Member in Parliamentary Finance: The government is in trouble .. it did not obtain loans from abroad, and the budget was submitted to borrow internally
09/16/2020 09:34 am
Baghdad Today- Follow up
Jamal Cougar, a member of the Finance Committee in the Iraqi Parliament, a member of the Kurdistan Islamic Union bloc, set a period for approving and completing the draft general budget for the current year, which will reach Parliament today.
Cougar said in a press statement, "The draft federal budget law arrives from the Iraqi Cabinet to Parliament today, to be studied and read for a first reading, next Saturday, September 19."
And Cougar, that "the Iraqi government obtained 15 trillion Iraqi dinars from internal borrowing, and fully satisfied it, while it was unable to obtain the external borrowing of 5 billion US dollars."
He added, "Iraq's failure to obtain the amount of external borrowing put the government in a crisis, so the federal budget was submitted to Parliament for approval, so that they could borrow more from home and abroad."
Cougar explained, "The general budget after arriving in the House of Representatives passes through 3 stages: a first reading, a second reading, then a vote, according to the law, the two readings and voting within a period of time not less than two weeks, so in all cases the budget is delayed by Parliament at least 14 days."".
He pointed to the reasons why Iraq was unable to obtain external borrowing, saying that "the International Monetary Fund and the World Bank, and the countries when they give loans, have harsh conditions, because they impose agendas so the Iraqi government did not agree."
He pointed out that "other countries that have given loans and grants to the Iraqi state before, Iraq has not been able to achieve its goals or objectives or the purpose of borrowing, so the conditions for external borrowing are either direct implementation or allocating funds for specific projects, while the government wants them to pay salaries."
Yesterday, Tuesday, a member of the Parliamentary Economic and Investment Committee, Ali Al-Lami, revealed the percentage of the budget deficit for the current year 2020 for the next three months.
Al-Lami said, in an interview with (Baghdad Today), that "the budget deficit for the next three months of this year reached 45%, and it is considered a very high percentage."
He added, "The budget was devoid of any investment financial allocations and was limited to paying salaries in addition to financial allocations for health and financing the ration card."
Al-Lami explained, "The budget will be financed from the government’s revenues, in addition to the financial loans voted by the House of Representatives."
Last Monday, the spokesman for the Prime Minister, Ahmed Mulla Talal, announced the approval of the draft General Budget Law 2020, and sending it to Parliament.
Talal said in a tweet, on the Twitter platform, followed by (Baghdad Today), that “in order to organize the spending process and secure the necessary expenditures for the remaining three months of the fiscal year, and as a commitment from the government to the decision of the House of Representatives, the Cabinet approved the draft Federal Budget Law 2020, And send it to the House of Representatives."