THE FINANCIAL PAIN HAS REACHED ITS PEAK, AND IMPLEMENTING REFORMS NOW IS MERELY A PUBLICITY STUNT FOR THE SUDANESE – EXPERT
THE FINANCIAL PAIN HAS REACHED ITS PEAK, AND IMPLEMENTING REFORMS NOW IS MERELY A PUBLICITY STUNT FOR THE SUDANESE – EXPERT
Following the Economic Council’s decision on Monday to reduce government spending and maximize revenues, during a meeting chaired by Prime Minister Mohammed Shia al-Sudani, economist Ziad al-Hashemi said that the caretaker government’s presentation of a financial reform plan at the last minute aims to whitewash its reputation in its final days.
He hopes this announcement will encourage political parties to reappoint al-Sudani for a second term and give him the opportunity to implement this plan.
Al-Hashemi expressed surprise at what is happening in Iraq, noting that governments around the world present their financial plans at the beginning of their formation to address financial errors, improve the quality of spending, maximize returns, and formulate their financial policies in a systematic and disciplined manner.
He emphasized that the financial pain has reached the core of the government, and only harsh and painful measures that harm the citizen above all others will suffice.
(After the axe has fallen) The Iraqi government is playing for time and trying to score last points in its favor, and is proposing a financial reform plan to reduce spending and increase revenues!
Governments around the world, at the beginning of their formation, present their financial plan to address financial errors, improve the quality of spending, maximize returns, and formulate their financial policy in a systematic and disciplined manner, but what is happening in Iraq is something else entirely!
For the past four years, the Iraqi government’s program has been based on expanding spending through a highly politicized budget, which has inflated salaries and subsidies, piled up government employees beyond the needs and capacity of state institutions, magnified the financial deficit and accumulated debts, and allowed corruption to operate freely!
All of this happened at a time when Iraq’s financial revenues from oil sales and other sources were decreasing, yet that government paid no attention to either internal warnings or international reports, all of which were sounding the alarm in the face of that government and warning it of the dangers of inflated spending in light of deteriorating revenue, but there was no response!
After the opportunities for reform were lost and the financial problem grew dangerously during the past years, the government now appears at the end of its lifespan with a financial reform plan after the financial pain reached the government’s core and nothing but harsh and painful treatments that harm the citizen before anyone else will work for it!
It is unclear how the caretaker government will implement its financial plan, as it is a government stripped of powers and does not have enough time to implement all those major reform measures. Who will implement, who will commit, and who will set the timelines for implementation, and we are on the verge of forming a new government!
It is highly likely that this government wants to whitewash its reputation in its final days by announcing the financial reform plan, perhaps as a way to encourage political parties to reappoint the current Prime Minister and give him the opportunity to implement his reform plan!
But in any case, the next government, whether the current prime minister is reappointed or someone else is appointed, will face a difficult financial test that will force it to implement more harsh and painful measures, in which financial austerity may be the order of the day for the next four years!
