KTFA (Samson)

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Samson: Cougar: The Finance Minister Has The Power To Borrow Temporarily Until The Borrowing Law Is Passed

3rd November, 2020

The Finance Committee in the House of Representatives tends to pressure the government to send the budget for next year 2021, stressing that without a draft budget, the white reform paper presented by the government cannot be implemented.

The anticipated 2021 budget is expected to be delayed before it comes from the government. The reporter of the Finance Committee, Jamal Cougar, told Al-Sabah newspaper: “The government does not want to send the budget because most of its items will contain a deficit,” indicating that “there will be pressure on the government to send the budget,” Because without it, even the reform paper will not be applied, which is supposed to be included in the budget next year, ”noting that“ it has not happened in the history of Iraqi governments that two consecutive years pass without a budget. ”

Regarding salaries, Cougar explained that “the Minister of Finance has the power to resort to temporary borrowing until the permanent borrowing law is approved,” expressing his surprise that the minister did not use those powers to cover the deficit in funding salaries, indicating that the government currently has 4.5 trillion dinars, meaning that it needs 1.5 One trillion dinars to be able to distribute the salaries of employees and retirees and social protection.

Cougar believed that “the statement of the Minister of Finance regarding the possibility of paying the salaries of employees within two weeks in the event that the Fiscal Deficit Law is not passed is shocking and will confuse the street and the economic environment, because the salaries holders of employees, retirees, the protection network and the rest of the segments represent the middle class among segments of society, and their number is approximately 6.5 million citizens.

They receive salaries from the state, and there are 8.5 million in the private sector who depend almost entirely on the salaries in the absence of investment or agricultural and industrial sector activity. Iraq is a consumer country that depends mainly on state employees.

Cougar described the Finance Minister’s statement on salaries as “disappointing”, and that it would confuse the street and create an economic depression if the government did not back down from this trend and accelerate the distribution of employees’ salaries.  LINK