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Economic Advisor to the Prime Minister: 83% of the monetary mass is almost idle
Time: 11/23/2020 08:30:26 Read: 2,925 times
{Baghdad: Al Furat News} The economic advisor in the cabinet, Dr. Mazhar Muhammad Salih, proposed a number of solutions with the aim of facing the financial deficit in the next year 2021 budget, which was initially estimated at about 35 trillion dinars, putting at the forefront of these proposals, financing the deficit gap Improvement in oil revenues and positive developments that may occur in the energy markets, as well as resorting to external loans.
The head of the Parliamentary Finance Committee, Haitham al-Jubouri, called "during a press release" the government to send the 2021 budget, pointing out that his committee will work to enable the budget law to maximize the state's non-oil revenues and carry out economic and financial reforms.
And counting on the budget law next year, to eliminate the “salary delay crisis” if it is approved within the specified period, and as Ahmad Mulla Talal, the spokesman for the Prime Minister, confirmed this during an interview with “Al-Iraqiya News Channel” when he said,
“We need to approve a budget 2021 quickly so that salaries are not delayed.
Treating impotence
The fiscal deficit in the 2021 budget is a frightening concern in economic circles, but Saleh believes during his speech to Al-Sabah that “addressing the deficit is done through two types of considerations.
If there is a (conservative hypothetical deficit), then the deficit gap during the fiscal year is automatically funded. From improved oil revenues and positive developments that may occur in the energy markets in the coming year.
External borrowing
The economic expert draws attention to the possibility that a (real deficit) may occur, as it requires financing according to the priorities of exchange or spending in the general budget, likely at the same time, Iraq's openness to borrowing from abroad in order to obtain financing, especially from international multilateral financial institutions, Like the World Bank and various international funds, provided that the resources borrowed from abroad are allocated to investment projects that generate income and employ manpower.
Issuing bonds
Regarding internal borrowing, Saleh believes that if government banks reach a point where they cannot lend to the government, then they can go to the issuance of optional bonds that are sold directly to the public and carry specific interest and privileges, indicating that “83% of the current monetary mass (as financial wealth is almost idle) The amount is nearly 50 trillion dinars.
He pointed out that "this block is still leaking to the public, and lies outside the banking system in the form of hoardings cut off from the income cycle in the economy and does not deal with the banking system, which means that there are large suspended financial surpluses that can be borrowed and cover the budget deficit."
Saleh pointed out that “bonds are a government debt instrument in dealings, mortgages, and even tax payments or any other financial obligations, as these sovereign bonds can be taken as guarantees for borrowing and others, in addition to being a government debt instrument of excellent class, which is a context in place in all major markets. Money in the world to finance the budget, especially the investment side.
Ali al-Rubaie
Economic Advisor to the Prime Minister: 83% of the monetary mass is almost idle
Time: 11/23/2020 08:30:26 Read: 2,925 times
{Baghdad: Al Furat News} The economic advisor in the cabinet, Dr. Mazhar Muhammad Salih, proposed a number of solutions with the aim of facing the financial deficit in the next year 2021 budget, which was initially estimated at about 35 trillion dinars, putting at the forefront of these proposals, financing the deficit gap Improvement in oil revenues and positive developments that may occur in the energy markets, as well as resorting to external loans.
The head of the Parliamentary Finance Committee, Haitham al-Jubouri, called "during a press release" the government to send the 2021 budget, pointing out that his committee will work to enable the budget law to maximize the state's non-oil revenues and carry out economic and financial reforms.
And counting on the budget law next year, to eliminate the “salary delay crisis” if it is approved within the specified period, and as Ahmad Mulla Talal, the spokesman for the Prime Minister, confirmed this during an interview with “Al-Iraqiya News Channel” when he said,
“We need to approve a budget 2021 quickly so that salaries are not delayed.
Treating impotence
The fiscal deficit in the 2021 budget is a frightening concern in economic circles, but Saleh believes during his speech to Al-Sabah that “addressing the deficit is done through two types of considerations.
If there is a (conservative hypothetical deficit), then the deficit gap during the fiscal year is automatically funded. From improved oil revenues and positive developments that may occur in the energy markets in the coming year.
External borrowing
The economic expert draws attention to the possibility that a (real deficit) may occur, as it requires financing according to the priorities of exchange or spending in the general budget, likely at the same time, Iraq's openness to borrowing from abroad in order to obtain financing, especially from international multilateral financial institutions, Like the World Bank and various international funds, provided that the resources borrowed from abroad are allocated to investment projects that generate income and employ manpower.
Issuing bonds
Regarding internal borrowing, Saleh believes that if government banks reach a point where they cannot lend to the government, then they can go to the issuance of optional bonds that are sold directly to the public and carry specific interest and privileges, indicating that “83% of the current monetary mass (as financial wealth is almost idle) The amount is nearly 50 trillion dinars.
He pointed out that "this block is still leaking to the public, and lies outside the banking system in the form of hoardings cut off from the income cycle in the economy and does not deal with the banking system, which means that there are large suspended financial surpluses that can be borrowed and cover the budget deficit."
Saleh pointed out that “bonds are a government debt instrument in dealings, mortgages, and even tax payments or any other financial obligations, as these sovereign bonds can be taken as guarantees for borrowing and others, in addition to being a government debt instrument of excellent class, which is a context in place in all major markets. Money in the world to finance the budget, especially the investment side.
Ali al-Rubaie
