The Dinars Entering The Finances Are 20% Less Than The Amount They Need.. Iraqis Start Their New Year With Anxiety About Salaries
Economy 2024-12-31 | 3,743 views Alsumaria News More than 6 days have passed since the supposed date for the release of employee salaries, while fears are mounting with the possibility of the salaries of Iraqi retirees being delayed as well, while the date of their salaries will coincide with holiday tomorrow.
the New Year Iraqi employees often receive their monthly salaries no later than the 25th to 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 released in “installments” for some categories, ministries and departments and not others, due to the lack of liquidity.
That is, the Ministry of Finance does not have the Iraqi dinar in its coffers.
This matter prompted the Ministry of Finance to issue a “denial” statement,
but the denial appears to be a denial of “the inability to release salaries,” and not a denial of their delay, as the Ministry said in a statement that
“the information circulating through social media claims an apology for disbursing the salaries of state employees for this month.” Due to a lack of liquidity, it is completely incorrect and has nothing to do with reality.” She added:
"We are fully committed to the process of financing employee salaries, as the Accounting Department has financed salary entitlements to ministries, governorates, and unrelated 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 that “it was not possible to disburse salaries this month,” and did not deny the existence of a shortage of liquidity or a delay in disbursing salaries.
The problems of delaying the disbursement of salaries began to appear more than once during the past few months, with the increase in spending requirements compared to the revenues entering the state.
For example, current spending alone alone during the past ten months amounted to more than 91 trillion, excluding investment spending, that is, an average.
;More than 9 trillion dinars per month are needed by the Ministry of Finance to ensure current spending such as salaries and other mandatory requirements.
On the other hand, Central Bank data show that the Ministry of Finance last November sold only $4.4 billion, equivalent to 5.8 trillion dinars, to the Central Bank.
As for non-oil revenues, they average 1.4 trillion dinars per month, according to Ministry of Finance data, which means that the total non-oil and oil revenues resulting from the sale of the dollar to the Central Bank amount to 7.2 trillion dinars, while what is required is more than 9 trillion dinars per month.
Accordingly, this means that there is a 20% deficit in the funds required for the obligatory monthly current expenses,
which makes the Ministry of Finance unable to collect all the funds at one time for the purpose of releasing the salaries of all ministries at the same time, as was the case previously, and it proceeded to release them in “installments,” and whenever It gradually became liquid.
Member of the Parliamentary Finance Committee, Jamal Cougar, says that the liquidity shortage crisis will continue in 2025, and
if the price of a barrel of oil falls to $60, we will not be able to secure employee salaries.
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