Mazhar Muhammad Salih, the monetary advisor to the prime Minister, commented Saturday (December 14, 2024), at the opportunity of the authorities’s inability to pay personnel’ salaries after the first sector of next yr.
Saleh stated in a press interview, “The Iraqi financial policy has a flexible pattern of its standards known as (economic area), this means that maintaining the authorities’s ability to boom spending or even lessen some taxes or modify the regions of the undefined tax bases to attain its taxpayers to assist the economy without causing severe monetary troubles consisting of inflation or a huge deficit.”
He added that “this area is presently to be had in our usa as long as the financial scenario is still proper, and it permits the government to adopt monetary regulations to stimulate monetary increase, including increasing spending on infrastructure or improving social offerings, with a few internal borrowing while needed and at a fee that still revolves around 3% of the GDP without affecting the idea of financial consolidation, because of this lowering the yearly deficit and decreasing the stability of tremendous money owed and making them inside limits that don’t deviate from the internationally common fashionable charge for annual financial and economic balance, that’s 60% of the u . s . a .’s GDP.”
He pointed out that “the whole price of internal debts and the little ultimate outside money owed, their balance has now not exceeded 30% of the country’s gross domestic product (i.e. annual national earnings), which shows that there is a high level of balance in the preferred rate stage and in coins flows as sources for the overall finances, some of which could also be secured while wished from inner borrowing, without obstacles or any pessimistic outlook.”
He defined that “what is being accomplished above does not suggest that there may be a deterioration in oil prices as long as the OPEC+ institution’s coverage has end up its feature to take in the excess quantities inside the oil marketplace with the aid of decreasing individuals’ quotas to raise costs in leaps, and it is a coverage that need to be meditated in a stable way inside the position of the federal trendy budget for the year 2025 in its average annual sales and costs, so with caution and caution, however financial concerns are coming.”
a few political figures had predicted in press statements that personnel’ salaries could prevent within the fourth month of 2025.
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