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Publishes a preliminary version of the 2021 budget: a change in the exchange rate and its revenues more than 91 trillion


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The Ministry of Finance issues a statement regarding the leakage of the draft general budget law for the next year

Thursday, 17 December 2020 6:44 PM
 
The Ministry of Finance issues a statement regarding the leakage of the draft general budget law for the next year
 

Baghdad / National News Center -

Today, December 17, 2020, the Ministry of Finance expressed its resentment and deep regret over the unauthorized publication of the draft budget for 2021.

"Preparing the budget is a complex technical process that includes many ministries, government institutions and international agencies concerned with the budget over a long period of time, and it cannot be fully understood without referring to the data, policies and strategies that are based on it, including it," the ministry said in a statement received by the agency "National News Center." Government White Paper ”.

She added, "Releasing it prematurely to the media is an irresponsible act to a large extent, and this may precede the possibility of ministers in commenting impartially on the draft budget and amending it in a special budget session scheduled to be held next Saturday."

And the ministry called on "everyone not to pay attention to the exciting statements related to the budget that may arise during the next two days."

"The cabinet will discuss the budget in detail, which is the appropriate place to present its recommendations regarding it," the ministry said in the statement. Then, after approval, the budget is sent by the Council of Ministers, to the House of Representatives. This is the correct approach and framework for discussion and deliberation regarding the budget, not social media, which may be full of inaccurate news.

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This is how I see it.   If a have 5 million dinars stashed at home and I see in the news, radio, newspapers that the CBI is planning to devalue the dinar from 1190 to 1450, I will looking li

Yeah this is all a setup to scare the citizens into bringing ALL their dinar into the banks before a 25-30% devaluation period!! It’s actually pretty smart to do it this way even though it screws the

I have come to the conclusion that everyone who runs the country of Iraq, including the independent Central Bank, are a bunch of booger eating Morons. The dollar has hit its lowest price point in two

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Sumaisem for "Al Ahd News": The draft budget includes the high price of the dollar and the removal of gasoline subsidies

https://alahadnews.net/144481/خاص-بوكالة-العهد-نيوز/

f41e43e4dadaad6bbd18f747c6aa496a?s=26&r=Author: ahad6 On 12/17/2020 - 1:33 PM 258

The economic expert, Salam Sumaisem, announced that the budget bill presented by the government to the House of Representatives raised the price of the dollar and removed gasoline subsidies.

She said, "Al Ahd News", "The price of the dollar approved in the budget is 1445 dinars for one hundred US dollars, and the subsidy for gasoline is lifted."

And she added, "The Iraqi citizen is the one who will bear the price of the drop of the Iraqi dinar against the dollar

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Yeah this is all a setup to scare the citizens into bringing ALL their dinar into the banks before a 25-30% devaluation period!! It’s actually pretty smart to do it this way even though it screws the citizens. The CBI has never been able to get all the mattress money into the banks only very little in the past. So this will absolutely help them reduce all the dinar on the streets right before an RV. I believe we are close and between now and say January 5th, 2021 we could very well finally see this RV IMO!! Fingers crossed folks let’s hope this is it!!

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"Leak" annoys finance ... and a warning of "exciting" statements

1601999612626.jpg17th December 2020
The Iraqi Ministry of Finance expressed, on Thursday, its "deep resentment and regret" for the unauthorized publication of the draft budget for 2021.

The ministry said in a statement received by Shafaq News, that “budget preparation is a complex technical process that includes many ministries, government institutions and international agencies concerned with the budget over a long period of time and cannot be fully understood without referring to the data, policies and strategies on which it is based, including the white government paper."

She added that "launching it to the media prematurely is an irresponsible act to a large extent, and this may precede the ability of ministers to comment impartially on the draft budget and amend it in a special budget session scheduled to be held next Saturday." The ministry requested "not to pay attention to the exciting statements related to the budget that may arise during the next two days."

She added, "The Council of Ministers will discuss the budget in detail, and it is the appropriate place to present its recommendations regarding it. Then the budget will be sent after its approval by the Council of Ministers, to the House of Representatives," adding that "This is the correct approach and framework for discussion and deliberation regarding the budget, not social media, which may be Full of inaccurate news."

Shafaq News Agency published, earlier in the day, the draft budget law, which included the exchange rate of the Iraqi dinar at 145 thousand dinars against 100 dollars After that, the Kifah Stock Exchange recorded 136,000 dinars, compared to 100 dollars.

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Finance issues a statement regarding the leakage of the 2021 budget bill  LINK

 
 
 
 
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A call to rationalize expenditures and eliminate multiple salaries

 

 

 Baghdad: Haider al-Rubaie
 


Economic expert Dr. Salam Sumaisem suggested a number of points aimed at confronting the deficit in the 2021 budget, estimated at about 35 trillion dinars, putting at the forefront of those points, rationalizing some public expenditures, and eliminating multiple salaries, at a time when the Ministry of Planning announced that «a price has been set A barrel of oil is worth 42 dollars in the budget next year 2021 ».
Sumaisem said in a statement to “Al-Sabah”, “The deficit in the budget for next year should be financed through several basic steps, and before any economic measures. Public expenditures must first be rationalized, some of which can be described as“ wasteful ”, and the loss of many resources as a result of that. The absence of oversight over these aspects of exchange

 Money ».
The economic expert believes, "It is difficult to finance the budget deficit without eliminating the multiplicity of salaries, as well as the salaries of the aliens, as these steps will greatly reduce the budget deficit."
Sumaisem called on «the country’s economic policy makers to work on rationalizing public spending and maximizing revenues, by taking into account not wasting many facilities that can increase financial returns, especially border crossings, as well as activating other fees collection processes, which can constitute a real figure in budgets. Country
 Finance ».
In addition, the spokesman for the Ministry of Planning, Abdul Zahra Al-Hindawi, said in a press statement that "the price of a barrel of oil has been set at 42 dollars in the budget for next year 2021."
And that «the country's general budget relies on a price lower than expected, to avoid any problems that may face crude oil prices in the future», pointing out that «the current prices of a barrel of crude oil range around $ 50, and there are expectations that they will rise more than this number in the future.» "Determining the price of a barrel of oil at $ 42 in the budget is a precautionary measure for any drop in prices."
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Editing date: 12/17/2020 19:17 • 113 times read
http://www.alliraqnews.com/uploads/news/image/medium/story_img_5fdb84b411267.jpg
[Baghdad-Where]
The Parliamentary Finance Committee confirmed, on Thursday, that the federal budget bill for 2021 will not be passed as it affects the salaries of employees.
A member of the committee, Abdul Hadi Al-Saadawi, said, "The position of the House of Representatives and the Parliamentary Finance Committee is steadfast not to prejudice the salaries of employees, as it is a red line," noting that "the budget cannot be passed in its current form and there are amendments that will be made to it."

He added that "the budget will not be passed and it contains items affecting the salaries of employees," indicating that "the budget that was leaked to the media is not final and with great mistakes made by the government."

He continued, "The budget is in the process of discussion within the Council of Ministers, and a number of amendments will be made upon it."

The Parliamentary Finance Committee revealed, today, Thursday, an imaginary deficit in the draft federal budget law for 2021, which amounted to more than 100 trillion Iraqi dinars.
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Reductions in the allocations of state employees in the leaked 2021 draft budget

17122020221420539315Image1.jpg

 

2 hours ago

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Digital Media NRT

The initial version of the leaked draft of the draft federal budget bill for the year 2021, obtained by Digital Media NTT, on Thursday, shows that it is not limited to raising the exchange rate of the dollar, as it includes changes in the price of gasoline and a reduction in the allocations of state employees.

According to the leaked version obtained by NRT today (December 17, 2020), the draft law included setting the exchange rate of the dollar on the basis of 1450, equivalent to 145 thousand per 100 dollars, and restricting all actually realized revenues as final revenues to the state treasury account .

The project also included reducing all allocations granted to employees of all government departments financed centrally and independently, according to the percentages set against each of them and granted to them according to laws in force and decisions of the Council of Ministers and came as follows : (Risk allocations 50%, hospitality 20%, exceptional 20%, sustenance 33%, Certificate 50%, flat certificate, 40%, special 60%, university service 60 %. ” The draft also stipulated raising the price of fuel (gasoline) from 450 dinars per liter to 540 dinars per liter .

According to the project, "the number of state employees is 3.25 million, including (682 thousand employees in the Kurdistan region). 41.5 trillion dinars have been allocated for salaries, 6 trillion other wages, 20 trillion for retirement, 9.6 trillion in social security and 4,6 trillion benefits. On debt loans and 6.8 trillion in external loan payments. "

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After the ministry does not deny the parliamentary finance, the leaked party reveals the draft budget
  
{Baghdad: Al Furat News} The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, warned of the repercussions of the approval of the draft federal budget law for 2021 on the national economy in the form of the leaked version by the media.

Al-Saffar said in a televised statement: "Sources in the Ministry of Finance leaked the budget, which was a deliberate act to feel the pulse of the street about it."
He stressed that "the draft budget is unofficial and what is happening now will lead to great inflation," noting that "inflation is borne by the employee and the owners of limited income and real estate owners {rents}."
He stressed, "It is necessary to reduce the volume of expenditures in the budget and not to pass according to the current draft," noting that "there are resources that can be invested more effectively, such as outlets and non-oil imports."
"It is not possible to accept double salaries and impose a tax on those with the same salary," Al-Saffar said.
It is noteworthy that a copy of the draft fiscal budget for 2021, leaked this morning to the media and social networking sites, sparked widespread controversy and turmoil in the foreign currency market, as the exchange rate of the dollar in the local market rose in a frenzy and exceeded 1,300 dinars.
For its part, the Finance Ministry did not deny the wording of the leaked budget draft, which further fueled speculation about its authenticity.
The ministry expressed in a statement {Al Furat News} a copy of it, "its resentment and deep regret for the unauthorized publication of the draft budget for 2021," indicating that "preparing the budget is a complex technical process that includes many ministries, government institutions and international agencies concerned with the budget."
She explained that "launching it to the media prematurely is an irresponsible act to a large extent, and this may precede the possibility of ministers to comment impartially on the draft budget and amend it at a special budget session scheduled to be held next Saturday."
The Ministry of Finance called on everyone not to pay attention to the exciting statements related to the budget that may arise during the next two days, stressing that “discussing the budget in the Council of Ministers and then sending it to the House of Representatives is the correct approach and framework for discussion and deliberation regarding the budget, not the social media, which may be Be full of inaccurate news. "
Ammar Al-Masoudi

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An economist to / Nina /: Whoever puts the dollar exchange rate in the budget does not understand anything in the economy, but puts a time bomb to destroy it

876904-b1e8a317-3238-4f3d-8048-bfe52d719
Baghdad / NINA / Economic expert, Raad Twaij, confirmed that setting the price of the dinar in relation to the dollar and placing it in the general budget is a "dangerous precedent" and presenting the general budget to great risks.

The twig in a statement to the naked national news agency / NINA / that determining the price of the dinar in relation to the dollar and placing it in the general budget is a dangerous precedent. The general budget was presented to dangerous directions and carried with it dangerous shifts in the exchange rate. Usually, an average price was set for a barrel of oil, which was done for many years. "An exchange rate, let us know its significance, and it may be the diligence of one of those involved in drawing the general budget and has no economic basis."

He pointed out that "the balanced exchange rate is determined by the mechanisms of the market, adding that trusting this type of exchange rate is a fantasy, and whoever puts it does not understand anything in the economy, but put a time bomb to destroy the Iraqi economy, and it is not possible to expect exchange for a maximum period of a week as the economic changes are many." The situation is not at a uniform pace, as the price of oil and revenues are subject to external factors, not domestic factors.


And Twig continued, we recommend leaving this measure and withdrawing it, especially since the general budget is in the process of preparation and still needs Parliament approval ./ End 8
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Iraq news now

Economist: What happened today is a “game” whose goal is to withdraw the money supply from the market to achieve a political goal

Posted 4 hours ago
News source / Baghdad today
1608233895_142712.jpg
Baghdad today
News source / Baghdad today

Baghdad today - Baghdad 

The economic expert, Rasim Al-Akidi, spoke today, Thursday, about political levers that caused the dollar to rise against the Iraqi dinar recently.

“The budget is a hypothetical government vision of the financial and economic reality,” said Rasim al-Aqidi, in an interview with (Baghdad Today), indicating that “the recent leaks of the budget in the media were exploited by political and partisan fronts to strike a preemptive strike on the government by withdrawing the dollar that it bought at an official price. From the state from the window of sale of the dollar ”.

Al-Aqidi added that those interfaces “began to sell dollars on the black market and not to importers in an attempt to control the largest possible amount of the Iraqi monetary mass, especially since the government, within the budget leaks, raised the dollar exchange rate to 1450 dinars per dollar, in an attempt to control the exchange file and withdraw Monetary block ”.

And he continued, "They are trying to reduce the government’s space to expand and control the file of the dinar and dollar exchange rate, before it begins its procedures in implementing what is included in the budget, especially raising the dollar exchange rate to 1450 dinars per dollar."

At the same time, the economist considered the possibility of increasing the price of fuel, "a catastrophic development that will lead to a significant increase in prices."

The local markets witnessed, this afternoon, Thursday 12/17/2020, a decrease in the exchange rates of the dollar against the local dinar after a big jump in prices since the early morning hours.

And the impact of the leakage of a preliminary draft of the 2021 budget on the exchange rate of the dollar, as its exchange rate jumped to 138 in some exchanges in Baghdad and a number of other provinces, as it carried the leaked budget text, the government's adoption of a financial plan, in which the exchange rate of the dollar would be 145 thousand For every $ 100.

During the last hour, the dollar’s exchange rate decreased, reaching 132,000 dinars in the Al-Kifah Stock Exchange in Baghdad for every 100 dollars, while in the central and southern governorates, the dollar exchange rates came as follows:

Basra 130 thousand dinars for $ 100

 

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Reductions in the allocations of state employees in the 2021 budget draft

Posted 3 hours ago
News source / NR TV
17122020221420539315Image1-810x510.jpg
NR TV
News source / NR TV

Digital Media NRT
The initial version of the draft of the draft federal budget bill for the year 2021, obtained by Digital Media NTT, on Thursday, shows that it is not limited to raising the exchange rate of the dollar, as it includes changes in the price of gasoline and a reduction in the allocations of state employees.

According to the copy obtained by NRT today (December 17, 2020), the bill included setting the exchange rate of the dollar on the basis of 1450, which is equivalent to 145 thousand per 100 dollars, and restricting all actually realized revenues as final revenues to the state treasury account .

The project also included reducing all allocations granted to employees of all government departments financed centrally and independently, according to the percentages set against each of them and granted to them according to laws in force and decisions of the Council of Ministers and came as follows : (Risk allocations 50%, hospitality 20%, exceptional 20%, sustenance 33%, Certificate 50%, flat certificate, 40%, special 60%, university service 60 %. ) ”. The bill also stipulated raising the price of fuel (gasoline) from 450 dinars per liter to 540 dinars per liter .

According to the project, “the number of state employees is 3.25 million, including (682 thousand employees in the Kurdistan region). 41.5 trillion dinars have been allocated for salaries, 6 trillion other wages, 20 trillion for retirement, 9.6 trillion in social security and 4,6 trillion benefits. On debt loans and 6.8 trillion in external loan payments

 
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Leaked 2021 Iraq draft budget prompts public outcry

 

A leaked budget draft confirmed the Iraqi government’s intention to devalue the Iraqi dinar and slash benefits for public workers in response to a severe economic crisis.

 

https://www.aljazeera.com/economy/2020/12/17/leaked-2021-iraq-draft-budget-prompts-public-outcry

 
17 Dec 2020
 
A leaked draft of Iraq’s state budget sent Iraqis into a panic on Thursday as it confirmed the government’s intentions to devalue the national currency, the Iraqi dinar, and cut salaries to cope with the impacts of a severe economic crisis.

 

Discussions about devaluating the Iraqi dinar, which has been pegged to the dollar for decades, have been going on for weeks as the government worked to finalise the 2021 budget. The draft law, which has to go through a parliament vote first, gives an anticipated exchange rate of 1,450 Iraqi dinars for the dollar — a significant drop from the central bank’s current official rate of approximately 1,182 dinars for $1.

 

As the draft made rounds on social media, the Finance Ministry expressed “resentment and deep regret over the unauthorized publication” of the proposed law, saying public hysteria would impact the neutrality of the legislators. The parliament is to discuss — and introduce possible amendments — to the draft in a session scheduled for Saturday.

Multiple officials said the leaked draft was authentic but stressed it might undergo changes in parliament. Sharp public reactions indicate the challenges the country will face implementing needed economic reforms in an election year, and in particular to the budget-draining public sector. Nationwide parliamentary elections, a year earlier than expected, are due in June.

“Budget preparation is a complex technical process … over a long period of time,” the ministry said. “Releasing it prematurely to the media is a largely irresponsible act.”

Already, the value of the dinar is falling on the street, with exchange houses in Baghdad selling the dollar for 1,300 Iraqi dinars ($1.09).

 

Public discussion over the government’s reform policy — dubbed the “white paper” — focused sharply on ways to bring the wage bill down from 25 percent of the GDP to 12 percent. The draft budget took a step in this direction by looking to cut salary benefits, which sometimes exceeds the base pay of many in Iraq’s bloated public sector. Benefits can include incidentals such as danger pay, higher education degrees and hospitality expenses for high-level officials.

The news prompted an outcry from government workers fearing serious cutbacks with the devaluation compounded with benefit reductions.

“The majority of Iraq’s work force are government employees. We are the middle class, but (the government’s latest) decisions are going to make us the poorest class,” said Ali Kadhim, 50, a teacher. “I am paying off two loans that take up a third of my salary. After these decisions I don’t know how much I am going to earn.”

Several public workers echoed his fears, including physicians, dentists, school teachers and administrators in various ministries.

Reformists in the government consider public wages unsustainableFacing a severe liquidity crisis brought on by spiralling oil prices, the crude-exporting Iraq has had to borrow from the central bank’s dollar reserves to pay the nearly $5bn in monthly fees for public salaries and pensions. Oil revenues, which account for 90 percent of the budget, have brought in an average of $3.5bn since the oil price crash earlier this year.

In an October interview, Finance Minister Ali Allawi said the devaluation was being considered seriously in talks with the International Monetary Fund. The IMF has proposed a rate of 1,600 dinars to the dollar, which the Iraqi government deemed “politically difficult” according to a senior-level official, speaking on condition of anonymity to discuss the IMF talks.

The anticipated rate in the draft of 1,450 dinars ($1.22m) against the dollar “will help cover the financial deficit, but, of course, if they don’t manage to make some supportive steps for poor people, then the impact of inflation will be very severe,” said Mohammed al-Daraji, a legislator in the finance committee.

Parliament must still approve the law, expected to be deeply unpopular. This month protesters in the northern province of Sulimaniya burned down government buildings over delayed salary payments.

But there is little choice, said the senior government official. Without these steps, Iraq’s foreign currency reserves would dip below $20bn by next year, he said. They currently stand at $50bn.

Source : AP
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A great adventure the government is taking against the interest of the Iraqi people .. The collapse is soon!

 
6b3e7fa574f7a7f34bb3561f75a37296?s=26&r=Author: AhadNA1 On 12/17/2020 - 2:59 PM 315

The leader of the State of Law coalition, Saad Al-Muttalbi, indicated that there are two sides with regard to the issue of the high price of the dollar in the Iraqi market.

Al-Muttalabi said in an interview with Al-Ahed News today, Thursday, “There are two aspects in this matter, the first of which is to float the price of the Iraqi dinar and make it available to all through supply and demand, which is a very big adventure that may lead to the collapse of the price of the dinar. The central bank will also announce that there will be an official price and another for the black market. Therefore, we have done nothing but set restrictions and weaken the Iraqi dinar, meaning that the dollar will remain constant in exchange for the decrease in the dinar.

"In the end, this operation is against the interest of the Iraqi people, and instead of strengthening the Iraqi dinar, this is an attempt to weaken," Al-Muttalabi added.

Today, Thursday, the media reported leaks from the next year 2021 budget, which showed the rise in the price of the dollar in it and its registration of 145 thousand dinars

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Economy news

Hoshyar Abdullah holds the government responsible for confusing the market and the price of the currency

Posted 10 hours ago
News source / Independent Press Agency
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Independent Press Agency
News source / Independent Press Agency

Al-Mustaqila .. Member of the Finance Committee, Hoshyar Abdullah, confirmed that the leaked version of the 2021 fiscal budget is unofficial and unapproved, blaming the government for confusing the market, the currency rate and the economy.

Abdullah said in a tweet posted today on his Twitter account: “This leaked version of the 2021 budget is unofficial and not approved,” indicating that “the budget so far is still in the cabinet that has not been discussed, and in the Finance Committee and Parliament we have not officially received any copy of it “.

He pointed out: “These leaks are part of the government's floundering, and it bears it and bears the confusion of the market, the currency and the economy.”

The post Hoshyar Abdullah holds the government responsible for confusing the market and the currency rate appeared first on the Independent Press Agency.

 

 

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59 minutes ago, 6ly410 said:

A great adventure the government is taking against the interest of the Iraqi people .. The collapse is soon!

 
6b3e7fa574f7a7f34bb3561f75a37296?s=26&r=Author: AhadNA1 On 12/17/2020 - 2:59 PM 315

The leader of the State of Law coalition, Saad Al-Muttalbi, indicated that there are two sides with regard to the issue of the high price of the dollar in the Iraqi market.

Al-Muttalabi said in an interview with Al-Ahed News today, Thursday, “There are two aspects in this matter, the first of which is to float the price of the Iraqi dinar and make it available to all through supply and demand, which is a very big adventure that may lead to the collapse of the price of the dinar. The central bank will also announce that there will be an official price and another for the black market. Therefore, we have done nothing but set restrictions and weaken the Iraqi dinar, meaning that the dollar will remain constant in exchange for the decrease in the dinar.

"In the end, this operation is against the interest of the Iraqi people, and instead of strengthening the Iraqi dinar, this is an attempt to weaken," Al-Muttalabi added.

Today, Thursday, the media reported leaks from the next year 2021 budget, which showed the rise in the price of the dollar in it and its registration of 145 thousand dinars

Smoke screen we all hope! Thanks 6ly410

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BAGHDAD, Iraq   A year of economic agony for pandemic-hit and oil-reliant Iraq is drawing to a close, but a draft 2021 budget involving a hefty currency devaluation could bring more pain for citizens.

Officials who prepared the document told AFP their goal was to aim for "survival" solutions after an unprecedented fiscal crisis brought on by the coronavirus pandemic and the collapse in the price of oil.Iraq, which relies on oil sales to finance 90 percent of its budget, projects that its economy has shrunk by 11 percent this year, while poverty doubles to 40 percent of the country's 40 million residents.

A slew of measures included in the 2021 budget draft, to be discussed at an extraordinary weekend cabinet session, are an attempt to offer a remedy. 

The toughest decision at play is an official devaluation of the Iraqi dinar from 1,182 to the US dollar to 1,450, the first such re-calculation in a half-decade.

"We are trying to reduce pressure on the public sector wage bill, which is our single biggest expenditure," an Iraqi official told AFP as the budget was being prepared.

He explained that authorities can make inroads into the deficit -- projected by the IMF at 20 percent of GDP for 2020 -- if they continue paying state employees in dinar, while the government rakes in dollars from oil sales.

"We can spread that money further," he said.

The government is Iraq's biggest employer with around four million public sector workers, plus three million pensioners and one million people on welfare.

News of the devaluation has enraged public sector workers, in a country that lacks a developed manufacturing sector and is heavily reliant on imported goods.  

"Our salaries will be worthless," complained Mohammad, a doctor at a Covid-19 ward in Baghdad.

State employees already saw their October and November salaries significantly delayed, straining their purchasing power -- and their patience.  

"I'm nervous watching the rate go up, and I'm angry at the government," Mohammad told AFP.

Tax, utility price hikes 

Over the last week, the unofficial rate at exchange houses across the country had edged up, with the dinar trading at 1,300 against the dollar from around 1,240.

During a global recession, when other countries are trying to encourage more spending, a devaluation of the dinar could do more harm than good, said economic expert Ali al-Mawlawi.

"Yes, the government is desperate and has no other options. But my worry is that it will hit poor people the hardest by knocking their purchasing power down," he said.

Iraqi officials hinted to AFP there could even be another dramatic devaluation next year with the dinar reaching 1,600 against the dollar, following pressure by the International Monetary Fund.

Adding to the pain, mid-level and senior public servants will take home less dinars next year than they did this year, as their salaries will be subject to a new income tax set at 15 percent. 

The government also plans to boost its electricity tariffs to force citizens to pay more for state-provided power.

Despite such austerity measures, the draft 2021 budget projects spending of 150 trillion dinars -- higher than the 133 trillion budgeted in 2019, one of the government's biggest spending years on record. 

Pressure on spending will be exerted in part by the short-term costs of the government pressing public servants into early retirement, a measure designed to reduce the crippling public sector wage bill over the long-term. 

The government hopes to generate 18 trillion in Iraqi dinars in non-oil revenues in 2021, up from 11 trillion budgeted in 2019.
It also it expects 73 trillion in oil revenues. But that is 20 trillion less than 2019.

The bottom line is therefore another hefty fiscal deficit for the coming year, projected at 58 trillion Iraqi dinars. 

The drop in expected oil earnings is due to the 2021 budget forecast that Iraq will sell each barrel at $42.

That is slightly less than the Energy Information Administration's forecast of $47 for the first quarter of 2021, and much lower than the $56 price tag earmarked in the 2019 budget.

'Unpopular decisions' 

After the unexpected release of the budget plans, parliament's finance committee scheduled an emergency meeting to discuss it. 

"This is unacceptable," committee member Ahmad al-Jabouri told AFP after seeing the draft. 

Political and technical wrangling over the fiscal plans are looming, piling new pressure on Prime Minister Mustafa al-Kadhimi and Finance Minister Ali Allawi.

Both have already faced resistance from parliament on smaller reforms proposed this summer, and with legislative elections due to take place in June the battle could be pivotal.

Political tensions prevented Iraq from passing a 2020 budget at all.

"Undertaking major economic reforms when you have elections just around the corner is never ideal for any government in any country," said Mawlawi.

"It really undermines the willingness of a government to take unpopular decisions."

 

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A new statement from a member of Parliamentary Finance regarding the 2021 budget - urgent

 

394 Policy 2020/12/18 15:39 ht Baghdad Today -

Special A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed today, Friday, that his committee will audit all the numbers contained in the draft federal budget law for the country for the year 2021 as soon as it reaches the parliament. Cougar said in an interview (Baghdad Today), "The large deficit in the budget bill delayed its arrival to the House of Representatives," indicating that "the government knows very well that this large deficit will prevent Parliament from passing it." He added, "The second reason is the failure to resolve the agreement between the central government and the Kurdistan Regional Government in order to translate it into clauses within the draft budget of 2021." He pointed out that "Parliamentary Finance will check all the numbers contained in the draft law, as well as the extent to which justice is achieved in the distribution of wealth, especially since there is a state of dissatisfaction in the southern governorates." And (Baghdad Today) Agency, Thursday (December 17, 2020), obtained a `` preliminary copy '' of the draft federal budget bill for the year 2021, which included setting the dollar exchange rate at 1450, and reducing employee allocations. The bill included setting the exchange rate of the dollar on the basis of 1450, equivalent to 145,000 dollars per 100 dollars, and restricting all actually generated revenues as final revenues for the account of the state treasury. The budget stated that the number of state employees is 3.25 million, including (682 thousand employees in the Kurdistan region), salaries 41.5 trillion dinars, other salaries 6 trillion, retirement 20 trillion, social security 9.6 trillion, interest on debt loans 4,6 Trillions, offshore loan payments: 6.8 trillion. The project included reducing all allocations granted to employees of all government departments financed centrally and independently, according to the percentages specified against each of them and granted to them according to laws in force and decisions of the Council of Ministers and came as follows: (risk allocations 50%, hospitality 20%, exceptional 20% livelihood 33%, certificate 50%, cut, 40%, private 60%, university service 60%). ” The draft also stipulated raising the price of fuel (gasoline) from 450 dinars per liter to 540 dinars per liter. The budget authorized the Minister of Finance to fill the actual deficit in the budget only. The amounts shown in the sources mentioned below: 1- Issuing treasury transfers, 2- Issuing national bonds to the public, 3- Issuing bonds and treasury transfers to government banks, to be debited with the Central Bank of Iraq, 4- Loans from commercial banks, 5- Issuing foreign bonds, 6- Borrowing from international financial institutions, 7- Borrowing with the guarantee of international export guarantee institutions. The budget indicates that all loans, bonds, transfers, and project contracts financed by loans will be exempt from taxes and customs fees for ongoing and new projects, including the loan granted by the World Bank to the Ministry of Finance for the draft public financial management system contract for the years 2016, 2017, 2018 and 2019. The 2021 budget obliged the federal ministries And entities not associated with a ministry and all governorates to cover their needs of local products, including private sector products that have an added value of more than (20%). The draft budget concluded that the Council of Ministers may not issue any decisions that include granting an advance to any ministry or entity not linked to a ministry without having allocations for it in the general budget approved during the fiscal year. The project included the suspension of all cabinet decisions and laws in force that allow the centralized state departments to dispose of the revenues collected through them for the purposes of operating expenditures, and their revenues are transferred as final revenues for the account of the state's public treasury, including the share of the state's public treasury on the profits of public companies and self-financed bodies and departments. The fiscal deficit in the budget reached (58260763114) one thousand dinars (fifty-eight trillion two hundred sixty billion seven hundred and sixty-three million one hundred and fourteen thousand dinars), and in the case of excluding all arrears, indebtedness, and foreign and domestic loans that will finance investment projects amounting to (23229017817) one thousand dinars (three Twenty trillion two hundred twenty-nine billion and seventeen million eight hundred and seventeen thousand dinars). The indebtedness represented by the internal and external debt installments reached (14761959590) one thousand dinars (fourteen trillion seven hundred and sixty-one billion nine hundred and fifty-nine million five hundred and ninety thousand dinars).

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The Parliamentary Finance Committee confirmed that the one who leaked the draft budget of the two thousand and twenty-one is not qualified to protect the interests of Iraq, and the committee said that the sudden rise in the exchange rate of the dollar was deliberate and caused by crises creators, adding that the House of Representatives will respond decisively to such actions that harm the country.

 

The Parliamentary Finance Committee describes the leaked draft of the 2021 budget as a "crisis trigger" and threatens a decisive response in the House of Representatives.

A leak of the draft general budget for the year 2021 made the local market fiery as it grappled with the high jumps of the dollar, which reached one hundred and thirty seven dinars per hundred dollars, and between a liquidity crisis, an interruption of salaries and an economic crisis that hit all joints of life in the country.

 

The Parliamentary Finance Committee described the draft draft as a "fabricator of crises" and was not qualified to protect the country's supreme interests. The committee said that the sudden rise in the exchange rate of the dollar was deliberate and caused by crisis inspectors, adding that the House of Representatives would respond decisively to such actions that harm the country.

Specialists attributed the sudden rise in dollar prices to the leakage of the draft, which included cuts to the financial allocations for employees, some of which reach sixty percent, and the re-work of imposing taxes on services provided by ministries and government institutions, which led to an increase in the level of fear among citizens and their assurance of their march towards the unknown.
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After the ministry does not deny the parliamentary finance, the leaked party reveals the draft budget
  
{Baghdad: Al Furat News} The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, warned of the repercussions of the approval of the draft federal budget law for 2021 on the national economy in the form of the leaked version by the media.

Al-Saffar said in a televised statement: "Sources in the Ministry of Finance leaked the budget, which was a deliberate act to feel the pulse of the street about it."
He stressed that "the draft budget is unofficial and what is happening now will lead to great inflation," noting that "inflation is borne by the employee and the owners of limited income and real estate owners {rents}."
He stressed, "It is necessary to reduce the volume of expenditures in the budget and not to pass according to the current draft," noting that "there are resources that can be invested more effectively, such as outlets and non-oil imports."
"It is not possible to accept double salaries and impose a tax on those with the same salary," Al-Saffar said.
It is noteworthy that a copy of the draft fiscal budget for 2021, leaked this morning to the media and social networking sites, sparked widespread controversy and turmoil in the foreign currency market, as the exchange rate of the dollar in the local market rose in a frenzy and exceeded 1,300 dinars.
For its part, the Finance Ministry did not deny the wording of the leaked budget draft, which further fueled speculation about its authenticity.
In a statement, the Euphrates News, a copy of it, the ministry expressed its "resentment and deep regret at the unauthorized publication of the draft budget for 2021," indicating that "budget preparation is a complex technical process that includes many ministries, government institutions and international agencies concerned with the budget."
She explained that "launching it to the media prematurely is an irresponsible act to a large extent, and this may precede the possibility of ministers to comment impartially on the draft budget and amend it at a special budget session scheduled to be held next Saturday."
The Ministry of Finance called on everyone not to pay attention to the exciting statements related to the budget that may arise during the next two days, stressing that “discussing the budget in the Council of Ministers and then sending it to the House of Representatives is the correct approach and framework for discussion and deliberation regarding the budget, not the social media, which may be Be full of inaccurate news. "
Ammar Al-Masoudi

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