Is the financial crisis in Iraq has become chronic?
Economy | 03:51 - 09/12/2020
Follow-up - Mawazine News
The economic crisis returns to the forefront of the Iraqi scene, with a new drop in oil prices, which puts the government of Mustafa Al-Kazemi in front of a new test in the possibility of securing the salaries of employees and retirees, since the financial crisis still exists without any government solutions.
Oil and non-oil revenue funds are not sufficient to cover operational expenditures, as the total revenues for the past month reached about four billion dollars, while the government actually needs to pay the expenses, including salaries, to about six billion dollars per month.
Will Iraq once again resort to borrowing?
The economic expert, Saleh Al-Hamashi, said in an interview reported by the Russian agency Sputnik, that "the financial crisis is still continuing, although it is going through a lull, and every year there are problems, from new labor, the crisis with the Kurdistan region, debt problems, population increase and the electricity crisis,
"Which leads to an increase in state expenditures."
Al-Hamashi added, "Borrowing will continue to haunt the Iraqi state if the government does not find real solutions, and next year there will be a salary crisis.
The economic identity has not been defined for Iraq, and the financial crisis is not related only to salaries that do not constitute more than 39% of the budget."
He added, "The economic reform paper will be a paper of administrative reforms more than economic, by focusing on border crossings and taxes,
but it is supposed to focus on productive economic sectors that can provide real financial returns or absorb manpower." Ended 6/29 N