Article: “A member of the parliamentary Finance: Half 2016 budget is dedicated to salaries”
80% of Iraq’s budget is going to payroll, that leaves very little left over to facilitate the auctions and the fight against ISIL, let alone service projects for the people like electricity, water and sewage.
By lowering the value of the dinar, the GOI could save $10-12 billion a year in payroll, great for the government, bad for the citizens.
The good news is that Keywords is against it, here’s hoping he sticks to his guns on this.
The other thing is this, the IMF/WB want Iraq to lower salaries, remove subsidies on fuel, electricity etc. and implement the tariff’s, well, I don’t see how they can do that with a currency that’s been further devalued by lowering the rate to 1500-1.
Here’s hoping the recent IMF involvement can get Iraq closer to Article VIII where they have a chance to raise the value and stop the auctions.