KTFA (Samson)

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Samson: Financial Committee: Having 150,000 double-salary employees and processing them saves one trillion dinars per month

27th October, 2020

The Finance Committee in the House of Representatives, on Tuesday, reserved the amount required in the fiscal deficit law, which amounts to 41 trillion dinars, while it confirmed that Parliament could approve 20 trillion dinars to secure salaries for the end of the current year.

The committee’s reporter, Ahmed Al-Saffar, revealed, according to the official newspaper, that “there are 150,000 employees with double salaries,” indicating that “dealing with this issue will save more than a trillion dinars per month.”

Al-Saffar said: “After examining the draft of the fiscal deficit law in the appendix of current expenditures that includes 38 items, we found that some items can be postponed to the 2021 budget to reduce the loan amount that exceeds 41 trillion dinars, stressing that it is impossible to approve it by the House of Representatives or the Parliamentary Finance Committee.”

He added, “Seven items out of the 38 are obligatory to spend during the next four months, including (employee salaries, pensions, indebtedness and debt benefits, ration card, medicines and social protection network”, indicating that they are necessary items that the loan should cover, and the rest of the items Current expenditures are transferred to the 2021 budget, to solve the salary problem as soon as possible by approving the fiscal deficit bill.”

And he went on to say that “in the event that salaries are provided, the government is obligated to pay the debts resulting from the delay in salaries of employees. The first of the month of November is the distribution of the salaries of the month of October, and after a week they begin to distribute the salaries of the month (11), that is, the salaries are paid in succession because the government has no argument in the event that the amount of the loan specified for the next four months is approved.

To reduce the waste in spending, the Parliamentary Finance Rapporteur warned that “more than one minister has confirmed through the media the existence of double-salary employees, between two to nine salaries, since according to estimates, there are 150,000 double-salary employees.” And that “addressing this issue will save more than a trillion Iraqi dinars per month, and if the emphasis is placed on other taxes, whether at border crossings and the revenues of local departments such as” public traffic, state real estate and the General Tax Authority”, then the government will have a trillion dinars a month later.

Regarding the window for selling the currency, Al-Saffar explained that “approximately one trillion dinars do not enter the state treasury because of the unrealistic investments and receipts provided by some merchants who buy dollars from private banks through the currency window, and therefore they are not given to real importers, and they are not taxed and they do not express Real trade as goods entering Iraq, so the dollar must be transferred to the Ministry of Finance to collect real state taxes, amounting to one trillion Iraqi dinars.

 He concluded that the aforementioned cases, if dealt with immediately by the government, would have 3 trillion dinars available per month, reducing the monthly deficit in half.  LINK