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Financial Adviser: Employees' salaries will be paid in 2023 according to the national interest


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The financial advisor talks about an unamortised “enormous” advance: it prevents the completion of final accounts
 

Baghdad - people  

Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, confirmed on Sunday that there are huge un-amortized advances to ministries, amounting to 150 trillion dinars, that prevent the completion of final accounts.  

 

  

Saleh said in a statement to the official newspaper, followed by "Nass" (July 3, 2022), that the obstacles that prevent the final accounts are being held, represented by the lack of budgets, and the ministries borrowing huge amounts of money that have not been extinguished so far, exceeding 150 trillion dinars.  

  

And he indicated that "the final account procedure requires the existence of a general budget for the state, and in the absence of it, a budget law (reality status) is required to be discussed and approved by the House of Representatives."  

  

He pointed out that "the final accounts require that they be prepared in succession, as it is not possible to calculate a current year without making the calculation for the previous one, and this is expected to happen during the current year, in the event that a general budget of the state is not approved."  

  

Earlier, the World Bank Group said that Iraq is gradually emerging from the deep recession that it experienced in 2020 due to the Corona Virus (Covid-19) pandemic and the accompanying collapse in oil prices, but at the same time it warned of the repercussions of delaying the approval of the financial budget. .   

  

The report, which was followed by "Nass" (June 16, 2022), said that despite expectations that the Iraqi economy will grow by an average of 5.4% annually between 2022 and 2024, macroeconomic expectations are surrounded by a large degree of risks due to the high dependence on oil, and the continued The stalemate in the budget, and the delay in forming the new government.    

  

The report also emphasized that dependence on oil alone could harm domestic motivations to implement economic reforms, which would deepen the country's structural economic challenges.    

  

The report concluded that, after contracting by more than 11% in 2020, the Iraqi economy achieved a growth of 2.8% in 2021 with the easing of restrictions imposed by the Corona pandemic on movement, and this growth was supported by a strong expansion in non-oil production, especially in Services sector.    

  

With the phasing out of the OPEC+ production cuts, oil GDP also began to grow in the second half of 2021, and higher oil revenues pushed Iraq's fiscal and aggregate external balances to surplus in 2021. The stagnation in the public finances continues, and the uncollected arrears remain large.    

  

Commenting on this, Saroj Kumar Jha, Regional Director of the Mashreq Department at the World Bank, said: “Iraq has a unique opportunity to undertake urgent and wide-ranging structural reforms by taking advantage of the fiscal space created by its recent windfall oil revenues.    

  

  

The report reveals that the current food security challenges in Iraq have intensified in the midst of the current rise in the prices of basic commodities globally, while the level of local food production is less than the level of demand resulting from rapid population growth. Severe droughts and other climate change factors have exacerbated this situation    

  

While direct subsidies and transfers can help mitigate these negative impacts in the short term, achieving food security requires coordinated efforts to improve local food production and more efficient management of water resources.    

  

Iraq’s financial, social and economic fragility underscores the need to accelerate much-needed macro-structural and financial reforms to remove impediments to private sector development, increase investments in water efficiency and agri-food systems, and shift towards more sustainable sources of energy, in addition to decarbonizing the private sector. Transport.    

  

Further delays in forming the government and approving the 2022 budget may limit the use of the country's sudden oil revenues, as the actual ceilings of the 2021 budget have been reached, and suspend the implementation of new investment projects, which may reduce economic growth.    

  

As for the "white paper" drawn up by the Iraqi government, it remains to this day a model and a bold blueprint for a comprehensive economic reform program towards economic diversification.    

  

  

For example, a child born in Iraq prior to the Corona pandemic may be productive at the age of eighteen at only 41% of what it would have been if he enjoyed a full education and full health. The pandemic has affected Iraq's human capital by negatively affecting the health and economic well-being of today's workers, as well as by lowering the potential productivity of Iraq's future generation.    

  

Addressing such challenges requires an educational reform path to improve the level of learning and skills development for Iraqi children.    

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Economy News-Baghdad
Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, revealed, on Sunday, the existence of huge un-amortized advances to the ministries, amounting to 150 trillion dinars, which prevents the completion of the final accounts .

Saleh said in a press interview, that "the obstacles that prevent the final accounts from being conducted are the lack of budgets, and the ministries borrowing huge amounts of money that have not been extinguished so far, exceeding 150 trillion dinars ."

He added, "The final account procedure requires the existence of a general state budget, and in the absence of it, it is necessary to issue a budget law (a reality) that is discussed and approved by the House of Representatives ."

Saleh explained, "The final accounts require that they be prepared in succession, as it is not possible to calculate a current year without making the calculation for the previous one, and this is expected to happen during the current year, if the state's general budget is not approved ."

 
 

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Added 07/03/2022 - 11:34 AM
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 Baghdad: Rola is confident 
 
Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, revealed that there are huge un-amortized advances for ministries, amounting to 150 trillion dinars, that prevent the completion of final accounts. 
Meanwhile, the House Finance Committee intends to hold accountable those responsible for delaying the completion of these accounts. 
Saleh told Al-Sabah: The obstacles that prevent the final accounts from being conducted are represented in the lack of budgets, and the ministries borrowing huge amounts of money that have not been extinguished so far, exceeding 150 trillion dinars.
And he indicated that the final account procedure requires the existence of a general budget for the state, and in the absence of it, a budget law (reality status) is required to be discussed and approved by the House of Representatives.
He pointed out that the final accounts need to be prepared in succession, as it is not possible to calculate a current year without making the calculation for the previous one, and this is expected to happen during the current year, in the event that a general budget of the state is not approved.
Saleh recently identified two main factors in the failure to approve the final accounts on a regular basis. The first is the difficulty of settling the accumulated government advances, which may be equivalent to the expenses of a full fiscal year or more and lack supporting documents at a high rate, in addition to the existence of more than one fiscal year in which there is no law for the general budget, especially for the two years. 2014 and 2020.
For his part, a member of the Finance Committee in the House of Representatives, Ahmed Mazhar Al-Jubouri, told Al-Sabah: The final accounts have been sluggish for years, noting that they have not been completed since 2018 so far.
He added that the failure to complete these accounts represents a major problem that the government will bear first and then the Financial Supervision Bureau, so the Parliamentary Finance Committee will have fateful sessions to hold the concerned authorities accountable for its delay.
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Al-Kazemi's advisor talks about (promising opportunities) to achieve reform projects and economic progress

Economy |   02:18 - 09/07/2022

 
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Baghdad - Mawazine News
, the financial advisor to the Prime Minister, Mustafa Al-Kazemi, outlined the stages of cooperation of the international community to help Iraq economically, while noting that the white paper is the product of this cooperation.

Saleh said, "International cooperation in assisting Iraq economically extends to the Madrid Donors Conference held in October 2003, in which the foreign ministers of 77 countries pledged to provide aid for the reconstruction of Iraq, with an amount exceeding 33 billion dollars to restore the infrastructure destroyed by wars and the siege." former economist.

In an interview with the official news agency, Mawazine News, Saleh added, "Many of these grants have been verified, but their financial effects were limited due to the mismanagement of the reconstruction operations at the time."

He pointed out that "the international community did not skimp on writing off more than $100 billion of debts owed by Iraq, which is Iraq's pre-1990 debt, under the Paris Club Agreement of 2004."

He continued, "The international community then continued to support Iraq, and this was embodied by the (Tokyo Declaration) by the Group of Seven major industrialized countries in their statement announced in May 2016, which supported Iraq financially and economically to confront its dual economic and security crisis at the time, and the Kuwait Conference for the Reconstruction of Iraq in The year 2018, which helped sustain UN aid to finance stabilization operations in the liberated areas after the victory over ISIS terrorism.

And he added: "During the double financial and health crisis that our country was subjected to in 2020, the international community felt Iraq's need for international aid to reform and reorganize the economy in order to achieve sustainable development and combat decline and corruption, so it was formed in London in the middle of the year 2020, what was called ( The Iraq Economic Contact Group (IECG) (composed of the World Bank, the International Monetary Fund, the European Union, and the Group of Seven major industrial countries).

He continued: "The aforementioned contact group expressed its willingness to support financial and economic reform projects in our country and to reorganize the financing, production and governance sectors, and the white paper was the result of that cooperation," he concluded by saying: "I see that Iraq has many serious and promising opportunities to benefit from the intentions of the international community." Positively towards achieving reform projects and economic progress in Iraq. Ended 29/N33

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Saturday, July 9, 2022 1:52 PM

National News Center / Baghdad

Today, Saturday, the appearance of Muhammad Salih, the financial advisor to the Prime Minister, Mustafa Al-Kazemi, outlined the stages of cooperation of the international community to help Iraq economically, while noting that the white paper is the product of this cooperation.

Saleh said, in a statement followed by the National News Center, that "international cooperation in helping Iraq economically extends to the Madrid Donors Conference, which was held in October 2003, in which the foreign ministers of 77 countries pledged to provide aid for the reconstruction of Iraq, with an amount exceeding 33 $1 billion to restore infrastructure destroyed by wars and the previous economic blockade.”

He added that "many of these grants were verified, but their financial effects were limited due to the mismanagement of the reconstruction operations at the time."
He pointed out that "the international community did not skimp on writing off more than $100 billion of debts owed by Iraq, which is Iraq's pre-1990 debt, under the Paris Club Agreement of 2004."

He continued, "The international community then continued to support Iraq, and this was embodied by the (Tokyo Declaration) by the Group of Seven major industrialized countries in their statement announced in May 2016, which supported Iraq financially and economically to confront its dual economic and security crisis at the time, and the Kuwait Conference for the Reconstruction of Iraq in The year 2018, which helped sustain UN aid to finance stabilization operations in the liberated areas after the victory over ISIS terrorism.

And he added: “During the double financial and health crisis that our country was subjected to in the year 2020, the international community sensed Iraq’s need for international aid to reform the economy and reorganize it in order to achieve sustainable development and combat decline and corruption, so it was formed in London in the middle of the year 2020, what was called ( The Iraq Economic Contact Group (IECG) (composed of the World Bank, the International Monetary Fund, the European Union, and the Group of Seven major industrial countries).

He continued: “The aforementioned contact group expressed its willingness to support financial and economic reform projects in our country and to reorganize the financing, production and governance sectors, and the white paper was the product of that cooperation,” he concluded by saying: “I see that Iraq has many serious and promising opportunities to benefit from the intentions of the international community.” Positively towards achieving reform projects and economic progress in Iraq.

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Adviser to the Prime Minister explains the reasons for fluctuating oil prices and his expectations regarding them
  
{Economic: Al Furat News} The Prime Minister's advisor for financial and economic affairs explained about the fluctuation of crude oil prices.

Mazhar Muhammad Salih told {Euphrates News} that "the fluctuation of oil prices downward during the recent period has a number of reasons, the most prominent of which is the continuation of the Russian-Ukrainian war, and the other is the decline of the global industrial sector."
He added, "In the whole world, we find there is a decline in global industries and economies that depend on oil as their main source of energy, so this decline will not be permanent and will not return to those levels that were in the past."
Over the past few days, oil prices witnessed volatile transactions, heading towards incurring weekly losses, with continued fears of a slowdown in demand due to a possible recession, which outweighed the impact of the lack of supplies.
Central banks around the world are raising interest rates to control inflation, which reinforces fears that lending costs may impede growth, while increasing fears of possible new closures that may undermine oil demand after the increase in infections with “Covid-19”.

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Today, Wednesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified two factors that may stand behind the possibility of a recession in the global economy in the coming months, and as he explained the impact of this in Iraq, he proposed a solution to protect the Iraqi energy market from the fluctuations in prices of crude oil markets.

Saleh said, "There are two factors for the possibility of the global economy heading towards economic stagnation in the coming months, as the first factor is the strict monetary policy of the strongest economy in the world, which is the economy of the United States, which will lead to the policies of raising interest rates undertaken by the US Federal Reserve to combat inflation at the general level." For prices in the United States, the increase in investment costs and a decline in growth in the real sectors, which leads to a possibly slow decline in inflation growth, but will lead to a greater deterioration in the level of employment, higher unemployment rates and lower rates of growth in GDP.

He added, "There is an objective link between high rates of economic growth and high demand for energy resources, which will contribute to the stagnation of derived demand for crude oil in the global market," noting that "the same will apply to the economies of the eurozone by following strict monetary policies to confront the frightening European inflation." Currently".

He pointed out that "the second factor is the development of trends in the Chinese economy, which represents the second largest economy in the world, which has entered the phase of the Cold War with the West, which means that the growth of the Chinese economy will be indirectly affected by the global recession and various forms of economic boycott due to tension in economic relations." The international community and its exposure to some Western commercial and technological isolation, as well as the inevitability of the Chinese economy being affected by the conditions of recession in global demand.

He noted that "China's imports of Russian crude oil are currently the highest among the sources of supply, and they are discounted in value by 40% per barrel, which means abandoning part of its imports from other currently high-priced oil markets from outside Russia."

He pointed out that "the aforementioned factors will undoubtedly lose the growth momentum in demand for oil energy resources in the world, which will cause some (glut) in the oil supply markets, which are highly elastic or deflationary demand factors that directly contribute to the further deterioration of prices. The oil-exporting countries in OPEC and others, the potential glut in the oil market may cause price damage to the economy of Russia, the second oil producer in the world, whose daily production is estimated at about 11 million barrels of crude oil, most of which goes to export, to face a severe oil price war.”

He continued: "There is no doubt that Iraq, whose economy depends on crude oil exports, will be affected by the price drops (if they occur) and will undoubtedly cause a decrease in the country's financial returns, so a mechanism must be applied that is to go as an accelerated future view towards employing the accumulation of financial surpluses that are currently obtained and directing their spending with priority. To finance large investments in the refining sectors of giant refineries and petrochemical plants to export petroleum products, whose added value rises to between 5-7 times compared to a barrel of exported crude oil.

He continued: "Therefore, it is necessary to adopt a policy of accelerated transformation from the policy of exporting crude oil to exporting oil products, in a manner that ensures the stability of the limits of Iraq's financial and economic sustainability from the fluctuations of oil markets during the next ten years."

He concluded by saying: "Thus, protecting the Iraqi energy market from fears of future crude oil market price fluctuations can only be achieved by raising the added value of the crude oil itself, by adopting the policy of manufacturing oil derivatives immediately by investing in (giant refineries with various products and few losses). ) as agreed upon by all energy experts in Iraq.

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The financial advisor regarding the vision of converting ministries to self-financing: needs a major legal amendment
 

Baghdad - people  

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said, on Wednesday, that the proposed idea of converting four ministries to self-financing needs a legal amendment.  

  

  

  

Saleh said, in an interview with the official newspaper, followed by "Nass" (July 20, 2022), that "the idea of converting 4 ministries into a context that is somewhat similar to self-financing, needs a major legal amendment, because the budget and exchange units are completely central."  

  

And he indicated that "the idea put forward by Counselor Haitham al-Jubouri is to convert some ministries into revenue, and these revenues cover current operational expenses, as the operational aspect includes current expenses that include employment and salaries."  

  

He explained that "the current budget has two parts: the first is the operation of the administration of the public office and its costs, and the other part is salaries and wages, and the latter is paid into the federal general budget through the operational budget that pays salaries, wages and the cost of operating the budget, which is called according to the financial literature the current budget."  

  

Saleh reiterated that “the proposed idea needs a legal amendment to transform these ministries into revenue ministries, meaning that their services are paid for as if they are a private sector, and this collection pays as salaries to its employees and covers its expenses instead of taking fees and taxes that go as central revenues, and therefore it will be a decentralized revenue, and this ( A hybrid context) because we have self-financing units that are subject to quasi-market rules governed by the provisions of the Public Companies Law No. 21 of 1997 and that these companies make profits that are costs and revenue and work on a revenue-equivalent point that covers the costs with everything in it, so this pattern is called (hybrid public finance) You need to amend a law that entails rights and duties related to retirement and others that reduce public revenues as a cost.  

  

Earlier, the Prime Minister's Adviser for Economic Affairs, Haitham al-Jubouri, put forward an economic vision that is summed up in converting four ministries to a self-financing system, restoring the strength of the Iraqi dinar and unifying employee salaries.  

  

Al-Jubouri said in a statement to the official newspaper, followed by "Nass", (July 18, 2022), that "there is an economic vision for the next phase, part of which was written, and the most prominent of these ideas are the transformation of four ministries, namely transport, communications, interior and trade, from central to self-financing, and they can benefit from the revenues." achieved by it, through the large and discreet companies that it owns or the revenues that are achieved through its work,” noting “the possibility of benefiting from the amounts allocated to it from the state treasury in establishing productive development projects.”    

  

He added, "There is a vision in the exchange rate of the dollar, and restoring confidence and strength to the Iraqi dinar, provided that it is not by a decision, as happened in the decision to raise the exchange rate, but by real economic reforms and an increase in non-oil revenues with a plan extending from one to four years, and increasing the volume of investments in the country by persuading Iraqi investors who invest their money abroad to return to Iraq through facilities provided to them and encouraging them to invest their money inside the country.”    

  

Al-Jubouri pointed out that "among the vision is the automation of government procedures, electronic connectivity, amending instructions for implementing government contracts, and the issue of tax exemptions with a focus on increasing the tax base through profitable companies or personalities," expressing "regret that there is a focus on the simple citizen in the tax issue." While most companies evade the final accounts as they are fictitious.    

  

And the Prime Minister's Adviser for Economic Affairs, "the possibility of increasing customs revenues, which can achieve huge sums in the event that there is governance of the border crossings."    

  

He explained, "The necessity of activating the collection of electric energy that is prepared for citizens, shops and commercial establishments, as the ministry collects only 7 percent of the money, and the vision also included the establishment of the fourth mobile phone license company, activating licensing rounds for investing in minerals as in oil, and standardizing the salary scale of employees. Without increasing the total amount for it, which will be among the interests of the next government, as it is not possible for an employee in a ministry to take 5 times as much as another employee with the same title, degree and certificate.”    

  

He stressed, "Part of these ideas can be started through effective laws, such as the Financial Management Law and the Electronic Signature Law, which needs speed in the procedures of its legislation."    

  

He pointed out, "Some find it strange to implement some of this plan, but all of them are feasible and there is an integrated vision on this subject, if we know that it can be implemented in the near, medium and long stages."    

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Baghdad / NINA / - The financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified today, Sunday, three axes that monetary policy pursues to confront inflationary prices, while stressing that economic policy in Iraq plays an important role in maintaining stability.


Saleh said in a press statement, "The most dangerous trend in the inflationary phenomenon is the so-called inflationary expectations, which is what consumers and the business sector expect from future price hikes that lead to immediate adjustments and precautions in the growth of the annual general level of prices, including warehouse prices, which exacerbates the matter. From the price problem to the upward trend unless it is addressed with appropriate economic policies.”


He added, "The function of maintaining the stability of the exchange rate in the monetary market is one of the most important monetary policy functions of the Central Bank in addressing the forces that generate inflationary expectations."


He continued, "This is what the monetary policy of the Central Bank of Iraq seeks steadily through the use of part of its foreign reserves to intervene in the exchange market and to address high levels of domestic liquidity by providing a sufficient supply of foreign currency to meet the needs of market demand for foreign exchange, which in fact represents a demand Derived on foreign goods, services and benefits that are undertaken by the foreign trade activities of the private sector.


He pointed out that "the fiscal policy currently follows three axes to combat inflationary pressures and their expectations resulting from price growth towards the rise, and the financial authority undertakes it through the implementation of the effective Financial Management Law No. 6 of 2019 amended and the emergency food security and development Law No. 2 of 2022."


He explained, "The first axis is the zeroing of customs duties and taxes on imported goods and services that directly affect people's lives, because customs duties and taxes represent an additional cost that the wholesale trade sector transfers to the consumer sector, that is, single trade through spending or consumer demand for imported goods and services." .


He continued by saying: "The second axis is the expansion of the ration card vocabulary and the regularity of providing it with subsidized and semi-symbolic prices to meet the need for the poor and low-income classes of the basic materials of life."


And Saleh stated, "The third axis is the continuation of the state's stability and its preservation of the prices of its goods and services sold in all the market or the so-called (administrative prices), especially fuel, as well as support for the requirements of agricultural production and other life and pharmaceutical supplies that government institutions buy into civil activity, in addition to To the stability of the rates of fees, taxes and wages imposed by all official authorities with the offer.


He stressed, "Expanding the social welfare network and covering it with cash assistance for segments below the poverty line is a catalyst that comes to combat inflationary pressures in prices and their harmful social effects, which are mainly caused by global inflation imported into our country because of the global energy and food crises as a result of the war in Eurasia that is currently in place."


He continued: "The general economic policy in our country plays an important role in maintaining stability and containing all price movements, through direct and indirect coordination in the work of monetary and fiscal policies to impose stability and combat inflationary activities in prices and contain manifestations of inflationary expectations at the same time." / End 8
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Al-Kazemi's advisor talks in detail about three axes to confront inflation

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money and business
  https://economy-news.net/content.php?id=28994 

Economy News - Baghdad
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified, on Sunday, three axes that monetary policy pursues to confront inflationary prices, while stressing that economic policy in Iraq plays an important role in maintaining stability.

Saleh said, "The fiscal policy currently follows three axes to combat inflationary pressures and their expectations resulting from price growth towards the rise, and the financial authority undertakes it through the implementation of the effective Financial Management Law No. 6 of 2019 amended and the emergency food security and development Law No. 2 of 2022."

He explained, "The first axis is the zeroing of customs duties and taxes on imported goods and services that directly affect people's lives, because customs duties and taxes represent an additional cost that the wholesale trade sector transfers to the consumer sector, that is, single trade through spending or consumer demand for imported goods and services." .

He continued by saying: "The second axis is the expansion of the ration card vocabulary and the regularity of providing it with subsidized and semi-symbolic prices to meet the needs of the poor and low-income classes of basic living materials," according to the official news agency.

And Saleh stated, "The third axis is the continuation of the state's stability and its preservation of the prices of its goods and services sold in all the market or the so-called (administrative prices), especially fuel, as well as support for the requirements of agricultural production and other life and pharmaceutical supplies that government institutions buy into civil activity, in addition to To the stability of the rates of fees, taxes and wages imposed by all official authorities with the offer.

He stressed, "Expanding the social welfare network and covering it with cash assistance to segments below the poverty line is an auxiliary factor that comes to combat inflationary pressures in prices and their harmful social effects, which are mainly caused by global inflation imported into our country due to the global energy and food crises as a result of the current war in Eurasia." . 

He concluded, "The overall economic policy in our country plays an important role in maintaining stability and containing all price movements, through direct and indirect coordination in the work of monetary and fiscal policies to impose stability and combat inflationary activities in prices and contain manifestations of inflationary expectations at the same time."

 
 

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Added 07/24/2022 - 7:00 PM
Update 07/25/2022 - 4:33 PM
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An Iraqi official reveals the axes of monetary policy to confront inflationary prices

An Iraqi official reveals the axes of monetary policy to confront inflationary prices
Financial Adviser to the Iraqi Prime Minister Mazhar Muhammad Salih
 

 

 

Mubasher: The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, identified, today, Sunday, three axes that monetary policy pursues to confront inflationary prices, stressing that economic policy in Iraq plays an important role in maintaining stability.

Saleh told the Iraqi News Agency (INA): "The most dangerous trend in the inflationary phenomenon is the so-called inflationary expectations, which consumers and the business sector expect from future price hikes that lead to immediate adjustments and hedges in the growth of the annual general level of prices, including warehouse prices. Which exacerbates the price problem with an upward trend.

He added, "The function of maintaining the stability of the exchange rate in the monetary market is one of the most important monetary policy functions of the Central Bank in addressing the forces that generate inflationary expectations."

He continued, "This is what the monetary policy of the Central Bank of Iraq seeks steadily through the use of part of its foreign reserves to intervene in the exchange market and to address high levels of domestic liquidity by providing a sufficient supply of foreign currency to meet the needs of market demand for foreign exchange, which in fact represents a demand Derived on foreign goods, services and benefits that are undertaken by the foreign trade activities of the private sector.

He pointed out that "the fiscal policy currently follows three axes to combat inflationary pressures and their expectations resulting from price growth towards the rise, and the financial authority undertakes it through the implementation of the effective Financial Management Law No. 6 of 2019 amended and the emergency food security and development Law No. 2 of 2022."

He explained, "The first axis is the zeroing of customs duties and taxes on imported goods and services that directly affect people's lives, because customs duties and taxes represent an additional cost that the wholesale trade sector transfers to the consumer sector, that is, single trade through spending or consumer demand for imported goods and services." .

He continued by saying: "The second axis is the expansion of the ration card vocabulary and the regularity of providing it with subsidized and semi-symbolic prices to meet the need for the poor and low-income classes of the basic materials of life."

And Saleh stated, "The third axis is the continuation of the state's stability and its preservation of the prices of its goods and services sold in all the market or the so-called (administrative prices), especially fuel, as well as support for the requirements of agricultural production and other life and pharmaceutical supplies that government institutions buy to civil activity, in addition to To the stability of the rates of fees, taxes and wages imposed by all official authorities with the offer.

He stressed, "Expanding the social welfare network and covering it with cash assistance for segments below the poverty line is a catalyst factor that comes to fight inflationary pressures in prices and their harmful social effects, which are mainly caused by global inflation imported into our country due to the global energy and food crises as a result of the war in Eurasia currently existing." 

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Economy News-Baghdad
Adviser to the Prime Minister for Economic Affairs, Dr. Mazhar Muhammad Salih, noted that the in-kind support provided by the government to the segments covered by the ration card is better than the financial support that is being planned for implementation.

Saleh said in a statement to "Al-Sabah": The Council of Ministers had earlier put forward a proposal to issue smart cards to disburse money instead of the ration card.

He explained that Iraq needs a commodity offer that the monetary alternative may not provide, and therefore does not fulfill its purpose, indicating that the monetary solution is better and easier for the government, but it is not in the interest of the citizen.

In turn, the economic expert, Alaa Al-Fahd, pointed out during his speech to "Al-Sabah" that the adoption of the cash alternative would raise prices in the markets, in addition to the high prices of foodstuffs we are witnessing globally.

He added that raising the exchange rate of the dollar against the dinar had an impact on the Iraqi market as a result of its dependence on imports.

He added that there is a large segment of society suffering from poverty and unemployment, according to surveys conducted by the Ministry of Planning, and therefore these segments need greater support than the ration card, which requires the next government to achieve food security for the poor and fragile classes, according to what is done in the countries of the world.

Al-Fahd warned of the need to reconsider and take into account the distribution of ration items according to a criterion in which the poorest segments are identified, wondering at the same time, is what is being distributed commensurate with the amounts of money spent, or is this file tainted by large corruption and waste deals, (he said).

And he indicated that Iraq is one of the countries threatened by the food crisis as a result of being affected by the rise in prices, especially in flour and oil, pointing out that wheat, which is the basic material in achieving food security, currently covers 35-40 percent of the local need, as two million tons are available in stores.

Al-Fahd called on traders not to raise prices, taking advantage of the months in which the demand for foodstuffs increases, such as the months of Muharram and Ramadan, stressing the need to activate the role of regulatory authorities and hold price manipulators accountable, especially since the government issued decisions with customs and tax exemptions on foodstuffs to maintain their prices, as well as to support the local product. through the agricultural calendar.

 
 

 


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Added 07/27/2022 - 9:17 AM
Update 07/27/22 - 6:13 PM
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Government reassurance regarding currency reserves and excluding it from being affected by the dollar globally
  
{Economic: Alfart News} The Prime Minister's Advisor for Financial Affairs, Mazhar Muhammad Salih, reassured Iraq's foreign currency reserves {dollar}.

Saleh told {Euphrates News}: "The official foreign currency reserves portfolio in our country is subject to the principle of diversification in order to avoid the so-called risks of foreign currency fluctuations, which means any decrease in the dollar in exchange for a rise in the rest of the components of the foreign reserve portfolio."
He added, "On the other hand, Iraq's foreign trade is summed up in a high percentage of trading in the dollar area, and therefore the risk of currency fluctuations on import prices is in a mostly neutral range."
Saleh indicated that "the damages of the dollar's decline globally against other foreign currencies are still partial to the national economy."
On June 7, Prime Minister Mustafa Al-Kazemi announced that the reserves of the Central Bank of Iraq had reached $76 billion and would reach $90 billion by the end of this year.

From: Raghad Daham
Editing: Ammar Al-Masoudi

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Al-Kazemi’s advisor sets priorities for investing financial savings and increasing revenue

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 Economy

 

  •  Today, 17:50
 

Baghdad - INA - Nassar Al-Hajj
, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified, today, Friday, the priorities for investing financial savings and the increase in total revenues.
Saleh said, to the Iraqi News Agency (INA), that "the increase in total revenues, based on oil revenues, is subject when it is outside the limits of financing the expenditures set forth in Law No. 2 of 2022, that is, the Emergency support Law for Food Security and Development, or exceeds the funding limits set forth in accordance with Provisions of Article (13) / Second of the effective Financial Management Law No. (6) of 2019 disbursing 12/1 of the actual current expenditures realized in the fiscal year 2021.
He added, "Based on the provisions of the two laws above, and when actual revenues exceed expenditure estimates, and after covering the actual deficit, if any, in the emergency law as mentioned, the surplus is directed and employed in the budgets of the following years through a (sovereign fund) as stipulated by the provisions of Article 19 of the Financial Management Law. The aforementioned, provided that legal adaptation is available for the current fiscal year’s conditions because the financial savings that go to the sovereign fund’s account is required under the applicable Federal Financial Management Law to have a law for the annual general budget, which does not exist for the year 2022.
He continued, "Nevertheless, this means, in all cases, the generation of official reserves that are used for spending in the coming years through a sovereign saving fund inevitably, and it is managed in accordance with international best practices in managing and investing official reserves and benefiting from the investment returns of these official foreign reserves or disposing of them." In financing the budgets of the coming years and achieving the so-called financial sustainability, as confirmed by the Central Bank of Iraq in its recent statements about the management of the Fund.
He continued, "Certainly, the priority will go in an important aspect towards financing investment projects that contribute to the development of national income and the economic prosperity of our country."
He explained, “If the fiscal year 2022 ends, for example, without approving the general budget, and starting spending at a ratio of 1/12 of the actual current expenditures for the past year 2021, the financial surpluses will go to a fund or reserve account that represents the sovereign wealth, and certainly the priority will go.” Towards the sustainability of financing investment projects that contribute to the development of national income and the economic prosperity of our country.

He concluded by saying: "Despite the foregoing, there is a fundamental development that came in the effective Federal Financial Management Law that was amended in 2020, whereby governorates that did not benefit from their share of the allocation for investment projects were allowed to keep those allocations in the following year in a trust account to resume the exchange. The approved investment projects shall do so in the following year without interruption, even in the event of a delay in approving the budget.

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An Iraqi official: The failure to pass a law for the general budget disrupts the government's investment projects

An Iraqi official: The failure to pass a law for the general budget disrupts the government's investment projects
Financial Adviser to the Iraqi Prime Minister Mazhar Al-Hajj
 

 

 

Mubasher: The financial advisor to the Iraqi Prime Minister, Mazhar Al-Hajj, warned that the failure to pass a law on the general budget would disrupt the government’s investment projects, especially large and strategic projects, which would lead to delays or shortfalls in economic growth rates.

Al-Hajj said - to the Iraqi News Agency (INA), today, Sunday - "The alternative laws to the annual federal budget law are treatments for the minimum in the conduct of economic life in the country, such as the Financial Management Law and its current applications or the recently adopted emergency food security law."

He added: "This failure has negative effects that extend to the coming years due to the faltering growth of the large national capital accumulation, and the transformation of spending into a phenomenon limited to consumption only, which is fed by imports," explaining that this leads to growing cases of stagnation and economic stumbling in the end. Underemployment levels or crowding degrees of unemployment in all cases.

It should be noted that Iraq suffers from a state of political impasse following the holding of the parliamentary elections in October 2021, the faltering formation of a new government in Baghdad according to the election results announced on November 30, 2021, and the resignation of the Sadrist movement's 74 deputies from Parliament on June 12 last.

On July 25, the Iraqi "coordinating" framework put forward Muhammad Shia Al-Sudani as a candidate to head the Iraqi government, which was rejected by the supporters of the "Sadr movement" and stormed the Iraqi parliament in the heavily fortified Green Zone twice within three days, and announced an open sit-in at the parliament headquarters on July 30, 2022.

Representatives of the "Coordination Framework" suspended three sessions of the House of Representatives to elect the Iraqi president, which requires the presence of two-thirds of the members according to the Iraqi constitution to complete the quorum.

It is noteworthy that most indicators warn that the adoption of the draft budget law for 2022 will be delayed as a result of the political blockage due to the failure to form a new government according to the results of the parliamentary elections and the selection of a president in Iraq, and that the Iraqi parliament approved at the end of March 2021 the draft general budget law for the country, after about four months of Its disruption is equivalent to about $69 billion.

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Al-Kazemi’s advisor: We are facing waves of inflation by zeroing customs duties on foodstuffs
 

Baghdad - people  

On Wednesday, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, identified two positive goals for the procedures for zeroing food and basic foodstuffs fees, while indicating that the decision to zero customs is reviewed every three months.  

  

Saleh told the official agency, followed by "Nas" (August 17, 2022), that "the procedures for zeroing customs duties on food and basic foodstuffs are important and accurate, to impose price stability in the country and confront the waves of inflation imported from the world on the most consumed imported materials and goods that affect the lives of segments." low-income social.  

  

He added, "Targeting customs duties and taxes is mostly an alternative equivalent to the effects of the exchange rate in imported goods and its continuous rise due to the effects of the energy and grain crises in the world due to the war between Russia and Ukraine," noting that "the decision to zero customs duties and taxes is a temporary measure until prices stabilize." world and its decline.  

  

He stressed, "The decision to zero in on customs is reviewed every three months to assess the importance of continuing to implement the decision or not."  

  

With regard to local production, Saleh said: "Imported production supplies and requirements, which are inputs for the production of local goods similar to those imported, should include, if not already included, customs zeroing," noting that "this generates a base of equal competition to satisfy demand." At the same time, achieving a price balance and effective sustainability of national production.  

  

And last March, the Customs Authority announced the application of procedures for issuing circulars for the implementation of Resolution 72 of 2022, which includes zeroing customs duties for food, basic consumer and building materials, in order to support the citizens’ segment and the people’s food, which affects their daily lives to meet the challenges of high prices.  

  

 

 
 
 
 
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money and business
   

Economy News-Baghdad
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said that the war on terrorism in the years 2014 to 2017 cost the Iraqi treasury about 30 billion dollars, indicating that terrorism robbed nearly a fifth of Iraq's non-oil GDP.

Saleh added in an article he published on the Iraqi Economists Network website that "the costs of daily military operations rose from 5 million dollars per day to nearly 30 million dollars per day, which are expenses required by the fields of war against terrorism."

He pointed out that "terrorism led to the displacement of about 6 million citizens of the occupied governorates, which raised poverty rates to 30% due to families' loss of sources of income and economic activity, as well as the increase in unemployment rates."

He pointed out that "the economic atmosphere at that time remained frustrated by the challenges of recession represented by its three pillars, stagnating prices, declining growth in domestic and gross domestic product, and high levels of unemployment."

 
 

Views 128
Added 08/23/2022 - 11:41 AM
Update 08/23/22 - 4:17 PM
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  • 4 weeks later...
Adviser to the Prime Minister: The growth rate of 2022 is unprecedented..and explains the reason
  
{Economic: Al Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Salih, described the unprecedented growth rate expected to be achieved during the current year, and expected the rates to continue to increase during the next year 2023.

Saleh said in a press statement, "The World Bank estimated that the growth rates of Iraq's gross domestic product would reach 9 percent during 2022, according to a report it launched during the current year.
Salih promised an unprecedented growth rate expected in Iraq, attributing the reasons for achieving it to an increase The quantities of oil produced and their reaching wider production capacities after removing the restrictions imposed by the (OPEC +) agreement in the year 2020, which provides for reducing the quantities of oil produced by more than one million barrels to remove the glut in the oil market during the Corona crisis.He
explained that economic growth decreased in Iraq. to (minus 11) percent during the Corona pandemic, after the sectors of the economy stopped working for about six months, and
added that the operation of the economic sectors made Iraq’s economic cycle reach its peak, according to the estimates of the World Bank, and as reinforced by the high growth figure in GDP Total.
Salih expected that growth estimates during the next year will range from 5-4%, which is a reasonable rate after the stability of the economic cycle, especially since the growth rate exceeds the growth rate of the population in all cases, which should be reflected in the relative economic well-being.
It is noteworthy that the International Monetary Fund expected the Iraqi economy to grow by 9.5 percent this year to be the highest in the Arab world.

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  • Time: 09/25/2022 16:32:00
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An advisor to Al-Kazemi answers the budget deficit.. When will it stop?
  
{Economic: Al-Furat News} The economic and financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed today, Sunday, the date of stopping the budget deficit.
 

Saleh said {to Euphrates News} that: “Talking about fears of a deficit in the federal budget for the fiscal year 2023 will inevitably depend on the increase in the total spending ceiling by about 150 trillion dinars and the development of oil prices down below 86 dollars per barrel.”
He added, “With the stability of the exported quantities, which are An inverse relationship between the two parties, assuming that the balance of additional reserve resources likely to be achieved at the end of 2022 will be placed in a sovereign fund that will be directed to support the budget, whether to serve economic development or social support for the poor and vulnerable groups.
Saleh stressed, "The whole issue will depend on the development of oil prices during the last quarter of the year 2022 and the next fiscal year 2023."
And the US Energy Information Administration announced, on Sunday, a decrease in Iraq's oil exports to America, despite the export of 200,000 barrels per day during the past week.
The administration said in a report, that the average US imports of crude oil during the past week from nine countries amounted to 6.065 million barrels per day, an increase of 830 thousand barrels per day from the previous week, which amounted to 5.235 million barrels per day.

From: Raghad Daham

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On 7/3/2022 at 11:07 PM, yota691 said:

s to ministries, amounting to 150 trillion dinars, that prevent the completion of final accounts. 

Under a reset this will be wiped they call it a debt jubilee it was planned for 2008 financial collapse instead opted for QE. This is why Governments have spent big under the scamdemic because they all know under a rest the debt gets wiped. Let’s hope our debt gets wiped. That’s the plan 

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