Saleh: Iraq is on the verge of an economic recovery and programs for investment projects
Financial Adviser to the Prime Minister, Dr. Mazhar Muhammad Salih,
money and business
Economy News - Baghdad
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, expressed his optimism about the expected deficit levels in the next year's budget 2022.
Saleh said in a statement to the official "Al-Sabah" newspaper, "There are developments in the features of the expected general budget for 2022, which adopted an oil price of about $50 per barrel, for the purposes of calculating average oil revenues throughout the next year in light of a daily export capacity of more than three million barrels. oil".
He added, "In the event that the spending ceiling is increased by 10% over the current ceiling in the 2022 budget, this means that there is a precautionary deficit that will be approved by the budget to avoid undesirable fluctuations in oil prices during the next fiscal year."
According to the foregoing, the financial advisor to the Prime Minister believes that “the hypothetical deficit will be 20% of the total total spending ceiling, and about 8% of GDP, but the average price of a barrel of oil, if it continues to remain stable at $70, the budget will be in Mostly an equilibrium situation, and the default deficit gap will be automatically canceled from the positive oil revenue differentials.
Saleh pointed to the continuity of "the next year's budget 2022 in its other aspects, in offering a medium-term program for investment projects, with commitment to the program's costs for important and strategic projects, and according to its social priorities, especially those that affect the well-being of society and its economic priority, being income-generating and operating the business cycle in the economy."".
The next budget will also seek, according to Saleh, to “maximize the optimal spending on investment projects with the aim of achieving a growth rate in the gross domestic product that exceeds the population growth rate, and at least 5% or more, which will lead to an accelerated reduction in unemployment rates as well.”
He stressed that "these steps will lead to economic recovery in the country."
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