Finance expresses its readiness to implement the budget law and grant 50% of port revenues to Kurdistan, 10 SEPT
On Saturday, Minister of Finance Taif Sami stated that there is currently no agreement between the Federal Border Ports Authority and the Kurdistan Region on harmonizing customs duties pricing.
Sami spoke at the Parliamentary Finance Committee in the Iraqi Parliament, attended by an agency correspondent.
According to our correspondent, Sami stated that there is no customs agreement between the federal border crossings and the Kurdistan Region. This is because customs duties in the region are lower than in other ports across Iraq. The entry of cigarettes through the region is given as an example by Sami.
According to our correspondent, Sami stated that there is no customs agreement between the federal border crossings and the Kurdistan Region. This is because customs duties in the region are lower than in other ports across Iraq. The entry of cigarettes through the region is given as an example by Sami.
During a recent meeting, the minister confirmed her commitment to enforce the provisions of the country’s financial budget law. She also proposed that 50% of the revenue generated through official border crossings should be allocated to the governorates in the Kurdistan Region. Additionally, she highlighted that the region currently has five unofficial border crossings.
Advisor to the Prime Minister Al-Najar revealed that the monetary mass of the local currency has reached the barrier of 116 trillion dinars…of which between 30 and 40 trillion dinars are circulating within the banking system…
Kaperoni
…I see the dinar rising over the next several years gradually via a float as Iraq continues to pass laws, encourage investment, diversify and achieve economic growth increase in GDP…Only with that success can the dinar rise as a result...The Central Bank of Iraq will then institute a monetary policy that counters inflationary pressure created by that success raising the dinar value.
Clare (KTFA)
Article: “America Is On The Top Of Global Gold Reserves”
Quote: “The data of the World Gold Council indicate that Saudi Arabia maintains the first place in the Arab world among the countries most hedged with gold, and it is in an advanced rank globally, as it ranks 17th with total reserves of 323.1 tons, and Lebanon is second in the Arab world (21 globally) with a score of 286.8 tons, and Algeria is in third place with 173 tons. 6 tons,Iraq fourth with 132.6 tons of gold, while Egypt ranks fifth in the Arab world with 125.9 tons.”
Will rising oil prices reduce the 2023 budget deficit?
According to economist Nabil Al-Marsoumi, the oil revenues earned until August 2023 have reached $61.513 billion, which is equivalent to 80 trillion dinars. However, the estimated oil revenues in the 2023 budget are $90 billion, equivalent to 117 trillion dinars.
Al-Marsoumi stated in a blog post on his personal Facebook account, which was followed by “Baghdad Today”, that if the high oil prices continue and Iraq sells its oil at $85 per barrel, it is possible for the country to generate oil revenues of $8.7 billion per month during the remaining third of the year.
During a recent speech, he noted that Iraq is expected to generate up to $34.8 billion in oil revenues between September and December of 2023. This should bring the total oil revenue for 2023 to $96.213 billion or 125 trillion dinars. The surplus of $6.213 billion, or 8 trillion dinars, will help offset the deficit in the 2023 budget, but only if the non-oil revenues, estimated at 17 trillion dinars, are fully realized. Unfortunately, it may be unlikely given that the net non-oil revenues achieved in the first half of 2023 were only 421 billion dinars. Therefore, while the high price of oil is beneficial, it may not be enough to significantly reduce the budget deficit in 2023.
According to official figures released by the Iraqi Ministry of Oil, Iraq has achieved record-high financial revenues of over $115 billion in the past year (2022), thanks to the export of crude oil. This marks a significant increase from previous years and is a noteworthy achievement for the country.
According to the figures, the daily export rate was 3.32 million barrels, resulting in an annual export of 1.21 billion barrels.
On Monday, economist Nabil Al-Marsoumi announced that Iraq had achieved its highest trade surplus in 2022. He also noted that the surplus was not the result of any reforms.
In his post, Al-Marsawi explained that Iraq achieved the highest trade surplus in the past year by pointing out that it is “the difference between the value of exported goods and imported goods.”
He said, “In the history of the oil industry, which is almost a hundred years old, the surplus achieved for the year 2022 is significant. It amounts to 53.54 billion dollars and is due to the increase in oil exports. The total oil exports amounted to about 120 billion dollars, of which 115 billion dollars came from crude oil exports. The remaining 5 billion dollars mostly came from black oil exports.”
Al-Marsoumi explained that the increase in Iraq’s trade surplus is not the result of any domestic efforts towards reform, development or economic diversification, but is instead due to an external factor – specifically, the rise in oil prices. He noted that the average annual oil price in 2022 exceeded $95 per barrel.
A Kurdish bloc calls for accelerating the legislation of the oil and gas law
The Patriotic Union of Kurdistan parliamentary bloc has urged the government to speed up the drafting of the oil and gas law, which has been pending since 2005. They emphasized that legislating the law is the only solution to resolve the disputes between the region and the center.
The oil and gas law has not been enacted since 2005, which hinders efforts to resolve crises between Baghdad and Erbil, according to Suzanne Mansour, spokesperson for the bloc, in an interview with Agency.
During a recent statement, she emphasized that implementing the law would benefit Iraq as a whole and help resolve any conflicts between the region and the central government. She also emphasized the importance of collaboration between Baghdad and the region to expedite the process of drafting and enacting the oil and gas legislation.
She highlighted that “everyone hopes to resolve the outstanding controversial points and proceed with the procedures for legislating the law within the dome of Parliament.”
The Oil, Gas and Natural Resources Committee has confirmed Parliament’s intention to pass the oil and gas law in the current session. They have also indicated that passing the law could help resolve problems between Baghdad and Erbil.
Finance is ready to implement the budget law and grant 50% of the outlets’ revenues to Kurdistan
Shafaq News / Finance Minister Tayf Sami said on Saturday that there is no consensus between the Federal Border Ports Authority and the Kurdistan Region on the unification of the pricing of customs duties.
Sami was speaking during her hosting by the Parliamentary Finance Committee in the Iraqi parliament and was attended by a correspondent of Shafaq News Agency.
Our correspondent quoted Sami as saying, "There is no consensus in customs between the federal border crossings and the Kurdistan region, considering that the customs duties in the region are lower than other ports in Iraq, and a good example of this is the entry of cigarettes through the region," she claimed.
She stressed that "zero' control must be restored, not only in one location, but in different locations with reduced customs duties in order to reduce smuggling operations."
The minister expressed her readiness to apply the text of the country's financial budget law, and that 50% of the revenues of the official border ports will be the share of the provinces in the Kurdistan region," noting that: There are 5 unofficial border ports in the region.
A “disturbing” economic vision about the relationship between oil prices and the budget deficit
Yesterday, on Friday, September 8, 2023, economist Nabil confirmed that the oil revenues achieved until August 2023 amounted to $61.513 billion, which is equivalent to 80 trillion dinars. He also indicated that the estimated oil revenues in the 2023 budget are $90 billion, which is equivalent to 117 trillion dinars.
According to a post by Al-Marsoumi, which I followed for information, the oil revenues earned until August 2023 amount to $61.513 billion, which is equivalent to 80 trillion dinars. He also stated that the estimated oil revenues in the 2023 budget are expected to reach $90 billion, which is equivalent to 117 trillion dinars.
He said that if Iraq continues to sell its oil at $85 a barrel, they could earn $8.7 billion per month in oil revenues for the remaining third of the year.
During a discussion, he highlighted that the revenue generated from oil could potentially reach 34.8 billion dollars between the months of September and December 2023. This would result in a total oil revenue of about 96.213 billion dollars or 125 trillion dinars for the year of 2023. Additionally, this would lead to a surplus of 6.213 billion dollars, or 8 trillion dinars, which can be used to reduce the deficit in the 2023 budget. However, this is only possible if all non-oil revenues estimated in the 2023 budget, which is about 17 trillion dinars, are realized. This may be unlikely though.
According to the economist, the net non-oil revenues earned in the first half of 2023 were only 421 billion dinars. This means that continuing with the budget deficit for the year 2023 will not significantly reduce the high price of oil.
The current draft budget shows a deficit of 63.275 trillion dinars. This is based on the assumption of a $70 per barrel price for oil, as more than 95 percent of budget revenues are generated from oil sales. These figures were shared by the Council of Ministers.