Tuesday, April 2, 2024
Why Lift Partial Government Support?, 2 APRIL
Why Lift Partial Government Support?
Economical 04/01/2024 Yasser Al-Metwally
Why lift partial government support? Is it linked to public finance reform?
The recent government decision to raise gasoline prices sparked widespread controversy and analyzes went in various ways.
Let us discuss the matter from the economic point of view of the decision, and based on our first reading of it, it became clear that
it was consistent with the vision and requirements of the International Monetary Fund, which stipulates that in order to achieve reforms, increasing government support by adopting tax policies that help diversify sources to enhance annual budgets.
From this standpoint, on which all capitalist and socialist theories are based, the process of capital turnover
aims to redistribute income fairly among segments of society.
This requires
imposing tax policies and
enhancing and
diversifying state revenues,
but these procedures are applied in countries that enjoy high stability.
Therefore, the timing of this decision may be considered inappropriate for the complex circumstances that the country is going through, especially market instability and structural distortions in the image of the Iraqi economy.
This is accompanied by a weakness in the economic culture that makes any decision regarding support face dissatisfaction.
Perhaps the reason for this weakness in the economic culture is due to the lack of transparency in the directions of tax revenues and their spending.
It is known that the capital cycle is based on the adoption of tax revenues, as I mentioned above, and
it goes in two important areas, the first of which is the
redistribution of income among citizens according to their standards of living, and the second is that one of the
government’s duties is to provide services in exchange for the amount of taxes it receives from taxpayers.
This is how economic theory works in all countries of the world.
The lack of transparency means the lack of clarity about the
size of tax revenue in the budget and the
ways of distributing it among services, as well as its
support for vulnerable segments.
This absence resulted in a weakness in the economic culture and its depth among the citizen,
which makes him not accept any decision related to increasing taxes or removing government support because
he is not aware of the directions of spending this money, which should go towards providing the best services to him.
The instability of the exchange rate along with the stability of wages and salaries leads to an impact on purchasing power.. How?
This is because the Iraqi market is accustomed to exploiting rumours.
Any decision is exploited by some merchants, thereby raising prices, and
the effect of this is to create dissatisfaction,
which is sometimes exploited by some at a time when the government has begun to find preliminary solutions, gain the satisfaction of the citizen, and talk about truly tangible achievements.
Therefore, we see the necessity of postponing the implementation of this decision until another time when
market stability and prices are achieved and the
standard of living improves and until the
citizen witnesses the results of the government’s efforts in implementing broad government service projects on the ground, which is nothing more than a point of view.
Then we, the economic media community, can convince the citizen that these projects require that he contribute to their perpetuation through his compliance with correct and sound economic decisions.
https://alsabaah.iq/94400-.html
%201.07.36%E2%80%AFp.%C2%A0m..png)
The Central Bank Of Iraq Clarifies The Mechanism For Depositing Oil Revenues Abroad, 2 APRIL
The Central Bank Of Iraq Clarifies The Mechanism For Depositing Oil Revenues Abroad
Logo of the Central Bank of Iraq Drains Economy News – Baghdad The Central Bank of Iraq revealed the mechanism for depositing oil revenues abroad, in response to a parliamentary question on the subject.
The document stated that the legal basis for depositing oil revenues in the “IRAQ2” account with the Federal Reserve Bank in New York is the expiration of the extension of Executive Order issued by the US President No. 13303 in 2003, which granted immunity to Iraqi funds deposited in the “DFI” account.
Deputy Governor of the Central Bank, Ammar Hamad, explained that the
“IRAQ2” account is used to deposit funds for Iraqi crude oil exports, and they are transferred to the Central Bank of Iraq’s account at the Federal Reserve Bank within 24 hours of receiving them. He stressed that
this mechanism ensures that the funds are not exposed to creditor claims, as they are funds belonging to the Iraqi government derived from the export of crude oil.
He added that a memorandum of understanding was signed between the Iraqi Ministry of Finance and the Central Bank of Iraq in 2014 regulating the work of the “IRAQ2” account, and that this memorandum is the legal basis for establishing the aforementioned account.
He pointed out that the immunity granted in accordance with the memorandum of understanding includes sovereign funds only, and does not include funds used for commercial purposes.
He explained that Iraq's foreign reserves are deposited with several external parties, including central banks and financial institutions, and are not limited to the Federal Reserve Bank.
He pointed out that the interest rates on these deposits vary according to the investment segment, the duration of the investment, and the institution with which the investment is made.
Finally, he explained that the company transporting the dollar from the Federal Reserve Bank to Baghdad International Airport is Orient, and that the insurance amount for one shipment is 414,000 US dollars, and that the transportation fees are 216,310 US dollars.
120 views Added 04/02/2024 - https://economy-news.net/content.php?id=42099
"RV UPDATE" BY BRUCE. 2 APRIL
Thurs. 28 March Bruce
