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A government consultant reveals: The government borrowed 3 trillion dinars to pay the salaries this month

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed on Sunday (May 24, 2020) that the emergency cell for financial reform set up by the Council of Ministers operates in two directions, the first is the circulation of money to manage monthly financing, .and the second is payment towards economic reform

Saleh said in a press statement, “There are monthly ruling expenses in Iraq that are seven (7) trillion dinars as a minimum, including expenses payable for more than forty-six (46) items, in the forefront of which are the salaries of employees, retirees and social welfare,” explaining that “the size of salaries from Governing expenses are estimated at 5.7 trillion .(dinars (five trillion and seven hundred billion dinars

He added that “the proceeds of our sales of oil range from (24 to 25) dollars per barrel, meaning that the monthly revenues amount to one and a half trillion dinars, to which other revenues (non-oil revenues) are added, such as taxes and customs, about two hundred billion Iraqi dinars,” noting that “our monthly revenues (Oil and non-oil) amount to less than (2) ” .trillion Iraqi dinars regarding the requirements of seven trillion per month

The financial advisor explained that “the government borrowed from the banks of Al-Rafidain and Al-Rasheed and the Iraqi Trade Bank about (3) trillion dinars to pay salaries for the month of May,” stressing that “there is a deficit in the operational budget such as paying “.debts, expenses of lecturers, night guards, contractors receivables, and others

He continued, “The government in the month of May was able to cover only the salaries of employees, retirees and social welfare due to the lack of revenues,” noting that “there is a trend towards internal borrowing to pay the salaries of workers in the state for the month of “.June

Saleh stressed that “there are negotiations with international banks and banks to borrow from them to pay the deficit in the operational budget, but these negotiations need time” indicating that “in the long term and the coming months there is an intention to issue a . “national bond (borrowing from citizens) at a high interest rate with many concessions

He pointed out that “the emergency committee is studying the possibility of legislating the federal budget law for the remainder of the fiscal year, but in the event that this budget is not legislated, the government will issue the final accounts with a law called the status quo to clarify revenues and expenditures for the year 2020 and send it to the parliament for “.approval

And the government counselor stated that “the reduction of higher salaries depends on the financial situation in the month of June,” explaining that “the Financial Reform Committee will address the large salaries in the Iraqi state because of the lack of revenue, which is a reform opportunity.” Source