Mazhar Saleh: Iraq is on the verge of an economic recovery
The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, expressed his optimism about the expected deficit levels in the next year’s budget 2022, stressing that the hypothetical deficit gap (will be automatically canceled) as a result of positive oil revenue differences, especially in the event that the average price of a barrel of oil stabilizes at 70 dollars.
At the same time, revealing that the 2022 budget seeks to maximize the optimal spending on investment projects, with the aim of achieving a growth rate in the gross domestic product, which is no less than 5%.
Despite the level of optimism expressed by the government advisor, the economist, Manaf Al-Sayegh, believes that estimating the selling price of a barrel of oil in previous budgets is not subject to the standards of the global market, and this leads to the adoption of an inaccurate hypothetical price that pushes towards building spending with an unclear deficit, pointing out That Iraq’s budgets are item budgets, and this pattern was abandoned by most countries of the world due to its inefficiency in achieving annual spending requirements, calling for work on balancing goal-oriented programs.
A precautionary deficit
Saleh said in a statement that “there are developments in the features of the expected general budget for 2022, which approved an oil price of about $50 per barrel, for the purposes of calculating average oil revenues throughout the next year in light of a daily export capacity of more than three million barrels of oil.” In the event of an increase in the spending ceiling by 10% over the current ceiling in the 2022 budget, this means that there is a precautionary deficit that will be approved by the budget to avoid undesirable fluctuations in oil prices during the next fiscal year.
According to the foregoing, the financial advisor to the Prime Minister believes that “the hypothetical deficit will be 20% of the total total spending ceiling, and about 8% of GDP, but the average price of a barrel of oil, if it continues to remain stable at $ 70, the budget will be in Mostly an equilibrium situation, and the default deficit gap will be automatically canceled from the positive oil revenue differentials.
An investment budget
Despite the “cautious” optimism shown by Saleh, which is closely related to fluctuating oil prices, with the aim of reaching a budget without a fiscal deficit, the next year’s 2022 budget in its other aspects, according to the government advisor, “will be distinguished by introducing a medium-term program for investment projects, With commitment to the program costs for important and strategic projects, and according to their social priorities, especially those that affect the well-being of society and its economic priority, being income-generating and operating the business cycle in the economy.
The next budget will also seek, according to Saleh, to maximize the optimal spending on investment projects with the aim of achieving a growth rate in the gross domestic product that exceeds the population growth rate, and not less than 5% or more, which will lead to an accelerated reduction in unemployment rates as well, stressing These steps will lead to economic recovery in the country.
Items and programs
In turn, the economic expert, Manaf Al-Sayegh, identified, during a statement, a set of imbalances. He said: The previous budgets suffered a lot, putting at the forefront of these imbalances the budget’s dependence on the principle of items that most countries of the year left, and now depend on the budget of goals-oriented programs, as well as the lack of The issue of estimating the selling price of a barrel of oil in the general budget is subject to international market standards, which pushes towards building spending with an unclear deficit level.
Al-Sayegh hinted that “most budgets since 2014 have witnessed the status of investment spending in them, equal in their expenditures to the value of the planned deficit in the budget, noting that any financial returns that come from selling oil in the event of an improvement in its prices, through which investment expenditures are covered, This means that the government canceled investment spending and mortgaged it to the budget deficit.”
The economist believes, “The circumstance that Iraq is going through requires a change in the way and pattern of thinking of those who build public budgets in the classical way, which depends on guesswork in determining spending levels, and thus increases in most cases what public spending units need, and leads to higher levels of spending. Operational spending at the expense of annual investment spending, with a decrease in the efficiency level of spending, which leads to waste of public money and encourages corruption.
Suggesting in this matter, “transition to a pattern of prioritizing according to the available spending levels, without the need for spending that leads to a deficit, with an emphasis on building budgets on the basis of annual programs subject to measurement, follow-up and modification to turn at the end of the fiscal year into existing projects that serve the community and the state link
Government advisor: The white paper is closer to an economic constitution
Baghdad – Mawazine Yanouz,
The financial advisor to the Prime Minister Mazhar Saleh, on Wednesday, identified the importance of the white paper and its reflection on the economic reality in the country, while noting that the paper is closer to an economic constitution.
“The white paper is a dual reform project that seeks to achieve the country’s financial sustainability with the ability to be economically sustainable in an integrated manner,” Saleh told the official news agency.
He added, “The importance of this paper, which works in the long term, has established in the short period an ideology that was confused in the economic society.”
He pointed out that “the white paper requires patience, determination and will to build the country’s future in stability and development, and it is closer to an economic constitution.”
Saleh added, “The paper achieved something clear last year from adopting a road map towards the broader reform path, and this is what we can expect to adopt in maintaining and consolidating Iraq’s economic future without retreat.”
He noted that “the white paper is an indicator of the progress of the economy and the consolidation of the economic life of Iraq, and it is the economic constitution on which any upcoming government curriculum will inevitably be based.”
Saleh concluded: “We evaluate the successes and failures of implementing the white paper in its first year, in order to amend the course or delete or add important procedural issues to optimize the implementation of the reform paper.” Ended 29/R7
Iraq invites Austrian companies, investors and businessmen to enter the Iraqi labor market
Iraq called on Austrian companies, investors and businessmen to enter the large Iraqi labor market, which provides opportunities for investment, production, export and import.
A statement by the Ministry of Foreign Affairs stated that Iraq’s ambassador to Vienna, Bakr Fattah, participated in the virtual economic conference organized by the Arab-Austrian Chamber of Commerce in Vienna, which was attended by representatives of the Ministry of Foreign Affairs, the Ministry of Economy and the Austrian Chamber of Commerce, a number of Arab and foreign ambassadors, senior economic figures and business owners. investors, and entrepreneurs.
In a speech at the conference, the ambassador praised the efforts made by the General Secretariat of the Arab-Austrian Chamber of Commerce in providing opportunities for Arab embassies in Vienna to meet with Austrian company owners, businessmen and investors by holding many conferences, seminars and economic forums throughout the year, in addition to conducting field visits to the market
Working in the Arab countries, with the aim of encouraging the Austrian economy to draw a long-term map of cooperation and partnership with the Arab private sector, to achieve partnerships and implement joint projects that positively reflect on sustainable economic and human development in the Arab region.
He pointed to the efforts of the Iraqi government in providing the appropriate environment for reconstruction and investment in the Iraqi labor market, which is one of the priorities of the Iraqi government in its economic vision, in addition to focusing on the private sector and its support by the government, to reach the economic and development goals within its government program aimed at economic reform policy. And working to implement development plans that target all sectors, foremost of which are infrastructure, oil, electricity, health, agriculture, education, and others, in recognition of the importance of the private sector in creating job opportunities, reducing unemployment and poverty rates, and providing a suitable environment for housing to return the displaced.
The ambassador called on Austrian companies, investors and businessmen to enter the large Iraqi labor market, which provides opportunities for investment, production, export and import. He renewed his invitation to Austrian companies to participate in the private sector and invest in Iraq, assuring everyone that the Iraqi economic environment has become more ready than ever He went on to rebuild and invest, in addition to the available benefits related to the Iraqi Investment Law No. 13/2006 and its amendment.
The Iraqi ambassador in Vienna said: “The Iraqi government decided to grant citizens of European Union countries, who hold valid “ordinary” passports, including Austrian citizens, entry visas at Iraqi airports and border crossings for a period of (60) days without extension, regardless of the Their assets, stressing that this initiative will contribute to facilitating the entry of company owners, businessmen and foreign investors to Iraq, noting that the Iraqi embassy in Vienna is always ready to cooperate and provide Austrian companies with detailed information on the labor market and investment in Iraq. link
Source: Dinar Recaps
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