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A parliamentary statement proposes a new and only option to reduce the dollar exchange rate before approving the budget

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A parliamentary statement proposes a new and only option to reduce the dollar exchange rate before approving the budget

14,054 Economy 01/18/2021 21:17
Baghdad Today - Follow-up

Representative Ahmed Hama Rashid - a member of the Parliamentary Finance Committee revealed a single option before Parliament to change the exchange rate of the dollar against the dinar and reduce it in response to popular demands

Rashid said in a televised interview that (Baghdad Today) followed that "until now there is no final and definitive agreement to keep the deductions made by the government on employees' salaries in the budget or delete them."

He added, "In the event that the deductions are removed, parliament must work to find a financial alternative to compensation to prevent the increase in the deficit."

While affirming that "no change will occur to the exchange rate fixed in the budget because it is outside the authority of the parliament and exclusively from the monetary authority," he pointed out that

"there is only way to change it by meeting with the Ministry of Finance and proposing ideas to reduce the exchange rate because it is the decision maker in this regard, not Parliament, and this is." One of the proposals, but frankly, we believe that the exchange rate is irreversible. "

He pointed out that "the Parliamentary Finance Committee intends to discuss the Ministry of Oil by raising the price of the exported barrel from 42 dollars as shown in the budget to 45 dollars to reduce the deficit in it.

The price of oil has increased and Iraq is currently selling it above 50 dollars."

In another aspect, he indicated, "For state employees, the Ministry of Finance does not know their exact number, and this is a disaster that Iraq has lived through for a long time."

The decision of the Finance Committee in the House of Representatives, Ahmed Al-Saffar, confirmed that determining the exchange rate of the dollar against the Iraqi dinar is the task of the Central Bank, while indicating the position of Parliament on this policy.

Ahmed Al-Saffar said, in a televised interview that she followed (Baghdad Today), that "determining the exchange rate of the dollar is the task of the Central Bank, and it is the only one supervising the monetary system, the monetary mass, and the exchange rate, and we, as Parliament, have no right to interfere in the price."

Al-Saffar added, "Changing the price according to economic theory is politically feasible, but with conditions including the availability of a productive apparatus, agriculture and an active industry."

Meanwhile, the head of the Al-Wataniya bloc, MP Kazem Al-Shammari, spoke about the approach closest to his adoption with regard to deductions from employees' salaries in the 2021 budget.

Al-Shammari said in a televised statement that (Baghdad Today), that "the ongoing discussions in the House of Representatives tend to determine the subsistence limit for legally employed salaries of one million dinars, and tax deductions begin from the salary of one million and above."

He added that "there is a tendency to completely cancel deductions from employees because the high and clear spending in the budget means that there is no need for the imposed deductions, and this is the closest approach to adopting it," noting that

"the deduction from salaries did not add a large amount to the budget."

Al-Shammari added that "the budget law includes unimportant issues that have been crammed into it, among which is the obligation of ministries to purchase materials from the public sector, and this is not legally permissible," noting that

"the budget law involved great exploitation at the expense of the law."

On the continuation of smuggling through the border outlets, Al-Shammari said, "The process continues through the unofficial outlets, and this leads to striking local production, which is supposed to be supported by all means after raising the exchange rate in the budget."

He pointed out that "the smuggling issue requires national support and not just governmental measures to strike the authorities supervising smuggling at these outlets, which are often politically supported."

He indicated that "there are families who control the port sites, along with the political and partisan parties, and the government is aware of this."

Al-Shammari pointed out that "the ports and border crossings represent the real field for political forces to compete."

Earlier, the (Baghdad Today) News Agency published, Tuesday (December 29, 2020), the details of the schedule of deductions for state employees' salaries, within the current year’s budget, as well as the rate of deduction from each salary.

According to the tables that came in the budget and received it (Baghdad Today), the deduction will start for someone whose salary is more than 550 thousand dinars, with a deduction rate of up to 5 thousand dinars from his monthly salary as a tax, and 10 thousand dinars are deducted from the salary of the employee who receives 600 thousand dinars, and 25 are deducted One thousand dinars from the salary holder 750 thousand dinars.

Deduction from the aforementioned salaries continues to the higher salaries, as the deduction rate increases all that increases the employee's monthly salary, bringing the deduction to the highest salary in the state, which is 10 million dinars, so that this salary is deducted two million and 700 thousand dinars, so that the net salary is 7 million and 300 thousand dinars.

The government that conducted this fiscal policy to reform the economy, as it puts it, considers that this deduction is a monthly tax on every salary, and the salaries of those who earn 500 thousand dinars or less will not be deducted.

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