Diversification of revenues addresses economic imbalances

[6ly410]

Diversification of revenues addresses economic imbalances

Saturday 26 March 2022 77

https://alsabaah-iq.translate.goog/62353/تنويع-الايرادات-ي-عالج-الاختلالات-الاقتصادي-ة?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

 Baghdad: Mustafa Al-Hashemi

The budget plays an important role in shaping Iraq’s economic policy, especially if it supports the diversification of income sources from non-oil revenues, as it is indicated that the secret of the success of any project is mainly related to financial financing, and that any success of financial vitality can only be achieved through political and security stability, At a time, the Ministry of Finance adhered to its position regarding adjusting the exchange rate and returning it to what it was by 120,000 dinars per $100, as any exchange rate adjustment needs several years to repair past damages, and a devaluation of the currency will need, as an integral part of the comprehensive reform package, For a number of years before it leads to the desired results.

 

In this regard, Adviser to the Prime Minister for Financial Affairs, Dr. Mazhar Muhammad Salih, said: “The previous budgets were mostly compensatory budgets, that is, distributing salaries instead of free public services and transferring them to private services such as electricity, water and services, and this is a failure in preparing budgets. 

the public".

Saleh added that "the policy of the Ministry of Finance came with positive financial results that worked to modify the Iraqi economy, and that this change should not continue for a long time because this would affect the general members of society."

The advisor praised the economic reforms presented by the white paper that significantly improved the country's situation and the conduct of financial matters, stressing the need for "the adoption of these reforms and amendments on the board of this paper by the specialists."

The advisor presented several proposals that would raise the country’s economy, including maximizing non-oil revenues and financial sustainability to ensure the government’s ability to balance revenues and expenditures, and observing flexibility in the budget preparation process to suit emergency circumstances.

While other specialists suggested “increasing cooperation or merging the Ministry of Planning with the Ministry of Finance to ensure the success of public budgets, address the fragile budget constraint and correct deviations.”

For his part, Finance Minister Ali Allawi confirmed the success of “the Central Bank’s policy in reducing inflation and economic stability,” adding: “However, this stability came at a great cost to the economy, exacerbated by the accumulation and continuation of the practice of public and economic policies since the seventies of the last century, represented in utilizing the revenues of the increasing oil revenues. The country as a tool to amplify the state’s role in the economy and society, through the expansion of the public sector, direct and indirect state control over the economy, and an increase in the state’s rentier dollar in the provision of public services

to society.” 

The minister pointed out that “the main unintended results were a devastating impact on the productive and competitive capacity in industry and agriculture, which have become uncompetitive (especially against their counterparts in neighboring countries), and which can only be sustained through huge budget costs through subsidizing all aspects of production.

Allawi pointed out that "the rise in the real exchange rate of the dinar in exchange for the low exchange rates with its trading partners (Iran and Turkey), means that Iraq's tradable goods and the most productive sectors will become more expensive compared to those in other countries, and thus lose their competitiveness, as it can be understood This dynamic by noting the increase in Turkish and Iranian exports to Iraq, which coincided with the depreciation of the two countries’ currency against the dinar, and that this increase in their exports to Iraq came at the expense of the local agricultural sector, which provides 20% of opportunities

 the work.

He stated that “the shrinking of the local production capacity was one of the results of the strong dinar policy, and it had a devastating impact on the productive and competitive capabilities in industry and agriculture, as is evident from looking at the small size of the main traded commodity sectors in Iraq, such as agriculture and industry, moreover, these sectors In essence, it didn't make any sense

 true".

 

[6ly410]

Diversification of revenues addresses economic imbalances

Saturday 26 March 2022 147

https://alsabaah-iq.translate.goog/62353/تنويع-الايرادات-ي-عالج-الاختلالات-الاقتصادي-ة?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

 

 Baghdad: Mustafa Al-Hashemi

The budget plays an important role in shaping Iraq’s economic policy, especially if it supports the diversification of income sources from non-oil revenues, as it is indicated that the secret of the success of any project is mainly related to financial financing, and that any success of financial vitality can only be achieved through political and security stability, At a time, the Ministry of Finance adhered to its position regarding adjusting the exchange rate and returning it to what it was by 120,000 dinars per $100, as any exchange rate adjustment needs several years to repair past damages, and a devaluation of the currency will need, as an integral part of the comprehensive reform package, For a number of years before it leads to the desired results.

 

In this regard, Adviser to the Prime Minister for Financial Affairs, Dr. Mazhar Muhammad Salih, said: “The previous budgets were mostly compensatory budgets, that is, distributing salaries instead of free public services and transferring them to private services such as electricity, water and services, and this is a failure in preparing budgets. 

the public".

Saleh added that "the policy of the Ministry of Finance came with positive financial results that worked to modify the Iraqi economy, and that this change should not continue for a long time because this would affect the general members of society."

The advisor praised the economic reforms presented by the white paper that significantly improved the country's situation and the conduct of financial matters, stressing the need for "the adoption of these reforms and amendments on the board of this paper by the specialists."

The advisor presented several proposals that would raise the country’s economy, including maximizing non-oil revenues and financial sustainability to ensure the government’s ability to balance revenues and expenditures, and observing flexibility in the budget preparation process to suit emergency circumstances.

While other specialists suggested “increasing cooperation or merging the Ministry of Planning with the Ministry of Finance to ensure the success of public budgets, address the fragile budget constraint and correct deviations.”

For his part, Finance Minister Ali Allawi confirmed the success of “the Central Bank’s policy in reducing inflation and economic stability,” adding: “However, this stability came at a great cost to the economy, exacerbated by the accumulation and continuation of the practice of public and economic policies since the seventies of the last century, represented in utilizing the revenues of the increasing oil revenues. The country as a tool to amplify the state’s role in the economy and society, through the expansion of the public sector, direct and indirect state control over the economy, and an increase in the state’s rentier dollar in the provision of public services

to society.” 

The minister pointed out that “the main unintended results were a devastating impact on the productive and competitive capacity in industry and agriculture, which have become uncompetitive (especially against their counterparts in neighboring countries), and which can only be sustained through huge budget costs through subsidizing all aspects of production.

Allawi pointed out that "the rise in the real exchange rate of the dinar in exchange for the low exchange rates with its trading partners (Iran and Turkey), means that Iraq's tradable goods and the most productive sectors will become more expensive compared to those in other countries, and thus lose their competitiveness, as it can be understood This dynamic by noting the increase in Turkish and Iranian exports to Iraq, which coincided with the depreciation of the two countries’ currency against the dinar, and that this increase in their exports to Iraq came at the expense of the local agricultural sector, which provides 20% of opportunities

 the work.

He stated that “the shrinking of the local production capacity was one of the results of the strong dinar policy, and it had a devastating impact on the productive and competitive capabilities in industry and agriculture, as is evident from looking at the small size of the main traded commodity sectors in Iraq, such as agriculture and industry, moreover, these sectors In essence, it didn't make any sense

 true".