others," stressing "the government's seriousness in combating corruption in all parts of the state, especially the border crossings."

Edited August 17, 2020 by DWS112

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