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Iraqi Minister of Finance talk to the Media on the current Financial Situation.

The Iraqi News Agency (INA) opens (6) files with the Minister of Finance, including converting contracters and lecturers into employees and the 2022 budget

Minister of Finance Ali Allawi revealed, today, Monday, that the total amount of the Food Security Law is subject to amendment, and while he settled the controversy over the file of the lecturers and their fate with turning them into employees, he indicated that the budget law for 2022 is irreplaceable and will include degrees to employ contracts.

emergency support law

Allawi said in an expanded interview with the Iraqi News Agency (INA), that “the food security law submitted by Parliament, its total amount is 26 trillion dinars, after adding a trillion to settle the file of lecturers and treat them according to Resolution 315,” noting that “the emergency support law does not include the employment of contracters or  lecturers, but only their conditioning.

He added, “The government’s submission of the emergency support law before the Federal Court’s decision was deliberate to support the fragile classes and to confront the rise in prices as a result of the Ukrainian war, as well as supporting the agricultural sector and create job opportunities in small and medium projects,” noting that the Financial Management Law does not give the space to process arrears and others, especially dues of the Iranian gas accumulated since the year 2020.

And he indicated that “the law’s goal is also to provide sufficient storage of wheat to face any future problems,” noting that “emergency security cannot be a substitute for the budget law for 2022.”

Allawi explained that “the food security law that was submitted by the government has been added to tabs away from food security,” noting that “the government agreed to the basic provisions of the current emergency support law submitted by Parliament.”

He noted that “the Ministry of Finance has plans prepared to deal with if the food security law is challenged again, but the government will face a problem and there will be a disruption in the economy.”

However, Allawi said, “The Food Security Law is devoid of any allocations to the Kurdistan Region.”

Budget law and fixing contracts

He explained that “the budget law represents the state’s economic and investment vision and addresses future issues as well as operational aspects and cannot be compensated by the emergency support law,” pointing out that “the economic outlook in which the government deals according to the budget law for the year 2021 and cannot be continued because our vision differs for 2022.”

He pointed out that “the general budget for 2022 was prepared by the Ministry of Finance last March, according to calculating the price of a barrel of oil at 60 dollars, with a total amount of up to 150 trillion, and it may include a small part of the borrowing,” noting that “there are amendments that will be made to the law according to recent changes and the rise in  Oil prices.

He explained that “the budget law for the year 2022 may include job grades to install contract holders who have contract service of two years or more.”

Investing the surplus

And the Minister of Finance added that “Iraq does not have a financial glut because export revenues will be received after three months, and the increase in abundance may start from now, up to two billion dollars per month,” noting that “the part of the financial abundance will be invested in the nucleus of a sovereign and stable fund to address crises and prevent the recurrence of what happened from  A shock in the late payment of salaries previously, as Iraq is now in a good financial position, and the foreign currency reserve will amount to 80 billion dollars, which gives the possibility to cover Iraq’s need for imports for a year.

He explained that “to maintain the spending ceiling, it is preferable to legislate a law under the name of the Generations Fund, but if this is not possible, the Ministry of Finance has the ability to manage it implicitly according to the available liquidity.”

Federal Court decision and the region’s oil

And Allawi said that “the decision of the Federal Court on the region’s oil will force the Ministry of Finance to take into consideration the repercussions of this decision and not to give the Kurdistan region 12 percent and other allocations, unless a decision is reached to limit the region’s oil exports to the hands of the federal government represented by SOMO,” noting that “Kurdistan region’s oil exports after the Federal Court’s decision have become illegal and no financial allocation for the region can be included in the current year’s budget unless the issue of oil export is resolved and restricted to the hands of SOMO.

personnel file

He explained that “the latest statistics on the number of those who receive salaries from the state in various segments amount to about seven million employees in the latest data of the Ministry of Finance,” noting that “there is ongoing work with the employment and tax number and will contribute to ending the file of double salaries, as well as job dropouts.”

Working with the electronic system for granting loans

And he indicated that “the electronic system working in granting loans and advances to employees and citizens of government banks and Rafidain Bank in particular will be close after solving the technical issues associated with the contractor in managing the electronic system,” noting that “the interest imposed on granting loans and advances was developed according to a study to avoid the loss of any party as well as  According to the balance of market, cost and competition.

Dr. Allawi said, “The revenues of the state real estate for the year 2021 and the first quarter of this year amount to one hundred million dollars.”

Media Office of the Ministry of Finance , 2022/6/6


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