Wednesday, October 30, 2024
Just wanted to reiterate once again that the budget is based on a the prices of a barrel of oil and not the rate of the dinar BY MNT GOAT, 30 OCT
WHAT IS THE TOTAL SPENDING AND PRICE OF A BARREL OF OIL IN THE 2025 BUDGET?
The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, specified the expected total spending, the hypothetical deficit, and the price of a barrel in the 2025 budget.
Saleh said, “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, especially in the principles and objectives consistent with the government program.”
He added, “Despite this, the 2025 budget must be hedged with 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 that are subject to fluctuations in the oil asset cycle and the conditions of energy markets in the world, as long as the total spending ceiling will touch perhaps 200 trillion dinars, depending on the financial and economic circumstances of the country.”
He explained that “the price of a barrel of oil in the three-year budget, to which the 2025 budget is subject, was set at $70 and an export capacity of 3.4 million barrels per day for the purposes of determining oil revenues in the general budget.”
(Just wanted to reiterate once again that the budget is based on a the prices of a barrel of oil and not the rate of the dinar. So, don’t let these stupid intel gurus tell you otherwise. They never held up announcing a budget because of the RV. It’s all just a pack of lies and here is yet more proof!)
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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.