Timings and budget constraints

9/19/2018

Mohammed Abdul Zahra al – Hindawi
general state budget represents one of the most important annual laws, this importance comes as drawing on operational and investment spending tracks in the country, as well as identifying the sources of income and the mechanisms available through different sources and the amount of deficit schematic or realistic.

And thus represent the state’s financial plan for next year, which includes the planned expenditures of ministries and provinces and various institutions in terms of securing salaries of employees, which reach about 40 trillion dinars annually, as well as the provision of allocations for investment projects carried out throughout the country.

These tracks are determined according to the forecast of revenues expected to be achieved through oil sales, which represent the largest share of budget funding, or through taxes and fees on services and revenues of border ports and contributions of
other sectors .

As a result of this importance, the budget enters into multiple tunnels and does not come out of them until after the painstaking efforts of all parties concerned starting from the ministries and governorates and independent bodies, which submit their annual programs, through the Ministries of Planning and Finance, up to the Council of Ministers, to the House of Representatives,

She returns again to enter into the same spending that she entered on the first trip because of the objections and observations of members of the House of Representatives, and then turn to resume the trip again.

Then passed by it must go to the Presidency of the Republic for approval and then to the fact sheet for publication, and then the Ministries of Planning and Finance to issue the implementation instructions, the government may challenge some items that the House of Representatives to change or
add.

Such a strenuous journey will take a period of time that in some years will cross the first third of the year or more. So as not to stand confused at the time unable to address the problems that may arise in the course of implementation.

And here we want to talk about the budget of 2018, which approved the price of a guess $ 46 per barrel, and a deficit reached about 13 trillion dinars, has been described as austerity budget because many aspects of spending was not allocated the amounts required due to lack of financial resources ..

After days began oil prices improve slowly Slowly, the Ministry of Finance began to speak of a financial abundance that helped fill the fiscal deficit in the
budget.

But the problem faced by the government, especially after the events in the province of Basra and other provinces, is how to provide financial allocations for doors not covered under the
budget law .

At a time when there was a huge financial abundance, the Ministry of Finance could not transfer funds between the doors because the law prevents this, nor could talk about the preparation of a supplementary budget in the absence of the House of Representatives.

Therefore, some articles of the budget law have become a constraint on the government in providing appropriate financial allocations to provide services despite the availability of
financial liquidity .

And here and because we are still in the early stages of preparing the budget for the next year 2019, and with optimistic expectations of the arrival of oil prices to about $ 80, there should be a clear vision of this budget and reconsider all its doors away from the political effects that were subject to the budget for the year 2018

due to synchronization Prepared with the end of the legislative session and therefore some of the visions that governed the preparation were political visions trying to establish for the
next stage .

We believe that the circumstances of Iraq now require the preparation of a budget capable of meeting the requirements of development properly, and the need to address all the problems that turned into constraints that tied the government’s hand in spending on vital and
strategic projects .

http://www.alsabaah.iq/ArticleShow.aspx?ID=163352

The economic capital

9/18/2018

Mustafa Mohamed Ibrahim
Basra is the third largest city in the Republic of Iraq and is the economic capital of Iraq and its first water outlet. Basra is located in the far south of Iraq and on the West Bank of Shatt al-Arab.

It has a population of 2,796,000 and an area of ​​19,070 km2.
Own it.

Iraq is the fourth largest oil reserves in the world, estimated at 115 billion barrels. Basra has a large oil wealth.

Statistics show that it owns 15 fields out of 77 fields, including 10 producing fields and is still waiting for development.

These fields also contain oil reserves More than 65 billion barrels, accounting for 59 percent of the total Iraqi oil reserves.

As the revenues of oil in the budget of 2018 about 74 trillion Iraqi dinars and non-oil 12 trillion Iraqi dinars and include (taxes and customs duties and capital revenues, which concludes that the oil revenues are the main ones in the budget, which in turn determines the expenses and salaries and jobs and the volume of investments, The largest on the economic capital of Basra.

Basra has the largest oil fields in Iraq, including the Majnoon field, one of Basra’s giant fields and contains a proven oil reserves ranging between 23-25 ​​billion barrels and produces about 100 thousand barrels per day and was developed with a capacity of 600 thousand b / d.

The field of Nahran Omar, which is still modest production of about 1000 b / j, although it is from the giant fields and can reach the production capacity after the development of 500 thousand b / d and the number of wells, which contains 15 wells and reserves are certainly 6 billion barrels.

The field of West Qurna is also from the giant fields and contains a proven reserve of 18 billion barrels and the number of wells 247 wells, while the Rumaila North is one of the giant fields and in the seventies of the last century and the number of wells 340 wells, the ninth largest world oil field.

The extraction of crude oil in Basra is characterized by low production cost, which is the lowest at the global level, because the oil and gas fields are located on land and in the depths very close to the surface of the earth and most of the economic feasibility because of the size of large reserves and large area.

And does not include complex geological formations, in addition to having border ports with Iran and Kuwait, as well as port revenues, estimated at 21 billion dinars per month.

The reason for the recent crisis in the economic capital (Basra) is not political but purely economic, despite the advantages of this economic capital, but it needs a restructuring of its economic structure, which contributes to the development of capacity to raise the economic level of the province
and the family.

http://www.alsabaah.iq/ArticleShow.aspx?ID=163300

Central Bank: The conversion of the dollar from Iraq to Iran has been suspended since 2012
9/17/2018

The governor of the Central Bank Ali Alalak, on Monday, that the conversion of the dollar from Iraq to Iran has been suspended since 2012, while pointed out that the past months witnessed the transformation of Iraq to the normal follow-up after it was in the gray area.

"The conversion of the dollar from Iraq to Iran has been suspended since 2012, and the Iranians are aware of this," al-Alak said in an interview with Al-Sabah newspaper.

"Any dollar transfer will go through the US Federal Reserve, which will stop the transfer," he said.

He explained that "Iraq was classified in the financial organization responsible for the classification of countries within the framework of money laundering, within the gray area, and his way to enter the black area, to become a financially isolated area and the report of the assessment of Iraq contains 700 observations,"

noting that "After hard work removed All reservations and turned us Iraq from the gray area to the area of ​​continuous follow-up, and in the past months we have become a normal follow-up area, we are the case of any country in the world. "

http://aletejahtv.com/archives/254321

Experts: Ensure the investment is the basis of development

9/17/2018

Baghdad / Emad Al-Amara Iraq is suffering from the problem of the slow arrival of international and regional investments to be present in the local business arena, despite the great tendency to open up to foreign investment, especially after the achievement of the Central Bank achievement in getting out of the list of sanctions in the European Union to contribute to attract money and create the investment environment in the country and ensure the flow Investments to Iraq \ Attract investments between the academic economist d.

"The success of the entry of foreign investment into Iraq requires the creation of an appropriate environment for the process of attracting these investments, after reforming the financial structure with procedures to facilitate the entry of investors’ funds," he said.

"The institutional and legal frameworks must be set up to instill confidence in the foreign investor, Which is stipulated in the investment law is the basis for organizing any economic activity.

" Conflicting policies
He continued: "It is necessary to achieve general stability, so if the investor enters its money, it must be dealing with the administrative policies and decisions in force in Iraq smoothly and without obstacles and away from routine."

He stressed the importance of directing foreign investment first in the infrastructure, especially in the energy sector, transport and basic services as it is the basis for the success of other investments, while encouraging joint investments between foreign and national capital to transfer expertise to local investors to develop their capabilities and potential.

He explained the importance of pushing foreign investors to use national labor after being given the possible facilities and exemptions from duties and taxes levied on such investments, and obliging foreign investors to run specific percentages of the labor force to absorb the phenomenon of domestic unemployment. "

Infrastructure
For his part, the academic economist Amr Hisham need to "overcome the challenges facing foreign investment to enter the country through upgrading the infrastructure in Iraq, especially in energy sources, roads, transportation and basic services necessary for the success of investment projects."

"This requires directing the state’s effort to rebuild the basic infrastructure of the society so that the process of reconstruction and foreign investment can succeed," he said.

Investment flows
Hisham pointed out that "the absence of sophisticated financial markets able to meet the requirements of the investment sector in all forms is another obstacle to the success of any investment," but the central bank opened the door to enter the money to Iraq after he managed to get the country out of the list "The presence of such sophisticated markets helps the process of investment flows and motivate citizens to invest their savings, especially if we know that there is an intention to privatize a number of state-owned enterprises."

Investment Decision
Hisham focused on "
He called for "the development of the institutional and legal framework, especially after changes in the methodology of the state and its future directions in the transformation of the Iraqi economy from the central planned economy to the free economy, and the transition from the central management of the strong state to the federal system with broad powers to manage the regions and provinces, Its interaction with multiple institutions with unaligned powers ".

http://www.alsabaah.iq/ArticleShow.aspx?ID=163212

Read the budgets of items

9/17/2018

Mohamed Sherif Abu Maysam
If we counted the total investment budgets since 2005 until 2018, except in 2014, where the disbursement under the Financial Management Law by one to 12 of the budget in 2013 because of the failure to approve the budget in that year, we find that the allocation of about 320 trillion Iraqi dinars,

The framework of the budgets of items based on the availability of funds under the supervision of the disbursement limits of the appropriations listed and the purposes assigned to them, within the framework of routine legal procedures, concerned with the issue of tabulation on the basis of the type of expenditure, which does not clarify the achievement of the objective of spending,

Unlike budgets Programs that are based on the interest of achievements and performance and the achievement of the objectives set within the economic programs concerned with the nature of the activities and the work of government agencies more than their interest in the subject of spending, and therefore, it sheds light on the work done to make sure that the results achieved equivalent to what was planned.

The years 2013, 2015, 2012 and 2011 witnessed the highest investment financial allocations, which contributed to the expansion of investment spending in budgets that were recognized late due to political disputes.

The first months of the fiscal year are lost between the readings in the House of Representatives and the consensus and then the approval and approval in the Presidential Council Publishing in the official gazette and setting the instructions for executing the budget and then initiating payment claims in installments,

making the time factor a pressure factor in the implementation of government projects, usually spending in the last months of the year, spending hastily for fear that the money will return to the public treasury by the end of the age Finance.

If we go beyond the other factors and what is hidden in the executive institutions, the pattern of investment spending in the balance of items with the time component of the compressor can explain the state of deflation in this institution, or waste and inaccuracy in that ministry,

the more the expansion of spending, the more attention to the regulatory side than the interest To achieve the objectives for which it is spending, while the budget can achieve programs a set of positive goals at once, and lead to the need to raise the level of performance and rationalization of spending and prevent wasteful and evaluate the results by comparing plans.

Accordingly, as we approach the date of preparation of the budget of 2019, after the political process has seen more stability, and decreased the frequency of interactions, the relevant parties are invited to review the pattern of budget industry, and the delinquency towards program budgets to avoid the shortcomings left by our budget items.

http://www.alsabaah.iq/ArticleShow.aspx?ID=163211

Indicators of economic resilience and stability in the monetary system

9/13/018

The
central banks in the countries of the world are mainly aimed at achieving monetary and financial stability through their programs and strategy aimed at maintaining stability in the exchange of their local currencies against other foreign currencies and building sufficient foreign reserves in accordance with international special standards issued by the International Monetary Fund.

Other criteria related to confronting crises, challenges and economic and political shocks in their countries, controlling stable rates of inflation and interest rates, applying compliance regulations and rules, combating money laundering and financing terrorism.

The Iraqi Central Bank’s march over the last four years proved that it is proceeding steadily to achieve the stated goals.

This proves that Iraq has gone out of the monitoring and follow-up area to the regular follow-up area every two years, like other banks in the world according to
FATF.

The Central Bank is also honored to be the best Arab portfolio for 2018 and to occupy a leading position in the world according to the 2018 Global Finance Report.

This is expected to be reflected in the efforts of the Central Bank and the Association of Banks and Banks to restore international banking relations with
correspondent banks .

And because of the international political changes, most notably US sanctions imposed on Iran and Turkey; to be accurate and non-critical economic analysis of the reality of monetary stability in Iraq and the effects of the new shock (sanctions) expected on the exchange rate of the Iraqi dinar, which has been stable since 1/1/2018 and is still strong and stable Despite international and domestic political shocks.

In order to ensure that the expectations are not taken in an extreme manner and create a state of fear among the public and the banking sector, and through an economic and analytical analysis of the state of stability in the exchange rate and from a neutral and transparent point of view, we note that the high independence of the Central Bank on the one hand and the availability of foreign reserves on average,

The monetary bloc in circulation on the other hand and to cover the imports according to the standards of the International Monetary Fund, as foreign reserves are fully insured and Iraq occupies the fourth place in the Arab and is currently about $ 58 billion and grows day after day.

In addition to the strength and recovery of the Iraqi dinar during the past seven months and deal with the wisdom and responsibility and independence by the Central Bank will prevent the impact of international conditions and sanctions on neighboring countries.

On the reality of monetary stability, which began to be achieved during the first half of this year with the emphasis that the Central Bank does not have a deficit in the budget, but vice versa is currently achieving a surplus in the budget because of high oil prices.

All this represents the real guarantees to protect the exchange rate and to face this new shock will be overcome and exceeded the economic and security shocks suffered by the Iraqi economy in
previous years.

http://www.alsabaah.iq/ArticleShow.aspx?ID=163036

Source: The policy of the Central Bank to increase the number of banks damaged the banking sector
9/12/2018

Knozmedia

A source in the Iraqi banking sector, Wednesday, that the policy of the Central Bank of Iraq to increase banks operating within Iraq, reflected negatively on the banking sector in addition to the impact on the work of the banking sector and profitability and the possibility of expansion horizontally.

The source said that "the policy of the Central Bank of Iraq to expand the number of banks operating within the country, has become adversely affect the economy of Iraq, because it came at the expense of quality and services," noting that "many of these banks will not be able to provide the necessary services in the face of wide competition" .

He added that "good banks that provide banking services to the citizen, were affected negatively because of the large banks," pointing out that "the central bank was supposed to be forcing banks to increase the number of branches rather than opening new banks."

The source said that "Iraq needs in the coming days to the banking sector by strengthening banks and not opening new banks, especially as neighboring countries the number of banks is very few compared to Iraq," noting that "the continuation of the policy of the Central Bank to open banks may lead to the weakening of the banking sector Significantly".

It is noteworthy that the number of banks operating within Iraq is about 80 banks, an increase of more than 600% since 2003.

http://www.knoozmedia.com/360823/%D9…-%D8%A7%D9%84/

General "Iraq recognizes a strategy to develop the electricity sector
9/11/2018

US General Electric Company, the Iraqi
government, has handed over a strategy to develop the country’s electric power sector, raise the capacity of the national system and employ more manpower.


In a statement to Anatolia, Frederick Rivera, director of the energy sector in the American company, said that the latter handed over to the Iraqi government, the new strategy developed for the purpose of developing the electricity sector.


The strategy involves doubling the production of electric power by introducing modern technology into energy projects.


Rivera added that "the strategy that was developed also includes the development of the Iraqi energy production system from production, transportation and distribution, with the aim of putting a final solution to the electricity crisis."


"The strategy also aims to invest the gas associated with the oil extraction operations, and to benefit from it in the supply of gas-powered power plants."


Iraq needs more than 23,000 megawatt hours of electricity to meet the needs of the
population and institutions without interruption

http://aynaliraqnews.com/index.php?aa=news&id22=104643

Compensation of private banks

9/6/2018

Dr. Basem Ibrahimi
The Iraqi banking system is trying to return to the liberated areas and to work there again. The Central Bank and the banks have suffered large losses, some official reports amounting to approximately one trillion Iraqi dinars between physical property and currency. The terrorist organization has destroyed a total of 121 bank branches, 87 branches In addition to the branch of the Central Bank of Mosul.


During these days, the branch of the Central Bank of Mosul was reopened in an alternative location on the left side. The old building is badly damaged and it needs more time to rehabilitate it due to the great damage it has incurred, not to mention the costs it requires.

A number of banks reopened some of its branches in a number of liberated provinces, but if the government banks will rehabilitate their branches through investment allocations in the public budget, the case in private banks are absolutely different and did not receive those banks any compensation, although some of them lost a large number of Branches such as Mosul Bank It has nine branches.

The question here is: Can private banks be compensated according to the Law for the Compensation of Persons Affected by Military Operations, Military Mistakes and Terrorist Operations No. 20 of 2009, as amended by Law No. 57 of 2015 as individuals? The answer is yes.

It can be done since this law includes natural or legal persons and private banks are companies established by law and therefore can claim compensation or so-called law (reparation
).

The process of re-establishing stability in the liberated areas needs to be re-established by all government and private entities, especially banking institutions that play an important role in financing and banking services. Therefore, the process of covering banks with compensation will have a great effect in enhancing the work of these banks and encouraging them to return and work quickly.

Especially as we are approaching an important stage of political and economic change and its internal and regional challenges, which will require concerted efforts to achieve progress and prosperity for the country in the
future.

http://www.alsabaah.iq/ArticleShow.aspx?ID=162701

Abadi orders allocate half a trillion dinars to improve the services of Basra
9/5/2018

The deputy for the province of Basra, Amer al-Fayez, on Wednesday, the Prime Minister Haider al-Abbadi to allocate half a trillion dinars to improve the service reality in the province.

Al-Fayez said in a statement to Al-Maaloumah that "Prime Minister Haidar al-Abadi gave during his meeting yesterday with a number of deputies of the province and the local government to allocate 500 billion dinars in order to improve the service reality in the province.

"Fayez added that "the allocation of these funds comes within quick solutions to address the problems of the province," noting that "desalination projects are strategic and long-term projects.

"The Prime Minister Haider Abadi said on Tuesday that the water station in Basra will be run early next month, noting that the problem of alinity of water in Basra dates back to the eighties of the last century.

http://www.almaalomah.com/2018/09/05/341556/