WOTS FRI JUN 17 22 There is no share for the Kurdistan region in the next general budget, except after its agreement with the Ministry of Oil
oil is at 114
Minister of Finance: There is no share for the Kurdistan region in the next general budget, except after its agreement with the Ministry of Oil
The Iraqi Finance Minister, Ali Abdul-Amir Allawi, said that the Federal Supreme Court’s decision to invalidate the oil and gas law in the Kurdistan region prevents the central government from allocating a portion of the upcoming general budget as a share for the Kurdistan Region .
In answering a question in this regard in an interview with the (Iraq Oil Report) website in Baghdad, Allawi stated that the previous budgets included paragraphs allocating 12% of expenditures to the Kurdistan Region, on the condition that Erbil sends the equivalent of oil revenues exported from the region’s fields, but in fact This agreement was not implemented, and was replaced by temporary agreements between Baghdad and Erbil, according to which Kurdistan received semi-regular monthly transfers worth 200 billion Iraqi dinars ($138 million), but these transfers will not continue .
Allawi said: My job is to implement the law, not to break the law. In the 2021 budget, there was a clear condition that the Kurdistan Regional Government must either hand over oil exports to SOMO or hand over the equivalent of money, which did not happen, so transfers to the Kurdistan Regional Government as dues from the general budget are no longer valid .
This time, if SOMO informs us that it did not have a legal basis, and that the Ministry of Oil did not find a legal structure to cover its ownership of that oil, then for us it basically means that this oil was seized and produced (illegally) and exported by the Kurdistan Regional Government (in a legal form). illegal) according to the interpretation of the Federal Court, which we consider at the federal level the highest legal authority .
He added, when we sent the money in the past, we were discussing this agreement on the basis that the oil belongs to the Kurdistan Regional Government and they have the right to extract it, whether we agreed or not with the oil contracts and the partnership contracts for extractive companies in Kurdistan, but this issue was not raised previously .
Now, the issue of ownership of the oil fields in the region has arisen, so if we transfer their entitlements to the budget - whatever their percentage - the other side of the equation will not be addressed at all, and in fact there is no other side to the equation, in the past there was an explicit recognition that this is oil The Kurdistan Regional Government, but now they do not have the right to act, and according to the decision of the Federal Court - although the Kurdistan Region will not accept this talk - now this oil belongs to us .
Al-Kazemi's advisor presents 8 solutions to find additional resources outside the rentier framework
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified today, Friday, two guarantor pillars for investment and operational production, while offering 8 solutions to find additional resources outside the rentier framework.
Saleh said, "Government employment has become a master of the state's financial leverage with little actual productivity, and has reached the point of danger, despite the positive outlook for the rapid temporary financial accumulation of oil revenues in the current exceptional international circumstance."
He added, "Without finding a sustainable productive association capable of productive employment of unemployed human capital, this matter will remain the first headache for the Iraqi nation's concern in the future of development and economic prosperity."
He continued, "It is necessary to think from outside the box and with priorities that do not definitively depart from the active and honorable role of the productive national private sector and with social foundations, to be the gradual objective alternative to the current operational rentier model, which is a very closed consumer context and effective in employment and a drain on the country's resources prepared for production and the real accumulation of the country's wealth ".
He pointed out that "the state in all its bodies faces a national and moral responsibility in working on the productive employment of the people's forces, and all constitutional bodies must strive to provide a decent and practical option with two pillars guaranteeing investment and operational production, the first: linking the financing of government soft loans or guaranteed by the government itself and granted To market makers in the private sector, the number of workers that will be provided by the digital database of the labor market, and according to legal contracts that guarantee the rights of all parties, and according to a flexible, comprehensive and legally regulated investment program.
He continued: "As for the second pillar, it is the provision of pension rights to all workers in the private sector, according to a parallel formula to the current National Pension Fund, and the Fund deals effectively and flexibly with permanent workers in the private sector, provided that the state assumes part of the financing of the private pension fund and considers it an important part of its structure. Support in the state’s general budget and an embodiment of the state’s socialism in supporting the market.
Speaking about proposals to provide support for the state budget outside the oil-dependent rentier framework, he stressed that "Iraq urgently needs to think (from outside the current rentier fund), and work according to models of partnership between the state and the social market first, and secondly to find financing mechanisms that do not depend on revenues. The third is to encourage private investment and according to clear long-term government policies, fourthly, to provide flexible means in domestic financing such as dealing with sovereignly guaranteed bonds, fifthly, to recycle funds from surplus units to deficit units capable of investing, and seventh is to re-establish Recycling and allocating financial resources through banks or funds, and finally heading towards work-running and income-generating activities.
He concluded by saying, "What was proposed falls within a future vision that revolves in the mind of Prime Minister Mustafa Al-Kazemi, when he referred to the depletion of the state's operating budget, which consumes depleted oil resources without a productive return."
Barzani's party to a tactical withdrawal to join Sadr if it fails to achieve its goals through the framework majority
Parliamentary experiences said, Friday, June 17, 2022 that the replacements of the Sadrist movement will increase the seats in the coordination framework and their allies and make them a parliamentary .majority And a framework majority means the difficulty of the Kurdistan Democratic Party candidate winning the presidency, .which pushes him to play the role of the blocking third in alliance with the sovereignty According to monitoring sources, this prompts the Kurdistan Democratic Party to leave the political process as a .tactical measure, to join al-Sadr, if it despairs of achieving its goals in light of the current conditions
On June 16, 2022, the Kurdistan Democratic Party's Washe newspaper, citing sources in the Sovereignty Alliance, said that the withdrawal from the House of Representatives is under study and we are discussing it, but we have not taken .a final decision The sources added that understandings are continuing between the Democrat and the Sovereignty Coalition to .coordinate the situation after their ally, the Sadrist movement, withdrew
On one condition: Al-Fateh sets a date soon to form the new government
Today, Friday, a member of the Al-Fateh Alliance, Ali Al-Fatlawi, set a date soon to form the new .government, while setting one condition to achieve this matter
Al-Fatlawi told (Baghdad Today), that "the political blocs must reject all Iranian, Turkish, Emirati ".and American foreign interference, and that their loyalty should be to Iraq only
He added, "The date for forming the government, after the political developments that have ".taken place on the scene, may take one month or less, provided it is good It is noteworthy that the Iraqi political scene has undergone an important change in the past few days, represented by the withdrawal of the members of the Sadrist bloc from Parliament as a whole through a request submitted to Parliament Speaker Muhammad al-Halbousi, by order of the leader of the Sadrist movement Muqtada al-Sadr, which, according to observers, constituted a turning point in the course of the political process in Iraq, may lead to resolving the political .impasse or complicate matters further
A Leader In The Framework Announces The Start Of Official Dialogues To Form The Government
The leader in the coordination framework, Turki Al-Otbi, announced, on Friday, the date of the dialogues to form the new government, while noting that the next prime minister will have the consensus of the Shiite house.
Al-Otbi said in an interview with Al-Information, “The government formation dialogues actually started 48 hours ago by the framework and its allies, and the movement will be accelerated next week through direct meetings with multiple political forces and blocs,” stressing that “there are important initial understandings and they will be strengthened in the days.” coming.”
Al-Otbi added, “The date for announcing the name of the prime minister’s candidate will be after agreeing on the mechanisms for forming the government and the nature of the tasks and files,” noting that “no names have been presented so far because it is too early for this path, but in all cases the candidate must have the consensus of the Shiite house first.” before offering it to the rest of the partners.
He pointed out that "the political forces are aware of the seriousness of the political blockage and the importance of understandings in getting Iraq out of its current crisis in expediting the formation of a consensual government that represents all components."
Iraq suffers from a political blockage that has begun to affect important files, most notably the economic one, in recent months
The Kurdistan Democratic Party Sets A Date For Resolving Its Position Regarding The Developments Of The Political Process
Today, Friday, a member of the Kurdistan Democratic Party, Mahdi Abdul Karim, said that the party will decide its position on the political process in the next few days, after holding a meeting with the Sovereignty Alliance, pointing out that the file of the Presidency of the Republic is still not settled.
Abdul Karim told Al-Maalouma that "discussions and dialogues are still ongoing between the Democratic Party and the National Union on many files, including the Presidency of the Republic, as discussions continue between the two parties to solve problems, one of which is related to this position."
He added that "the file of the Presidency of the Republic is still not settled between the Democratic Party and the National Union, as the matter in this matter is left to the leadership of the party in order to resolve it in the coming days."
And he indicated that "the Democratic Party, following the changes in the political equation after the withdrawal of the Sadrist bloc, will have a position during the next few days after the meeting of the parties of the Sovereignty Alliance in order to come up with a unified position regarding the political process.
Disclosure of the mechanism of the agreement between Erbil and Baghdad regarding oil imports
The Kurdistan Regional Government revealed, today, Friday, the mechanism of agreement with the federal government regarding oil imports, confirming the work to establish two oil companies, while it denied smuggling gasoline from the center and south to the provinces of the region.
The spokesman for the Kurdistan Regional Government, Jutiar Adel, said in a press statement followed by / Mawazine News, that "negotiations with Baghdad are continuing regarding the oil and budget files and the rest of the files," noting that "the Kurdistan Regional Government has agreed with the current Prime Minister Mustafa Al-Kazemi regarding these two files, which ended with an agreement." 2021 budget.
He added that "many wonder about the Kurdistan government not handing over oil imports to the center, as it was agreed, according to the budget law, to hand over the Iqam 250,000 barrels of oil to SOMO after auditing the region's expenditures and imports, and it was agreed to hand over the center to the region 320 billion dinars per month until the audit is done, except It was reduced to 200 billion dinars for no reason, noting that “the issue of negotiating with the federal government over the oil file, took a lot from the life of the current government of the region.
” However, the federal government sent during the current year only three payments, such as (200) billion dinars per month.”
He stressed, "the need for coordination between the two governments, as any break in the relationship will affect the two parties with many issues," explaining that "the Kurdistan Ministry of Natural Resources operates according to Iraqi law, and that lawsuits continue between Baghdad and Erbil regarding the oil file."
He pointed out that "the Kurdistan Regional Government is continuing to negotiate with the center on the oil file, and the legal procedures in the court expect the settlement to be in its favour."
Adel stated that "the Kurdistan Regional Government has a contract with Turkey for a period of 50 years to transport oil only through the Turkish Ceyhan and not to sell it," explaining that "the Kurdistan Regional Government is now working to establish two oil companies: the first in the name of (Kroc) Company, which is specialized in oil exploration, and (Kurdish) company ( Como), specialized in the export and marketing of oil," noting that "this is the last paper submitted to Baghdad regarding the oil file."
Al-Hakim leads mediation to discourage Al-Sadr from withdrawing from the political process
Rahim al-Aboudi, a leader in the al-Hikma movement, said that al-Hikma leader Ammar al-Hakim initiated a mediation to discourage al-Sadr from the decision to withdraw from the political process.
He confirmed the start of the mediation movement Thursday towards Al-Sadr, without clarifying whether direct communication took place between the two parties or not, indicating that there is political support from some parties to the coordination framework for Al-Hakim's mediation. Al-Aboudi did not reveal whether the mediation included acknowledgment of Al-Sadr's right to form a government, but he acknowledged the difficulty of convincing Al-Sadr to reverse his decision and his return and his parliamentary bloc's representatives to the political process.
After Changing The Parliament’s Map” .. Al-Haidari: The Framework Is Able To Pass The President Of The Republic
A member of the State of Law coalition, Kazem Al-Haidari, confirmed that the coordinating framework has the ability to pass the presidential candidate, especially with the addition of new deputies after the end of the legislative recess of Parliament.
Al-Haidari told Al-Maalouma, "The coordinating framework and the parties and parties allied with it with a part of the sovereignty can achieve the number required to pass the candidate for the post of President of the Republic."
He added that "the coming days will reveal the new number that will be added to the coordination framework of the new representatives, as it is not possible at the present time to resolve the file of the Presidency of the Republic, especially since Parliament is still at the beginning of its legislative recess."
And he indicated that "the coordinating framework will not alone be able to achieve two-thirds of the parliament's number in order to vote on choosing a candidate for the presidency, but it will achieve the required number through the support of the National Union, deputies from Azm and the independents, in addition to a spectrum of the sovereignty coalition, as well as the participation of the rest of the parties who believe in the laws The ruling party and the political process will participate in forming the new government.”
Iraq without a budget in 2022
Indicators of Iraqi political confusion do not call for optimism about the possibility of approving the financial budget for the current year, especially with the entry of the government formation crisis into unprecedented complications, and in light of the current intersections within Parliament, which entered its legislative recess several days ago and lasts for a whole month.
The budget specifies the items of state expenditures during a year, especially for salaries, support, and repayment of debt burdens , as well as the target for state revenues. Despite the government’s success in obtaining about $18 billion within the emergency security law recently approved by Parliament to secure energy imports, finance important service projects, and finance the Social Welfare Fund , officials confirm the country’s continued need for the budget that was drafted earlier at nearly 90 billion. dollar.
And last Tuesday, Prime Minister Mustafa Al-Kazemi stressed in a speech he delivered on the sidelines of a meeting of members of his government that "the country needs the new budget in order for the state to proceed with its projects to serve the citizen."
But the Federal Court stripped Al-Kazemi’s government of all powers, as it is a caretaker government with limited powers, and it is not entitled to propose important bills with the invalidation of all appointment orders of higher grades issued during the period of the caretaker business.
The deputy in the Iraqi parliament, Ahmed Hama Rashid, said, “The current government is unable to approve the country’s budget for this year, because it does not have the powers to legislate laws according to what was approved by the Federal Court,” describing Al-Kazemi’s talk about the necessity of approving the budget. more"
He explained to Al-Araby Al-Jadeed that "the 2022 budget is supposed to be approved since the end of last year, but the political impasse that Iraq has been experiencing for nearly 8 months has prevented this."
A member of Parliament's Economic Committee, Naguiba Najib, considered the recent decision of the Federal Court regarding the powers of the caretaker government, as "restricting the hand of the current government with regard to approving the budget."
She explained that "the complexity of the political scene around the formation of the government and the resignation of the Sadrist movement's representatives from Parliament was a clear message that the crisis is heading towards complexity, so the 2022 budget will not see the light this year," noting that even if a new government is formed, the budget will be a supplementary part for two months or more. Only three months."
She pointed out that "entering Iraq in the sixth month of this year without legislating the country's general budget will deprive the government of paying its internal and external obligations and spending on the requirements of projects and services necessary for citizens.
Likewise, the economic expert, Ali Al-Fariji, considered that the political crisis over the formation of the next government has plunged Iraq into a new chaos over how to invest the state's revenues and capabilities.
Al-Fraiji told Al-Araby Al-Jadeed that it is difficult to pass the budget for this year in light of the political turmoil that Iraq is witnessing, unless the politicians surprise us by striking the laws, the constitution, and the instructions of the financial management of the state, noting that Iraq today is entering into an economic chaos that is added to the situation. The amount of negative accumulations of previous years.
After Al-Sadr withdrew .. “financial paralysis” in Iraq due to the ”“government formation crisis
Warnings of Iraq remaining without a financial budget escalated due to the delay in forming the government, amid concern about the repercussions of the global food crisis, at a time when local .food production fell below the level of demand with the increase in population inflation The differences between the Iraqi political blocs since the parliamentary elections on the tenth of last October have prevented the formation of a new government, while Iraqi laws prevent the ".current government from disposing of oil sales funds as a "caretaker government
The World Bank said in a report, Thursday, that "Iraq is gradually emerging from the deep recession that it experienced in 2020 due to the Corona virus pandemic and the accompanying collapse in oil prices, as after a contraction of more than 11% in 2020, the Iraqi economy achieved a growth rate of 2.8 percent in 2021, with the easing of restrictions imposed by the .Corona pandemic on movement
He added that The report quoted the Regional Director of the Mashreq Department at the World Bank, Saroj Kumar Jah, as saying that "Iraq has a unique opportunity to carry out urgent and wide-ranging structural reforms through 3 means, which are to take advantage of the fiscal space resulting from its recent sudden oil revenues, and to redirect government spending towards programs that ".It works to improve growth and address the country's human capital crisis
The World Bank report confirms that “the current food security challenges in Iraq have intensified in the midst of the current rise in global commodity prices, while the level of local food production is less than the demand caused by rapid population growth, and severe droughts and other climate change factors have exacerbated This situation
The report believes that "the delay in forming the government and approving the 2022 budget will lead to limiting the use of the country's sudden oil revenues, as the actual ceilings of the 2021 budget have been reached, and suspending the implementation of new investment ".projects, which may reduce economic growth
The previous parliament was supposed to legislate the 2022 budget law, but the holding of early elections in October 2021, and the failure to form a new government after the parliamentary elections, prevented the legislation of the budget, which raised the concern of the popular circles, .especially with the increasing size of the economic crisis in Iraq
This situation has caused delays in farmers’ entitlements, disruption of ration card coverage, suspension of investment projects that employ the workforce, as well as disruption of new projects that need to be included in the financial budget, while the current government remains .with restricted powers to run daily affairs
financial paralysis
The Iraqi Council of Ministers adviser, Mazhar Muhammad, believes that "the delay in approving the 2022 budget has led to a paralysis in financial life, as the government is committed to a limited spending method without sufficient ability to deter economic problems and address them, which calls for the need to speed up access to the financial problems." “The delay in enacting the budget law led to a slowdown in the overall economic activity, including investment spending
which is necessarily included in the budget laws, up to side matters such as spending on some vulnerable groups such as social protection, and caring for the poor, although the adoption of the ”.food security law focused on some of these Categories The Iraqi parliament recently approved the Food Security Law, which is a mini financial budget that came to remedy the crisis of the delay in approving the budget, in light of the country’s need for extensive spending to finance official departments, with exchange doors still waiting for .the legislation in force Economic researchers believe that Iraq needs a government with full powers to invest the financial abundance, and pump the largest amount of it into the markets to control the prices of goods and food, and move the investment wheel, especially since hundreds of projects still need cash payments to resume their work. A secure economic situation in line with the current .situation
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After Changing The Parliament’s Map” .. Al-Haidari: The Framework Is Able To Pass The President Of The Republic
A member of the State of Law coalition, Kazem Al-Haidari, confirmed that the coordinating framework has the ability to pass the presidential candidate, especially with the addition of new deputies after the end of the legislative recess of Parliament.
Al-Haidari told Al-Maalouma, "The coordinating framework and the parties and parties allied with it with a part of the sovereignty can achieve the number required to pass the candidate for the post of President of the Republic."
He added that "the coming days will reveal the new number that will be added to the coordination framework of the new representatives, as it is not possible at the present time to resolve the file of the Presidency of the Republic, especially since Parliament is still at the beginning of its legislative recess."
And he indicated that "the coordinating framework will not alone be able to achieve two-thirds of the parliament's number in order to vote on choosing a candidate for the presidency, but it will achieve the required number through the support of the National Union, deputies from Azm and the independents, in addition to a spectrum of the sovereignty coalition, as well as the participation of the rest of the parties who believe in the laws The ruling party and the political process will participate in forming the new government.”
Al-Hakim leads mediation to discourage Al-Sadr from withdrawing from the political process
Rahim al-Aboudi, a leader in the al-Hikma movement, said that al-Hikma leader Ammar al-Hakim initiated a mediation to discourage al-Sadr from the decision to withdraw from the political process.
He confirmed the start of the mediation movement Thursday towards Al-Sadr, without clarifying whether direct communication took place between the two parties or not, indicating that there is political support from some parties to the coordination framework for Al-Hakim's mediation. Al-Aboudi did not reveal whether the mediation included acknowledgment of Al-Sadr's right to form a government, but he acknowledged the difficulty of convincing Al-Sadr to reverse his decision and his return and his parliamentary bloc's representatives to the political process.
Iraq without a budget in 2022
Indicators of Iraqi political confusion do not call for optimism about the possibility of approving the financial budget for the current year, especially with the entry of the government formation crisis into unprecedented complications, and in light of the current intersections within Parliament, which entered its legislative recess several days ago and lasts for a whole month.
The budget specifies the items of state expenditures during a year, especially for salaries, support, and repayment of debt burdens , as well as the target for state revenues. Despite the government’s success in obtaining about $18 billion within the emergency security law recently approved by Parliament to secure energy imports, finance important service projects, and finance the Social Welfare Fund , officials confirm the country’s continued need for the budget that was drafted earlier at nearly 90 billion. dollar.
And last Tuesday, Prime Minister Mustafa Al-Kazemi stressed in a speech he delivered on the sidelines of a meeting of members of his government that "the country needs the new budget in order for the state to proceed with its projects to serve the citizen."
But the Federal Court stripped Al-Kazemi’s government of all powers, as it is a caretaker government with limited powers, and it is not entitled to propose important bills with the invalidation of all appointment orders of higher grades issued during the period of the caretaker business.
The deputy in the Iraqi parliament, Ahmed Hama Rashid, said, “The current government is unable to approve the country’s budget for this year, because it does not have the powers to legislate laws according to what was approved by the Federal Court,” describing Al-Kazemi’s talk about the necessity of approving the budget. more"
He explained to Al-Araby Al-Jadeed that "the 2022 budget is supposed to be approved since the end of last year, but the political impasse that Iraq has been experiencing for nearly 8 months has prevented this."
A member of Parliament's Economic Committee, Naguiba Najib, considered the recent decision of the Federal Court regarding the powers of the caretaker government, as "restricting the hand of the current government with regard to approving the budget."
She explained that "the complexity of the political scene around the formation of the government and the resignation of the Sadrist movement's representatives from Parliament was a clear message that the crisis is heading towards complexity, so the 2022 budget will not see the light this year," noting that even if a new government is formed, the budget will be a supplementary part for two months or more. Only three months."
She pointed out that "entering Iraq in the sixth month of this year without legislating the country's general budget will deprive the government of paying its internal and external obligations and spending on the requirements of projects and services necessary for citizens.
Likewise, the economic expert, Ali Al-Fariji, considered that the political crisis over the formation of the next government has plunged Iraq into a new chaos over how to invest the state's revenues and capabilities.
Al-Fraiji told Al-Araby Al-Jadeed that it is difficult to pass the budget for this year in light of the political turmoil that Iraq is witnessing, unless the politicians surprise us by striking the laws, the constitution, and the instructions of the financial management of the state, noting that Iraq today is entering into an economic chaos that is added to the situation. The amount of negative accumulations of previous years.
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