Calls to diversify revenues and develop collection systems
Monday 13 September 2021 175
Baghdad: Haider Falih Al-Rubaie
Economists stressed the need to seek to diversify the country’s financial resources, and work to activate the non-oil productive sectors, especially industrial and agricultural,
warning of the dangers of maintaining the “rentier economy” in financing public budgets,
and while they stressed that the process of diversifying revenues depends primarily on developing At the same time, they demanded the importance of moving the industrial wheel in the country and supporting the private sector.
The government is working continuously to “revive” the economic reality by supporting the private sector and enhancing its capabilities, which was confirmed earlier by Minister of Planning Khaled Batal, who announced the preparation of a number of economic laws that will contribute to supporting the private sector.
The economic expert, Manar Al-Obaidi, pointed out during his speech to Al-Sabah that “despite the government’s adoption of a policy of diversifying non-oil revenues in the 2021 budget, amounting to 20 trillion dinars, representing 20% of total revenues, the actual figures still show the total dependence on Oil revenues,” noting that
“the latest data issued by the Ministry of Finance showed that non-oil revenues amounted to only 8% of total revenues, and did not achieve more than 3.9 trillion Iraqi dinars, although they achieved revenues during the same period in 2019.” 4.2 One trillion Iraqi dinars, and accordingly, it is not expected that non-oil revenues will achieve more than 7 trillion dinars during the current year.”
Threatening the economy
Al-Obaidi believes, "The continued dependence on oil revenues in a large way represents a challenge for the state, especially as it is linked to external factors related to the volume of demand and supply, as well as price fluctuations, which poses a threat to the Iraqi economy."
The economist urged the need to “diversify state revenues in order to stabilize the economy,”
calling for “activating the productivity of these revenues, which is mainly represented by customs tariffs, as well as revenues coming from producing and profitable public sector companies, as well as moving the field of tax collection, which is still declining compared to the previous year. previous years.”
Al-Obaidi explained that the process of diversifying revenues depends primarily on the
development of collection and follow-up systems, and
control of border crossings, in addition to
trying to exploit other natural resources such as sulfur, phosphate and the rest of the minerals available in Iraq and
working to establish strategic industrial projects capable of providing the state with large revenues.
He urged the economist, "to set up an investment fund to provide a new type of revenue very quickly, especially as it depends on investing in international companies that achieve high profits and risk rates that are somewhat low."
Diversification of revenue
The economic affairs specialist, Ali Karim Ithib, stressed the need to work on “diversifying financial revenues, and moving away as much as possible from the oil rent, which constitutes about 98% of the volume of financial revenues of the federal budget.”
Iheeb explained, "Iraq has the ingredients that qualify it to be among the great economies in the world,"
noting at the same time that "the industrial sector constitutes 29% of the volume of GDP, while the agricultural sector constitutes 30% and tourism 40%,"
indicating the possibility that Some industries such as “phosphates, sulfur, papermaking and plastics” play a pivotal role in increasing the country’s non-oil financial revenues.