Economy News – Baghdad
How will the unified treasury account solve Iraq’s financial problems in light of many difficulties and chronic challenges, including administrative and financial corruption, inefficient management of public money, waste of state resources and its financial and economic institutions. In addition to all that, the most important challenge, the lack of a clear account to manage state resources properly.
The application of the unified treasury account system will reduce corruption and will allow the Iraqi government to see the daily actual balance to determine government expenditures instead of distributing these expenses to more than one account, as central dealing with the balances of government bank accounts through the unified treasury account will enhance electronic practices in payment systems, collection of tax and customs revenues, control government spending and identify daily, weekly, monthly and annual revenues for all sectors of the state and institutions instead of specialized accounts in each of these sectors. The strange thing is that the government does not know the areas of spending and revenues and the deal of the century is the best evidence and example of not knowing these revenues and have been associated with some institutions And the personalities who took advantage of their information about these revenues with some gaps and the tax money was seized up to 2.5 billion US dollars.
To reduce these thefts, Hassan, the government did in the beginning to activate the unified treasury account, which requires great efforts in light of everyone knowing that there are political, economic and government resources that will hinder this project because it will expose them and reduce the possibility of thinking about large corruption operations similar to theft of the century.
The unified treasury account is part of information systems solutions and is managed, monitored and followed up by the Public Accountant in the Iraqi Ministry of Finance and the Central Public Treasury Department. Therefore, opening separate accounts for state institutions and managing their affairs separately contributed to corruption and theft of public money. It is noted that many of the daily revenues for taxes, customs and traffic, the Real Estate Department, Health and Education Revenues, the Capital Secretariat and other institutions have their separate accounts and achieved revenues. They take allocations from the federal general budget. These separate independent accounts in which revenues are deposited and the allocations for their expenses are taken from the treasury, so if these revenues are seized and placed in the unified treasury account and these revenues are dealt with Transparently, the Iraqi government will recognize the size of revenues, and with follow-up and monitoring, corruption will reduce to large limits, because it is unacceptable to disburse a budget of up to 200 trillion dinars and we do not get revenues to the state of up to 25%. We read that there are non-oil revenues of 11 trillion dinars, but the truth is that only one trillion dinars reaches the state treasury and the survival of the reality in this way means the collapse of the Iraqi economy with any crisis that affects the prices of exported oil.
In one of the seminars of the Faculty of Management and Economics, Al-Mustansiriya University, in the presence of the deputy spokesman, Dr. Magda Al-Tamimi, says when auditing the accounts of the general federal budget, an amount of one billion Iraqi dinars that we do not calculate from revenues or expenses on the basis that this amount does not constitute or affect the total account, which is a small amount, while talking to Dr. Al-Tamimi when visiting the Japanese parliament, a cup of tea and one piece of organization in a bag (clins piece) presented as a hospitality to a delegation to the Japanese parliament. It was calculated as expenses on this parliament. At that time, the accounts of the State of Iraq one billion Iraqi dinars remembered a small amount that is not calculated in the revenues and expenses of the general budget, and examples The similar ones are many.
Accordingly, we find in the step of the Sudanese engineer’s government in establishing the unified treasury account a step in the right and beneficial direction. It is unacceptable for the state to balance up to 200 trillion Iraqi dinars and revenues do not exceed one percent. Therefore, the implementation of the unified treasury account in the framework of developing the work of public finances should be accompanied by sustainable efforts, monitoring and follow-up, which set the goal of efficient use of public money and public finance management in a way that enhances control and follow-up. This will reduce corruption and waste and achieve additional revenues that may reach 50% by reducing corruption and amending the various administrative systems to become automated and electronic.
The application of this system will reduce fraud and fraud on state funds and the seizure documents will not be repeated, as happened in theft of the century through 247 instruments spent by companies between 2019 and 2022. Therefore, the application of the unified treasury account system is inevitable and necessary to get rid of a long period of waste and corruption until revenues reach the public treasury properly, while determining the productivity and expenses of institutions and controlling the work of public administration. This unified account will force state institutions to transfer revenues and disclose expenses clearly and time has become appropriate to modernize the infrastructure of public administration and apply sound tools that are reflected in increasing government revenues, as Continuing the state of administrative and financial corruption, inefficient management of public money and waste of economic resources. Emotions, the phenomenon of free riding and the fatherly economy do not build a state that may build a luxury for the fall. It is in the interest of the state and society to control its annual revenues and expenses.
What do we do when global demand for crude oil commodity changes, what do we do when we find energy alternatives, what do when crude oil prices fall?
The unified treasury account is an inevitable condition that will not complete the digital transformation of the management of public finances, information and financial data. Without this account, there is no control of daily, weekly, monthly and annual cash flows, thus starting the implementation of this project, in addition to controlling the equalities of governance, financial discipline, accountability and transparency.
In addition to the above, we recommend the use of state experiences with regard to the public treasury account, especially the Japanese experience, the progress of applying this project with the electronic financial management project, following up the application of the electronic payment project, as well as the automation of work in the General Authority for Taxes, the General Authority of Customs, and follow-up of property fees, health and education revenues, the Capital Secretariat and other institutions and government obediences.
Assistant Professor Dr. Sadiq Al-Bahadli
Faculty of Management and Economics
University of Mustansiriya
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