KTFA (Frank26, MilitiaMan & Samson)

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Samson: A parliamentary bloc lists 36 amendments to the budget law … Get to know them

19th January, 2021

The Parliamentary Approach Bloc confirmed, on Tuesday, that it has submitted the most important amendments to be achieved in the 2021 budget.

The head of the bloc, MP Ammar Tohme, said in a statement that Mawazine News received a copy of, that the most important paragraphs to be amended in the draft budget law are:

  1. Reducing total spending to (90) trillion dinars.
    2. With regard to the rate of oil exports, an increase in the oil delivered by the region to include the entire product to SOMO.
    3. Reducing the exchange rate to (1,300) dinars per dollar.
    4. Operating expenditures are (82) trillion dinars, and investment (8) trillion dinars,
    5. It is absolutely forbidden to finance the deficit from the Central Bank.

6. Debt scheduling and repayment of internal ones.
7. Cancellation of new loans for the purpose of introducing new investment projects.
8. The amount of the contingency reserve is reduced to the initial required number, which is (160) billion dinars, instead of the current proposed amount (500) billion dinars.

9. Necessary expenditures (salaries of employees with the new newly created appointments 53 trillion + social care, including the care network, ration card, wheat and rice support, the Ministry of Immigration, civilian and military retirement pensions and their bonuses (25) trillion + goods and services for the security and defense sector (484) billion dinars + goods and services for the Ministry of Health And its directorates (1.7) trillion + goods and services for the energy sector (3) trillion dinars, so the total necessary spending will be (82) trillion dinars, and let’s assume the payment of debts (4) trillion with an additional trillion, so the final total becomes (87) trillion dinars.
10. Abolish the paragraph Third of the fourth article that grants the prime minister of the region the authority to transfer between budget spending units.
11. Likewise, Paragraph Four of Article Four, which gives ministers the authority to transfer between service and commodity expenditures and maintenance of assets, is also canceled, because it is assumed that these required sums express a realistic need in their resource, so how can they be transferred unless they are not necessary from the beginning.
12. Paragraph V of Article 4, which grants ministers to amend the budget of self-financed departments, shall also be canceled.
13. Article Five of the Budget We stipulate that the controls adopted in the disbursement of emergency reserve allocations are mentioned in the budget law even in its general title and not in the instructions for implementing the budget.
14. The authority granted to the Minister of Reconstruction and Municipalities to transfer between self-resources to balance institutions is revoked.
15. Article 10, Paragraph Two, which mentions the categories of sovereign expenditures, must be added to it (the Ministry of Oil, the Ministry of Transport, the Ministry of Water Resources, the inclusion of the security and defense sector in all its ministries and institutions within the sovereign expenditures., As well as the emergency reserve.
16. Abolishing the first paragraph of Article ( 11) which calculate the dues of the Kurdistan region for the previous years from 2014 to 2019 despite not having delivered the oil and non-oil revenues
17. Paragraph Second – a of Article (11) is amended to be (The region is obligated to deliver 460,000 barrels per day to SOMO, in case of an increase. Producing it for this amount is obliged to deliver it also to the National Oil Marketing Company (SOMO)
18. Add Article Seven of the Deficit Financing Law to be the governing body in determining the relationship between the region and the federal authority in revenue management and its distribution to Iraqis.
19. Paragraph III (a, b, and c) that allows the federal authorities to bear the region’s loans and financial obligations that it concluded in the years (2014 to 2019) shall be canceled.
20. Article (13) of the Budget Law allows the Minister of Finance to add allocations to extinguish the advances of previous years after being audited by the Office of Financial Supervision and approval by the Council of Ministers .. Such a matter requires the Parliament to be informed and its decision of approval or rejection.
21. Article (14) – Third – A – It is permissible for ministries and entities not associated with a ministry and the governorates to contract with experts and specialists, and Paragraph (b) stipulates that the contract be through advertising, and then grants an exception from the advertisement clause!
22. Article (15) – second. The mobile phone companies must be required to pay the amounts, fines and financial obligations they owe within thirty days, otherwise penalties will be imposed that reach the withdrawal of the license from them.
23. Include a text in the budget obliging to review the contracts of mobile phone companies to achieve the highest benefit to the Iraqi state and to cancel what causes the loss of realistic revenues.
24. Include in the budget a text that requires reviewing the oil licensing rounds in a way that achieves the highest benefit to Iraq, as stipulated in the constitution, as well as canceling the partnership contracts concluded by the region with foreign oil companies.
25. Article (16) Second – The application of electronic collection through partnership with the private sector is incorrect, and previous experiences indicate that the state incurred losses in favor of these companies.
26. Article (17) is canceled because it permits the employee to be seconded to work in the collection companies and their previous experiences are clearly harmful, as mentioned in the reports of the Office of Financial Supervision.
27. Income tax is canceled on the employee whose total monthly income is one million five hundred thousand or less, and the income tax is increased for senior officials, special ranks, general managers and those of their ranks.
28. Reconsider Article (24) which allows adding sums for oil licensing contracts for the years 2019 and 2020 as an exception from the Financial Management Law.
29. Reducing embassies and consulates according to realistic need and tangible feasibility, and prohibiting the rehabilitation of buildings and houses of embassies and consulates mentioned in Article (26) Second.

  1. Abolishing Article 38 that permits absolute privatization that includes even the oil and banking sector, which the investment law excluded from being subject to privatization activities. This article also allows for partnership in ownership of the electricity and health infrastructure, on which the state has spent tens of billions of dollars for many years.
    31. Abolish Article (41) that permits the sale of state-owned agricultural lands to those with the right to dispose and allows their transfer from agricultural activities to tourism or commercial activities, thereby neglecting the assets of permanent revenues for the state.
    32. Article (42) related to the same subject mentioned above shall be repealed.
    33. Abolishing Article 47 which permits the sale of the state’s industrial assets from public companies, which is directed at a great loss to the national economy.
    34. Article (53) which gives legal cover for vehicles entering Iraq in an irregular manner by imposing fees is canceled despite the fact that the act is against the law, and the release of the text is understood to allow the entry of vehicles to continue after the enforcement of the law in a non-fundamental way with the justification of imposing fees on them!
    35. Abolishing Article 56 that excludes the deficit planned for the 2021 budget from the percentage stipulated in the Financial Management Law (the deficit in the planning budget may not exceed 3% three percent of GDP. It means that the planned deficit does not exceed (7) A trillion, if we assume that the GDP is close to (220) trillion dinars.
    36. Amending Article 57 to ensure that the necessary instructions to facilitate the implementation of the provisions of the Budget Law are published in the Official Gazette.   LINK

Frank26  They finished with the tally.  You know what the tally is right To see how many zeros they brought in…it was successful collecting the 3 zeros CBI?  Yes it was. ‘And you guys are pretty bummed out that you had to lower the rate to bring in those three zeros…it’s going to work with the citizens but now you’re telling them you’re going to raise it again right?’  Yes we are.

MilitiaMan   Article:  “On Saturday, the House of Representatives ended discussion of the budget bill for 2021.”   Quote:  “determining the price of a barrel of oil and currency exchange in the budget law are the government’s prerogatives, indicating that The implementation of the budget law requires reducing the volume of total spending and activating the private sector, both industrial and agricultural,Activating the private sector. That my friends is imo going to a market economy, whereby, activating the industrial and agricultural sectors to create jobs. The real exchange rate will do the trick.