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Al-Kazemi’s advisor sets priorities for investing financial savings and increasing revenue
Economie Yesterday, 17:50
Baghdad - INA - Nassar Al-Hajj
, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified, today, Friday, the priorities for investing financial savings and the increase in total revenues. Saleh said, to the Iraqi News Agency (INA), that
"the increase in total revenues, based on oil revenues, is subject when it is outside the limits of financing the expenditures set forth in Law No. 2 of 2022, that is, the Emergency Support Law for Food Security and Development, or exceeds the funding limits set forth in accordance with Provisions of Article (13) / Second of the effective Financial Management Law No. (6) of 2019 disbursing 12/1 of the actual current expenditures realized in the fiscal year 2021. He added,
"Based on the provisions of the two laws above, and when actual revenues exceed expenditure estimates and after covering the actual deficit, if any in the emergency law as mentioned, the surplus is directed and employed in the budgets of the following years through a (sovereign fund) as stipulated by the provisions of Article 19 of the Financial Management Law.
The aforementioned, provided that legal adaptation is available for the current fiscal year’s conditions because the financial savings that go to the sovereign fund’s account is required under the applicable Federal Financial Management Law to have a law for the annual general budget, which does not exist for the year 2022. He continued,
"Nevertheless, this means, in all cases, the generation of official reserves that are used for spending in the coming years through a sovereign saving fund inevitably,
and it is managed in accordance with international best practices in managing and investing official reserves and benefiting from the investment returns of these official foreign reserves or disposing of them."
In financing the budgets of the coming years and achieving the so-called financial sustainability, as confirmed by the Central Bank of Iraq in its recent statements about the management of the Fund. He continued,
"Certainly, the priority will go in an important aspect towards financing investment projects that contribute to the development of national income and the economic prosperity of our country." He explained,
“If the fiscal year 2022 ends, for example, without approving the general budget, and starting spending at a ratio of 1/12 of the actual current expenditures for the past year 2021, the financial surpluses will go to a fund or reserve account that represents the sovereign wealth, and certainly the priority will go.” Towards the sustainability of financing investment projects that contribute to the development of national income and the economic prosperity of our country. He concluded by saying:
"Despite the foregoing, there is a fundamental development that came in the effective Federal Financial Management Law that was amended in 2020, whereby governorates that did not benefit from their share of the allocation for investment projects were allowed to keep those allocations in the following year in a trust account to resume the exchange.
The approved investment projects shall do so in the following year without interruption, even in the event of a delay in approving the budget.
Al-Kazemi’s advisor sets priorities for investing financial savings and increasing revenue
Economie Yesterday, 17:50
Baghdad - INA - Nassar Al-Hajj
, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified, today, Friday, the priorities for investing financial savings and the increase in total revenues. Saleh said, to the Iraqi News Agency (INA), that
"the increase in total revenues, based on oil revenues, is subject when it is outside the limits of financing the expenditures set forth in Law No. 2 of 2022, that is, the Emergency Support Law for Food Security and Development, or exceeds the funding limits set forth in accordance with Provisions of Article (13) / Second of the effective Financial Management Law No. (6) of 2019 disbursing 12/1 of the actual current expenditures realized in the fiscal year 2021. He added,
"Based on the provisions of the two laws above, and when actual revenues exceed expenditure estimates and after covering the actual deficit, if any in the emergency law as mentioned, the surplus is directed and employed in the budgets of the following years through a (sovereign fund) as stipulated by the provisions of Article 19 of the Financial Management Law.
The aforementioned, provided that legal adaptation is available for the current fiscal year’s conditions because the financial savings that go to the sovereign fund’s account is required under the applicable Federal Financial Management Law to have a law for the annual general budget, which does not exist for the year 2022. He continued,
"Nevertheless, this means, in all cases, the generation of official reserves that are used for spending in the coming years through a sovereign saving fund inevitably,
and it is managed in accordance with international best practices in managing and investing official reserves and benefiting from the investment returns of these official foreign reserves or disposing of them."
In financing the budgets of the coming years and achieving the so-called financial sustainability, as confirmed by the Central Bank of Iraq in its recent statements about the management of the Fund. He continued,
"Certainly, the priority will go in an important aspect towards financing investment projects that contribute to the development of national income and the economic prosperity of our country." He explained,
“If the fiscal year 2022 ends, for example, without approving the general budget, and starting spending at a ratio of 1/12 of the actual current expenditures for the past year 2021, the financial surpluses will go to a fund or reserve account that represents the sovereign wealth, and certainly the priority will go.” Towards the sustainability of financing investment projects that contribute to the development of national income and the economic prosperity of our country. He concluded by saying:
"Despite the foregoing, there is a fundamental development that came in the effective Federal Financial Management Law that was amended in 2020, whereby governorates that did not benefit from their share of the allocation for investment projects were allowed to keep those allocations in the following year in a trust account to resume the exchange.
The approved investment projects shall do so in the following year without interruption, even in the event of a delay in approving the budget.
