Dinars Entering The Ministry Of Finance Are 20% Less Than The Amount It Needs.. Iraqis Start Their New Year With Salary Anxiety, 1 JAN

 Dinars Entering The Ministry Of Finance Are 20% Less Than The Amount It Needs.. Iraqis Start Their New Year With Salary Anxiety

Economy   2024-12-31 | 1,818 views  SumerianNews  More than 6 days have passed since the supposed date for the release of salariesStaffAs concerns grow over possible delay in pension paymentsIraqisAlso, their salaries will be due tomorrow.vacation New Year's Eve.

Iraqi employees usually receive their monthly salaries no later than the 25th to the 27th of the month, but the current month ended today, and there are still no indications of the possibility of disbursing salaries, as salaries were paid in “installments” for some categories, ministries and departments and not others, due to the lack of liquidity, i.e. the Ministry of Finance does not have the dinar.IraqiIn her closets.

This prompted the Ministry of Finance to issue a “denial” statement, but the denial, as it seems, is a denial of “the inability to release salaries,” not a denial of their delay, as the ministry said in a statement that “the information circulating on social media, which claims to apologize for the disbursement of salaries of employees,The StateThis month due to a lack of liquidity is completely incorrect and has no relation to reality.

She added: “We are fully committed to the process of financing employees’ salaries, as the Accounting Department has financed the salaries due to ministries, governorates and non-affiliated entities for the current month of December according to the schedules specified for each of them, and it is continuing its efforts to ensure the continuity of disbursing financial dues without any delay or interruption.”

It is clear that the ministry only denied “the inability to disburse salaries this month,” and did not deny the existence of a lack of liquidity or a delay in disbursing salaries.

Problems of delayed salary disbursement have begun to appear more than once during the past few months, with spending requirements increasing compared to the revenues entering the state. For example, current spending alone during the past ten months amounted to more than 91 trillion, excluding investment spending, i.e. an average of more than 9 trillion dinars per month that the Ministry of Finance needs to ensure current spending such as salaries and other mandatory requirements.

In contrast, Central Bank data shows that the Ministry of Finance sold the Central Bank only $4.4 billion last November, equivalent to 5.8 trillion dinars.

As for non-oil revenues, they average 1.4 trillion dinars Monthly according to the Ministry of Finance data, which means that the total non-oil and oil revenues resulting from selling the dollar to the Central Bank amount to 7.2 trillion dinars, while the required amount is more than 9 trillion dinars per month.

Accordingly, this means that there is a 20% deficit in the funds required for the mandatory monthly current expenditures, which makes the Ministry of Finance unable to collect all the funds at the same time in order to pay the salaries of all ministries at the same time as was the case previously, and it resorted to paying them in "installments", and whenever it has gradual liquidity.

Member of the Parliamentary Finance Committee Jamal Kojer says that the liquidity shortage crisis will continue in 2025, and if the price of a barrel of oil drops to $60, we will not be able to secure employees' salaries.   LINK