Parliamentary Finance: We will reduce more than half of the budget deficit

Economy 12:08 PM - 2021-01-23

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The Iraqi Parliamentary Finance Committee confirmed on Saturday that it would reduce the deficit percentage in the draft federal budget law for 2021.

 

Committee member, MP Jamal Kochar, said in a special statement to PUKmedia that the committee continues to work day and night to reduce the deficit value in the draft budget bill, indicating that the committee will reduce the deficit ratio to more than 40 trillion Iraqi dinars.

 

MP Jamal explained that the deficit in the draft budget bill amounts to about 71 trillion, and the committee will work to reduce it to between 20 to 30 trillion dinars.

 

Currency exchange rates against the dinar has recently hiked in Iraq, which largely relies on oil sales and is facing large budget deficit due to the drop in oil prices as a result of the coronavirus pandemic.

 

To cover the budget deficit, the Iraqi government has recently deducted government employees salaries, as well as a currency devaluation by almost 20% in the yet to be voted on 2021 budget to address the problem.

 

High exchange rates to remain

 

The Iraqi Parliamentary Finance Committee confirmed on Wednesday, that the rise in the price of the US dollar against the Iraqi dinar will continue for the next three years.

 

MP Shirwan Mirza, a member of the Parliamentary Finance Committee and PUK bloc MP in Iraqi Parliament, said during a special statement to PUKmedia: "The exchange rate of US dollar against the Iraqi dinar will remain high for the next three years according to the plan of the Central Bank of Iraq."

 

He added: "The government won 12 trillion dinars from the decision to raise the price of the dollar against the Iraqi dinar, and this will lead to reducing the deficit in the federal budget for the year 2021."

 

The Central Bank of Iraq had decided to raise the exchange rate of the dollar against the Iraqi dinar, by adopting the new dollar price.

 

 

 

PUKmedia