Loans, austerity and fiscal deficits

Loans, austerity and fiscal deficits

Monday 08th February 2021 10

Mustafa Mohamed Ibrahim

After our review of the Iraqi financial budget law for 2021 (wound balancing) and the arrival of the budget law to the House of Representatives, the law was read in a first reading, which led to holding seminars and discussions, whether in attendance or via electronic platforms (zoom, meeting), as well as television interviews and permits All media aims to correct the budget path in its current form that is not acceptable to the specialists in economic affairs, as the financial deficit in it reached 71 trillion Iraqi dinars, equivalent to 49 (billion dollars) according to the new exchange rate. Availability of job grades as well as the important question in popular circles, why does public finance speak of austerity and a deficit of millions in the budget and the continuation of government and private banks to grant loans and advances to the public, which means the availability of financial liquidity in the public finances, which is what is possible and supposed to stop these loans and advances and transfer them to Supporting and financing investment projects.


As we note the absence of austerity in the general budget for 2021, but rather large spending and the lack of financial discipline in spending (financial strengthening in spending), which confirms to everyone the availability of financial liquidity in public finances in light of this budget and the continuation of public finances in the trend towards borrowing, whether internal or external.


Which makes Iraq in a continuous financial crisis if this budget has passed in its current form, so public finances should direct government banks to temporarily stop loans and advances, as well as use the principle of austerity effectively by reducing unnecessary spending, especially spending commodity supplies in the 2021 budget, and the estimated At an amount of 16.708 trillion dinars, and service supplies amounting to 2.896 trillion dinars compared to the year 2019, the commodity requirements included 8 trillion dinars, and service supplies included 2 trillion dinars, which calls for the use of financial discipline (financial strengthening) in an effective and rapid manner, which leads to the acceleration of the approval of the 2021 budget; This is to make the financial situation of the country proceed properly and is acceptable by specialists in economic affairs and the general public, whose first and last concern is the final approval of the budget and its publication in the Official Gazette, which leads to an appropriate economic situation in the operational spending and position on salaries, in conclusion, the hope of the Iraqi people remains in the House of Representatives Especially the Parliamentary Finance Committee by not approving the budget in its current form except after making adjustments, especially by reducing the value of the Iraqi dinar and increasing the general level of prices that affected the ordinary citizen, as well as holding several continuous meetings by the Finance Committee through setting up sub-committees emanating from the Parliamentary Finance Committee in order to hold Continuous meetings with all ministries and relevant authorities in order to reduce spending and reduce the financial deficit, and we hope to temporarily stop loans and advances until the financial situation improves.


For the country.




https://alsabaah.iq/41038/%D9%82%D8%B1%D9%88%D8%B6-%D9%88%D8%AA%D9%82%D8%B4%D9%81-%D9%88%D8%B9%D8%AC%D8%B2-%D9%85%D8%A7%D9%84%D9%8A