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Cutebwoy: Parliamentary Finance: Reducing salaries and activating taxes will not cover the budget deficit 2020

Baghdad / Obelisk: The rapporteur of the Finance Committee in Parliament, Ahmed Al-Saffar, said on Tuesday 9 June 2020, that the procedures for reducing salaries and activating taxes will not cover the deficiency of the state’s general budget, while providing a solution to supplement the budget with money.

Ahmed Al-Saffar said in an interview with Al-Masalla that the monthly deficit is very large, and as the Finance Minister announced that it is 5 trillion dinars, the procedures for reducing salaries and activating taxes will not cover the financial deficit, and are considered within the formula for increasing revenues and reducing spending.

Al-Saffar added that the solution to supplement the budget is by resorting to borrowing, which is an important option, noting that the Ministry of Finance is looking for lenders, both internally and externally, and the best is internal borrowing, because external borrowing is used for investment financing, and salary financing must be internal.

The decision of the Finance Committee indicated that Parliament is in the process of legislating a law that allows the government to borrow until the budget is approved, and borrowing will be on terms both internal or external and Parliament is aware of the amount of the loan and the lender and the interest rate, and the law was read a second reading in the Finance Committee.