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Indicators of the ability to save money without borrowing are increasing .. What is the mystery behind the insistence on borrowing!

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Indicators of the ability to save money without borrowing are increasing .. What is the mystery behind the insistence on borrowing!


Reports
Economy News _ Baghdad


Not a little while ago, indicators and statements from the legislative and executive authorities continued, which exposed from time to time, the possibility of paying salaries in other ways and solutions without the need to borrow, which began to raise questions and raise questions about the reason for the government's insistence on borrowing and what is behind this trend despite the possibility Availability of salaries.

September salaries ... the first question mark

It is not far from what happened last September, when Finance Minister Ali Allawi surprised everyone by releasing salaries despite the Parliament not voting on the borrowing law, after a long round of tensions between the legislative and executive authorities over the necessity of borrowing.

Allawi later came out with a statement confirming that securing September salaries Without borrowing it came through "financial engineering", and that this matter the government will not be able to follow except for one time, and that the salaries of the coming months are directly linked to the approval of the House of Representatives to borrow.

“Difficult” solutions ... may save salaries without borrowing

However, Allawi, in other statements, stressed the possibility of actually providing salaries without the need to borrow, noting that providing salaries is linked to Parliament's approval to borrow, and if this is not done, we will have to provide salaries in other ways, but with harsh solutions.

Indications of the possibility of providing salaries without borrowing began to increase day by day, as Prime Minister Ahmed Mulla Talal's spokesperson ignited the popular atmosphere as well as the corridors in the House of Representatives when he revealed in a press conference that the government had "two options" to provide salaries.

Mulla Talal said, in a press conference held in Baghdad, that "the salaries of employees will be funded through two options. The first is passing the fiscal deficit law or applying other government solutions in the event that the law is not passed."

Question marks invade Parliament

Haytham al-Jubouri, head of the Parliament’s Finance Committee, in an urgent response to Mullah Talal’s recent statement, addressed an official letter to the Council of Ministers to inquire about the Ministry of Finance’s ability to find solutions to provide employees’ salaries by dispensing with resorting to the borrowing law.

A document issued by Al-Jubouri's office stated, “As long as there is a possibility to cover salaries without the need to legislate the deficit financing law and impose new financial burdens on the state that cast a shadow over the economic situation ..

Please indicate your opinion on dispensing with legislation of the fiscal deficit financing law so that we can focus on economic reforms. The desired”.

This move prompted the Finance Committee, a spokesman for Prime Minister Ahmed Mulla Talal, to respond quickly by tweeting to deny what he had spoken at the press conference, stressing that “the state’s revenues are insufficient to pay salaries, and on this basis, the government requested from Parliament additional borrowing authority to fill the financing gap.” Until the 2021 budget presentation.

Previous parliamentary indicators .. The minister has powers

Earlier, a member of the Parliamentary Finance Committee, Jamal Cougar, had made it clear in press statements that the salaries of the current month had nothing to do with the government deficit financing bill and would not be delayed if it was passed late.

He indicated that “the issue of linking employees’ salaries to the fiscal deficit financing project that the government sent to Parliament and it was read in a first reading is incorrect,” indicating that

“the Minister of Finance has the authority to borrow temporarily by issuing treasury bills to obtain the amount he needs to fill the deficit in financing the month’s salaries. Present".

Why borrow?


Cougar considered that "linking securing salaries for state employees to approving the borrowing law is an attempt intended to charge the House of Representatives with the failure of the government in its inability to find immediate solutions and remedy the fragile economic situation."

Cougar explained that "it is assumed that the law dealing with deficits or the so-called borrowing law is concerned with running the country's financial affairs in the operational aspects and the necessary expenditures in the field of stalled projects and paying off critical debts and it is not a matter of employee salaries."

For his part, the specialist in economic affairs, Durgham Muhammad Ali, considered that "the government's use of the employee salaries file to pressure the passage of the borrowing law raises suspicion about the content of the law."

Muhammad Ali said in a press statement that the laws related to external borrowing must be carefully studied and devised for real economic feasibility, and if borrowing for salaries was limited, the amount would have been limited and did not need a law.

He pointed out that the government's behavior in linking the delivery of salaries with the approval of this law puts the Ministry of Finance in the circle of accusations that the borrowing process raises the question of why a large amount is requested despite the close of the fiscal year, and why salaries are linked to it.


Number of observations 43 Date of addendum 10/29/2020

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