TNT Tidbits From TNT” Monday AM 10-25-2021

  In TNT 

Tishwash:  Adviser to the Prime Minister proposes a “digital” plan for the labor market in Iraq

On Monday, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, stressed the importance of regulating the labor market and transforming it into a digital market, while noting that improving the private sector will reduce pressure on the government sector in the issue of appointments and reduce unemployment among young people.

Saleh said in a statement to the official newspaper, followed by “Nass” (October 25, 2021), that “if the private sector works vigorously, the entire surplus will be absorbed by the government sector, especially if there are guarantees of good retirement and high salaries that are better than the government sector.”

And he indicated, “If the opportunities in the private sector become large, people will move to it from the public sector.”

He added, “Improving this requires a social system for retirement and social protections that protects the employee in the private sector,” noting that “the current labor law is classic and old and needs updating and does not rise to the required level.”     link

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Tishwash:  Brent above $86..Oil rises due to lack of supply

Oil prices jumped on Monday, continuing their gains to reach their highest levels in several years, as global supplies remained scarce amid strong demand for fuel in the United States and elsewhere in the world as economies recovered from the Corona virus epidemic. Caused depression.

US West Texas Intermediate crude futures rose 77 cents, or 1.0 percent, to $84.53 a barrel at 05:30 GMT, after rising 1.5 percent on Friday.

Brent crude futures rose 71 cents, or 0.8%, to $86.24 a barrel, after last Friday’s 1.1% gain.

After more than a year of reduced demand for fuel, consumption of gasoline and distillates is back in line with five-year averages in the United States, the world’s largest consumer of fuel.

Meanwhile, US energy companies last week halted oil and natural gas drilling for the first time in seven weeks even as oil prices rose, energy services firm Baker Hughes said in its closely watched report on Friday.

Oil prices were also boosted by concerns about coal and gas shortages in China, India and Europe, prompting a shift to diesel and fuel oil for power generation.  link

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Tishwash:  Al-Kazemi’s advisor sets a condition for overcoming the planned deficit in the 2022 budget

Today, Monday, Adviser to the Prime Minister, Mazhar Muhammad Salih, set a condition for achieving financial balance and eliminating the planned deficit in the 2022 draft budget.

Saleh said, in a press statement, that “the average price of a barrel of oil if it reaches $75 over the course of the fiscal year, will achieve balance and the planned deficit in the 2021 budget will disappear by about 29 trillion dinars, in a total spending ceiling specified at about 129 trillion dinars.”

He continued: “We must add another constraint, represented in non-oil revenues, which were estimated at about 20 trillion dinars, and they are not expected to achieve more than 40%, meaning that there is an actual self-deficit that has been generated, and it needs financing, and it will also be financed from the surpluses in the price of a barrel. oil.”

He added, “If it is assumed that the efficiency of the exchange in the budget is not 100% as some expect, then the average price of a barrel of oil is 75 dollars, it must achieve financial surpluses above the balance point of the budget.”

He pointed out that “the possibilities of the 2022 budget, if the total spending ceiling is adopted by the same general budget law 2021 of 129 trillion dinars, with a possible increase of 5% in total spending, with an adjustment to the price of a barrel of oil, to be $ 60 a barrel instead of $ 50 that was announced.” Previously, this meant that no less than 65% of that deficit would fall even within the low price range of a barrel of oil in the general budget.”

And he added, by saying, “Assuming that the planned deficit will rise to be around 36 trillion dinars instead of 29 trillion dinars, and if we take into account the increase in the quantities exported of Iraqi crude oil in the year 2022 specifically after the end of the restrictions of the OPEC Plus agreement, which restricted the quantitative shares of member countries, the budget The equilibrium limit at the specified minimum price range will reach $60 per barrel of oil, even if non-oil revenues deviate from the starting line set for them, as price increases above $60 per barrel will compensate them in all cases.

He explained, “This means that the general budget in 2022 will achieve surpluses within the same fiscal buffer, especially if the average annual oil barrel increases to be at least $75.”

He pointed out that “the surpluses will be divided in two directions, the first of which is to build a precautionary financial account called the Budget Stability Account, which is the government’s foreign reserve to meet the fluctuations of public budget revenues in the coming years, and it is called the Budget Stability Fund to achieve financial sustainability.”

He added, “The other side of the financial surpluses will be spent on investment projects, especially the faltering, income-generating and maximizing value-added projects, which absorb the momentum of unemployment and help raise growth in the gross domestic product by no less than 5% or double the annual growth of the country’s population, in a manner that achieves the minimum levels of economic and social welfare. link

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