Home
[You must be registered and logged in to see this link.]
Financial life constriction” .. What are the repercussions of the absence of the budget on the local market?
Saturday, 30 April 2022 5:37 PM
National News Center / Special
The financial advisor to the caretaker government, Mazhar Muhammad Salih, identified, on Saturday, the repercussions of the absence of the general budget for 2022 on the Iraqi economy and the local market.
Saleh said in a statement to the National News Center. The absence of the legislation of the General Budget Law will lead to a contraction of financial life and commitment to similar financial behaviors for the previous year, i.e. 2021, without the ability to address the emerging economic problems in the current year, i.e. 2022, and it is called a contraction of financial behavior towards the minimum in the course of financial policy, which usually draws its limits based on The provisions of the Financial Management Law No. 6 of 2019 as amended.
He added that "in the event of delay in approving the federal general budget law until the end of the fiscal year 2022, the Iraqi financial policy will deal in spending or disbursement from the proceeds of cash revenues and all their flows, whether resulting from oil revenues currently or others in line with the provisions of Article 13 / first of the Financial Management Law Federal No. 6 of 2019 the aforementioned rate, which provides for the exchange rate of 12/1 of the total actual current expenditures that were achieved in the previous fiscal year 2021.”
He pointed out that “according to the text of Article 19/Second of the Federal Financial Management Law above, if the actual revenues exceed the total expenses or expenditures, including financing the established deficit, the surplus amount is deposited in a (sovereign fund) provided that there is a budget law, and
otherwise, the financial surpluses are what It was not decided to deposit it in a temporary reserve account, as
it will undoubtedly be an opening balance in whole or in part in the federal general budget for the year 2023.”
And he indicated that “financial behaviors (will shrink) in light of the data of the year 2021, despite the realization of financial savings in the absence of legislation of a law for the general budget.
Thus, the decisions of the market or the private sector in investment and economic activity will live in a state of uncertainty in making decisions that drive or contribute to the growth of The national economy,
as the annual public expenditures planned under the budget law represent the major demand force in the overall economy,
as their effects reach 85% of the joints of the national economy when the public budget is enacted and it is with its full powers and planned financial actions.
Financial life constriction” .. What are the repercussions of the absence of the budget on the local market?
Saturday, 30 April 2022 5:37 PM
National News Center / Special
The financial advisor to the caretaker government, Mazhar Muhammad Salih, identified, on Saturday, the repercussions of the absence of the general budget for 2022 on the Iraqi economy and the local market.
Saleh said in a statement to the National News Center. The absence of the legislation of the General Budget Law will lead to a contraction of financial life and commitment to similar financial behaviors for the previous year, i.e. 2021, without the ability to address the emerging economic problems in the current year, i.e. 2022, and it is called a contraction of financial behavior towards the minimum in the course of financial policy, which usually draws its limits based on The provisions of the Financial Management Law No. 6 of 2019 as amended.
He added that "in the event of delay in approving the federal general budget law until the end of the fiscal year 2022, the Iraqi financial policy will deal in spending or disbursement from the proceeds of cash revenues and all their flows, whether resulting from oil revenues currently or others in line with the provisions of Article 13 / first of the Financial Management Law Federal No. 6 of 2019 the aforementioned rate, which provides for the exchange rate of 12/1 of the total actual current expenditures that were achieved in the previous fiscal year 2021.”
He pointed out that “according to the text of Article 19/Second of the Federal Financial Management Law above, if the actual revenues exceed the total expenses or expenditures, including financing the established deficit, the surplus amount is deposited in a (sovereign fund) provided that there is a budget law, and
otherwise, the financial surpluses are what It was not decided to deposit it in a temporary reserve account, as
it will undoubtedly be an opening balance in whole or in part in the federal general budget for the year 2023.”
And he indicated that “financial behaviors (will shrink) in light of the data of the year 2021, despite the realization of financial savings in the absence of legislation of a law for the general budget.
Thus, the decisions of the market or the private sector in investment and economic activity will live in a state of uncertainty in making decisions that drive or contribute to the growth of The national economy,
as the annual public expenditures planned under the budget law represent the major demand force in the overall economy,
as their effects reach 85% of the joints of the national economy when the public budget is enacted and it is with its full powers and planned financial actions.
