Government advisor explains details of 2025 budget deficit: “We are counting on oil prices”, 30 OCT

 Government advisor explains details of 2025 budget deficit: “We are counting on oil prices”

The Prime Minister's Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed today, Tuesday, that the financial deficit in the 2025 budget amounted to 64 trillion dinars, amid expectations of an increase in oil prices in the global market.

Saleh said, in a statement followed by "Al-Eqtisad News", that "next year's budget 2025 will not deviate from the constants approved in the Federal General Budget Law, the three-year budget submitted by the government and approved by the House of Representatives for the years 2023-2024-2025."

Regarding the budget deficit, he explained that “the 2025 budget will have a hypothetical deficit of 64 trillion dinars, which is a (precautionary) deficit that has been established by law to avoid fluctuations in the general budget revenues for the coming year, especially oil revenues, which are subject to fluctuations in the oil asset cycle and the conditions of energy markets in the world.”

Saleh added, "The price of a barrel of oil in the three-year budget, to which the 2025 budget is subject, was set at $70, and any annual increase in oil prices exceeding $70 per barrel of exported oil will reduce the hypothetical deficit in the budget  link

MILITIAMAN CC NOTES HIGHLIGHTS, 30 OCT

 MILITIAMAN CC NOTES HIGHLIGHTS

Summary

Iraq is facing political hurdles in forming a government, with a focus on the 2024 budget, oil exports, and anti-corruption efforts from the Central Bank.

Highlights

• 🏛️ Parliament struggles to elect a speaker amid delays and political turmoil.
• 🕊️ Proposed laws include personal status and general amnesty, impacting regional influences.
• 💰 2025 budget preparation emphasizes realistic revenue projections.
• 🛢️ Pressure mounts for resuming oil exports via Ceyhan Port due to winter fuel needs.
• 🔍 New Integrity Commission chairman aims to combat corruption and ensure accountability.
• 💻 Central Bank’s training for branch managers reflects a push towards international banking standards.
• 🏗️ Prime Minister emphasizes coordination for reconstruction and economic development.

Key Insights

• 📉 Political instability hampers Iraq’s governance, delaying essential reforms and budget approvals. Without effective leadership, economic progress remains stagnant.
• 🌍 The push for oil exports through the Ceyhan Port is critical, as European demand for energy rises during winter, impacting Iraq’s revenue generation.
• 📊 The 2025 budget aims for a careful balance between oil and non-oil revenues, highlighting the need for diversified income sources to stabilize the economy.
• ⚖️ Anti-corruption initiatives led by the new Integrity Commission chairman signify a renewal of efforts to tackle financial misconduct, which has long hindered Iraq’s development.
• 🌐 The Central Bank’s emphasis on international banking standards through training programs indicates a shift towards modernizing Iraq’s financial sector, essential for attracting foreign investment.
• 🏘️ Prime Minister Al Sudani’s focus on citizen welfare and economic improvement reflects a commitment to enhance living conditions and stimulate job creation.
• 🔍 Enhanced scrutiny of financial activities and the digital tracking of transactions are expected to expose corrupt practices, leading to greater accountability among government officials.

Dinar Revaluation: Essential Tips for Your Exchange Appointments

Continuous Decline In Dollar Prices.. Will Iraq Restore Balance To Its Economy?, 30 OCT

 Continuous Decline In Dollar Prices.. Will Iraq Restore Balance To Its Economy?

Economy  | 10/29/2024  Mawazine News – Economy  The US dollar exchange rates witnessed a decline on Monday in the markets of the capital Baghdad and in Erbil, the capital of the Kurdistan Region, with the opening of the country's main stock exchange.

The dollar prices decreased with the opening of the two main stock exchanges in Baghdad, Al-Kifah and Al-Harithiya, to record 150,750 dinars per 100 dollars, while yesterday, Sunday, it recorded 151,000 dinars per 100 dollars.

As for the selling prices in exchange shops in the local markets in Baghdad, they decreased, as the selling price reached 151,750 dinars, while the purchase price reached 149,750 dinars per 100 dollars.

In Erbil, the dollar recorded a decline, as the selling price in exchange shops reached 150,700 dinars per 100 dollars, while the purchase price reached 150,600 dinars per 100 dollars. https://www.mawazin.net/Details.aspx?jimare=256218

TIDBITS FROM MILITIAMAN, 30 OCT

  Militia Man 

Iraq is losing billions per month

... Why aren't they pumping oil out of the Ceyhan?

  I think that's because they need to value the assets...which is oil coming out of the ground...

What is going to be the components of that 'base currency' they talk about. 

 What is the base currency they talk about?  

The Iraq dinar.  If it's going to be a base currency what's the real effective exchange rate.  And that's those budget tables in 2024.  That's what I'm looking for...I think we're going to see them in very short order.

You haven't seen the investment side of the 2024 budget.  That's where everybody should be paying attention. 

 If you own dinar you should be paying attention...They haven't exposed the 2024 investment side of the budget. 

 Why?  In my view it's exchange rate oriented... They need the exchange rate so they have the final accounts...

INTEL FROM A FRIEND THAT WORKS WITH THE TREASURY CONTRACTOR BY GOLDEN ERA ABOUT "DOUBLE DIPPING"

 

The Ministry Of Finance Issues A Directive To Withdraw The Hand Of The Director General Of The General Tax Authority, 30 OCT

 The Ministry Of Finance Issues A Directive To Withdraw The Hand Of The Director General Of The General Tax Authority

Buratha News Agency1392024-10-29  The Ministry of Finance issued a directive to withdraw the Director General of the General Tax Authority. This came after the Parliamentary Integrity Committee submitted a recommendation to the Prime Minister yesterday, Monday, to withdraw the Director General of the Tax Authority.

 The committee stated in a statement, “The Parliamentary Integrity Committee followed with great interest the audio file attributed to the Director General of the Tax Authority in which he talks about manipulation of tax records in exchange for bribes.”

The statement added, "Based on its role and keenness to achieve the values ​​of integrity and combat corruption, the committee addresses the Prime Minister to submit a recommendation to withdraw the Director General's hand until the investigations are completed and the validity of the registration is decided by the competent judicial authorities to ensure the integrity of the procedures and prevent any cases of manipulation in the future."

Yesterday, Monday, the Prime Minister ordered an investigation into an audio leak attributed to the Director General of Taxes.   https://burathanews.com/arabic/news/452162