A government proposal to compensate the poor classes

[yota691]

A government proposal to compensate the poor classes

Monday 28th December 2020 8

 

 Baghdad: Haider al-Rubaie 

 

The financial advisor in the cabinet, Dr. Mazhar Muhammad Salih, suggested setting up a strict government program that compensates those affected by the change in the exchange rate from the poor, vulnerable and low-income classes. A lowering of the exchange rate may provide partial protection for the domestic product.

The procedures for changing the exchange rate of the dinar against the dollar, which the Central Bank implemented recently, met with mixed reactions. At the time, that step led to a clear rise in prices and contributed to reducing the purchasing value of employees ’salaries. Specialists in economic affairs show that the“ central procedure ” It will contribute to improving the domestic product from various sectors, such as the industrial, agricultural, and service sectors, because it will increase the activity of these sectors, while “many members of Parliament rejected that approach, describing measures to address the economic crisis as" prosthetic solutions. "

 

Economic explanation

During his speech to Al-Sabah, Saleh attributed the trend towards adjusting the exchange rate to several factors mainly related to the problems of the deficit in the current account of the balance of payments, in which the deficit was estimated during the current year 2020 with a limit of negative 20 percent, which was reflected bilaterally as a deficit in the state’s general budget (bilateral deficit This indicates the necessity of adjusting the exchange rate, indicating that otherwise, "the foreign reserves of the Central Bank of Iraq will be eroded."

And draws the financial advisor in the prime minister, that «the exchange rate represents the external value of money in Iraq or in any other country in the world, and the exchange system in our country tends to adopt the so-called fixed exchange rate or pegged to foreign currency, specifically the dollar, because of the cash flows Foreigners to Iraq (especially oil revenues as a sovereign resource) are mostly in currency

 Dollar ».

 

Inflation financing

Salih believes that «the trends of the general budget 2021 and its pursuit of a reduction in the exchange rate, and in a rentier economy such as Iraq, are directly related to financing the state’s general budget and represent, in essence, an inflationary financing method (financing with inflation), that is, buying cheap dinars issued by the Central Bank with government oil revenues from Dollars or high-value foreign currency to fill part of the deficit in the general budget equal to the reduction percentage.

 

Shrinkage in demand

The financial advisor asserts that, despite the fact that the local market itself is not affected (directly) by the reduction, it will transfer the price or value burden to the final consumer or buyer directly as a transitional inflation tax (except for temporary problems related to contracts between dealers, term sales, debts and obligations. Reciprocal).

He explained, "This does not mean that there has been no contraction in the demand for goods and services in the internal market, especially the demand for highly flexible goods, including luxury or leisure goods." As imports dumped in the internal market, which leads to a gradual improvement in the current account of the Iraqi balance of payments.

Salih explains, "The people who are most affected by the reduction in the exchange rate are those with limited income and the poor and vulnerable groups in society, as the purchasing power of their incomes in the local currency will decrease by a decrease in the external value of money, due to the high prices, especially the necessary imports, which requires a strict government program that compensates the affected From the poor, vulnerable and low-income classes, whether by amending social welfare allocations or by spreading a special national program that addresses cases of monetary income contraction or the lack of real income opportunities itself for social classes due to poverty or unemployment, indicating that this procedure represents one of the social justice rules that the financial policy follows from During the implementation of the general budget for attainment Its goals ».

[yota691]

Governmental Adviser: The recessionary conditions in Iraq have led to dangerous economic manifestations

 

The appearance of Muhammad Saleh

money and business Economy News - Baghdad The financial advisor to the Prime Minister, Mazhar Muhammad Salih, announced the contractionary conditions in Iraq, which have led to dangerous economic manifestations. Saleh said, in an article published by the Iraqi Economists Network, seen by Economy News, "The contractionary financial conditions in Iraq have led to dangerous economic manifestations, as the contraction of demand or government spending in the year 2020 led to an increase in the national income gap and a decrease in growth by about 11% from its rates, accompanied by it." An increase in unemployment levels of no less than 25% of the workforce, as well as an increase in poverty rates among the population that exceeded 30% of the country's families. He added that the advocates of financial thought believe that the manifestations of deflation and financial stumbling and resorting to semi-compulsory austerity will continue to be a cause for the increase in debt and deficit in an expansionary financial rescue package required by the subsequent financial years, and this is what the Iraqi public finances faced in the years 2020-2021, as the draft budget for 2021 indicates that the total The planned deficit will rise to nearly 71 trillion dinars, and the aforementioned deficit will constitute not less than 42% of total total spending and a percentage of not less than 28% of the current GDP.

Number of observations 324   Date added 01/01/2021

[yota691]

Financial Advisor to Kazemi: The contraction of demand in 2020 has led to a widening of the national income gap

•  Time: 01/02/2021 15:20:12
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•  Read: 1,521 times

  

 

(Baghdad: Al Furat News) The appearance of Muhammad Salih, the financial advisor to the Prime Minister, Mustafa Al-Kazemi, confirmed that the contractionary financial conditions in Iraq have led to dangerous economic manifestations.

In an article published by the Iraqi Economists Network followed by {Al Furat News}, Saleh said, "The contractionary financial conditions in Iraq have led to dangerous economic manifestations," adding that "the contraction of demand or government spending in the year 2020 led to an increase in the national income gap, and a decrease in growth by about 11% off his rates. "

He added, "The contraction was accompanied by an increase in unemployment levels that were not less than 25% of the Iraqi workforce, as well as an increase in poverty rates among the population that exceeded 30% of the country's families."

He explained that "the advocates of financial thought believe that the manifestations of deflation, financial distress, and the resort to quasi-compulsory austerity will continue to cause the increase in debt and deficit in an expansionary financial rescue package required by subsequent financial years."

He pointed out that "this is what the Iraqi public finances faced in the years 2020-2021, as the draft federal budget for the year 2021 indicates that the total deficit planned in it will rise to nearly 71 trillion dinars, and the aforementioned deficit will constitute no less than 42% of total spending therein." And a percentage of not less than 28% of the current GDP.

[yota691]

Al-Kazemi Financial Adviser: Recessionary conditions led to dangerous economic manifestations

• SAT, 02-01-2021, PM 2:36
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• KARRAR AL-ASADI
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• 244

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Mazhar Muhammad Salih, the financial advisor to the Prime Minister, Mustafa Al-Kazemi, confirmed that the contractionary financial conditions in Iraq had led to dangerous economic manifestations, while he explained the details of what accompanied the contraction during 2020.

In an article published by the Iraqi Economists Network, Saleh said, "The contractionary financial conditions in Iraq have led to dangerous economic manifestations, as the contraction of demand or government spending in the year 2020 has led to a widening of the national income gap, and a drop in growth of about 11% of its rates."

He added that the recession "was accompanied by an increase in unemployment levels that were not less than 25% of the Iraqi workforce, as well as an increase in poverty rates among the population that exceeded 30% of the country's families."

And he indicated, "The advocates of financial thought believe that the manifestations of deflation, financial faltering, and the resort to austerity (almost compulsory) will continue to cause the increase in debt and deficit in an expansionary financial rescue package required by subsequent financial years."

He pointed out that "this is what the Iraqi public finances faced in the years 2020-2021, as the draft federal budget for the year 2021 indicates that the total deficit planned in it will rise to nearly 71 trillion dinars, and the aforementioned deficit will constitute no less than 42% of total spending therein." And a percentage of not less than 28% of the current GDP.

[horsesoldier]

These people create and move through one calamity after another with nary a pause or breath. Crisis is their drug.

[jeepguy]

reads as though they  ( g.o.i.  and central bank ) are at the pivot point of drying up the dinar , raise the value of good and reduce the value of dinar ,  i guess in their thinking this would flush out the " chucky money that the poor people are hanging onto incase of emergency , or the currency is so cheap why bother with it ( from a poorer perspective view ).

 

[yota691]

Advisor to Al-Kazemi: The poverty rate in the country has reached 30%

Economie

2021-01-03 | 13:00

 

 

3,803 Views

 

The Prime Minister’s Adviser for Financial Affairs, Mazhar Muhammad Salih, predicted, on Sunday, that oil prices will continue to rise to levels reaching $ 65 per barrel, while revealing that the poverty rate in the country has reached 30% of the total population.

In an interview carried by the Iraqi News Agency, Saleh said, "The deficit can be addressed in many paragraphs of the current year’s budget, including the increase in oil prices and the pressure of expenditures, and thus it will compensate for the borrowing."

 

Saleh expected that "oil prices will continue to rise to higher levels, reaching $ 65 per barrel, by next summer, and lifting restrictions on transport after the improvement of global conditions, due to the Corona virus."

 

 

He added, "The increase recently approved by OPEC in oil production, which amounts to 500 thousand barrels per day, indicates an increase in global demand for oil and a decrease in oil saturation rates."

 

He pointed out that "the rate of poverty in the country has reached 30% of the total population, including old displaced and unemployed, in addition to that there are more than two million families, added as a result of the Corona pandemic that swept the world."