The House of Representatives sends the 2024 budget schedules to the Ministry of Justice - The Iraqi Facts
Today, Tuesday (June 4, 2024), the House of Representatives sent the financial budget schedules for the year 2024 to the Ministry of Justice.
The video for this My FX Buddies blogpost is below here:
The Secretary-General of the House of Representatives, Safwan Bashir, completed the procedures for signing the Parliament’s decision letter approving the budget schedules and sent it to the Ministry of Justice/Iraqi Facts and the Ministry of Finance.
Yesterday, the House of Representatives voted to approve the budget schedules.
Parliament completes the procedures for its decision to approve the budget schedules and sends it to the Ministries of Finance and Justice
The House of Representatives announced, today, Tuesday, the completion of its decision procedures to approve the budget schedules, and sending it to the Iraqi Ministries of Finance, Justice, and Ministries.
The Council's Media Department stated in a statement - received by the Iraqi News Agency (INA) - that "The Secretary-General of the House of Representatives, Safwan Bashir Al-Jarjari, announced the completion of the procedures for signing the Parliament's decision letter, approving the budget schedules, and sending them to the Ministry of Justice/Iraqi and Financial Facts."
Yesterday, Monday, the House of Representatives voted on the schedules of the Federal General Budget Law, No. (13) amended for the year 2024, and its annexes, Schedules (A/B/C/D/E/F).”
Member of the Parliamentary Integrity Committee, Hadi Al-Salami, revealed today, Tuesday, that about 57 trillion Iraqi dinars remain from the 2023 budget, and no one knows where it went.
Al-Salami said, “The 2023 budget amounted to 206 trillion, the actual expenditure was 148 trillion, and the remaining 57 trillion. No one knows where that retained money went.”
He added, "There are 22 trillion in rounds in the 2022 budget as well, and no one knows where it went," noting that "there are problems and irregularities regarding the issue of actual revenues and actual expenses in the budget tables."
He explained, “The House of Representatives made many observations on the budget schedules that were passed without warning.”
Al-Sudani: Iraq has many investment opportunities offered to international companies
Prime Minister Muhammad Shiaa Al-Sudani confirmed, today, Tuesday, that Iraq has many investment opportunities offered to international companies.
Al-Sudani’s media office said in a statement received by {Al-Furat News}, “The latter received the British Ambassador to Iraq, Stephen Hitchen, and during the meeting, they discussed bilateral relations between Iraq and the United Kingdom, and mechanisms for working to strengthen and expand them in various fields, in a way that achieves mutual benefit and interests.” shared between the two countries.
The Prime Minister stressed that "Iraq has many investment opportunities presented to international companies, welcoming the participation of British institutions and companies in various sectors, especially the sectors of energy, industry, agriculture, and other vital sectors."
During the meeting, he also touched on the importance of enhancing stability in the region, and the destabilization of security caused by the aggression in Gaza and the threat of the spread of conflict, reiterating the need for international powers and global organizations to assume their responsibilities in stopping the genocide against our steadfast Palestinian people.
The Central Bank explains the “fiscal control” mechanism contained in the budget
On Tuesday, member of the Board of Directors of the Central Bank of Iraq, Ahmed Barihi, clarified the term financial control contained in the federal budget, as many officials misquoted it during their press statements, which may lead to unintended errors.
Berihi told Al-Maalouma, “The general concept of the term financial control mentioned in the federal budget among public finance specialists is the attempt of the government and the executive authorities to adhere to balance in order to exceed the deficit rate in future budgets and not reduce it to the deficit in the current budget.”
He stated, “Many officials misuse the term in their press statements, which may lead to unintended errors.”
He pointed out, "The government must benefit from the increase in annual revenues, whether oil or other, as well as develop productive projects to enhance the treasury's financial resources to achieve the term."
He continued, "Achieving financial control requires serious monitoring of costs on a permanent basis and follow-up by the regulatory authorities represented by the Financial Control and Integrity Department and the House of Representatives regarding determining project costs."
An economist confirms the possibility of Iraq entering the field of investment in oil derivatives
The economic expert, Safwan Qusay, confirmed on Tuesday the possibility of Iraq entering the field of investing in oil derivatives and delivering its derivatives to various countries of the world and avoiding any fluctuation in global oil prices.
Qusay told Al-Maalouma, “Iraq has the potential to reach self-sufficiency in fuel, especially gasoline, and shift to investing in the management of oil derivatives at the storage level.”
He added, "The shift to the aforementioned investment guarantees Iraq a realized revenue, so that in the event of a decline in global oil prices, Iraq can invest in the available stock of derivatives with the aim of not reflecting price fluctuations on import operations and thus ensuring that the oil products marketing company is not harmed."
He pointed out that "achieving self-sufficiency in fuel and the shift towards investment and export of derivatives requires the development of oil refineries and the establishment of new refineries that guarantee Iraq's shift towards investment and export of derivatives.
Announcing the establishment of the Iraqi-French Business Council on the sidelines of the Iraqi-French Economic Forum
The Department of Foreign Economic Relations in the Ministry of Commerce announced the establishment of the Iraqi-French Business Council on the sidelines of the Iraqi-French Economic Forum late last May.
A statement by the Ministry’s media office said: “The activities of the forum were organized by the Embassy of the Republic of Iraq in Paris in cooperation and coordination with the Commercial Mission in Paris, the French Ministry of Foreign Affairs, and the French Employers Association MEDEF for the period from the twenty-ninth to the thirty-first of last May.”
The statement continued: “The forum was attended by Governmental bodies and the Iraqi private sector, and on the French side, the Minister Delegate for Foreign Trade, Attraction, Francophonie, and French people abroad, in addition to other official figures, with the participation of Iraqi and French companies from the public and private sectors, and a large number of researchers, interested parties, and media professionals.
The statement indicated: “The launch of the work of this economic forum comes within the efforts of the Iraqi government and the Ministry of Commerce to implement the Iraqi-French strategic agreement signed between the two countries last year in order to develop trade and economic relations between the two friendly countries.
The statement stressed:” The Commercial Attaché played a pivotal and prominent role. In coordination with French banks, owners of companies, factories, investors, industrialists, and parties influencing French commercial and economic decisions, by bridging viewpoints to open broader commercial cooperation horizons by inviting them to participate in the forum.
The Prime Minister directs the start of the Eid al-Adha holiday from Sunday, June 16, until the following Thursday
INA Prime Minister Muhammad Shiaa Al-Sudani directed, today, Tuesday, the start of the Eid Al-Adha holiday from Sunday, June 16, until the following Thursday.
The Prime Minister’s Media Office stated in a statement received by the Iraqi News Agency (INA), that “Prime Minister Muhammad Shiaa Al-Sudani directed that the Eid Al-Adha holiday be for official departments, starting from Sunday, June 16, until Thursday, June 20, provided that work resumes.” Official, Sunday, June 23.
The Prime Minister's Media Office concluded by saying, "The Almighty God brought him back to Iraq and our people with goodness and blessings."
Financial inclusion in Iraq: a success story that defies the odds
To address this crisis, the Iraqi Deposit Insurance Company began establishment procedures in 2008 with the aim of protecting depositors’ funds and enhancing their confidence in the banking system, which is vital for achieving sustainable economic development.
The company has achieved remarkable success in its mission, as it has witnessed a significant increase in the number of bank accounts and the size of deposits since its establishment. In 2009, total deposits in Iraqi banks amounted to $8.05 billion, and this number rose to $76.5 billion in 2021. This significant increase is largely due to the company’s efforts to enhance confidence in the banking system and encourage citizens to save.
This significant increase in deposits clearly reflects the effective role played by the company in stimulating the culture of savings and encouraging citizens to deposit their money in banks instead of keeping it at home. These numbers indicate that the Iraqi Deposit Insurance Company is on the right track towards achieving its strategic goals, which are enhancing financial stability and reducing the phenomenon of hoarding, and thus contributing to advancing economic growth in Iraq.
Parliamentary Finance: All revenues are not enough to meet the country’s needs, and the budget prohibited appointment in any capacity
Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani:
Governorate allocations were supported by more than 12 trillion dinars, carried over from food security and the 2023 budget.
Oil and non-oil revenues are insufficient to meet the country’s need.
Calculating the price of a barrel of oil at $70 in the budget.
The government has more than 100 hospitals in all governorates and is continuing to expand. Its completion of
the budget did not indicate prohibiting tenure, but it prohibited appointment as a salary, contract, or staff.
The government is very supportive of farmers.
We will follow the work of the Ministry of Electricity carefully.
There is an increase in non-oil revenues.
Al-Rafidain announces the implementation of the comprehensive banking system at the White Palace branch in Baghdad
Al-Rafidain Bank announced, today, Tuesday, “the implementation of the comprehensive banking system in the White Palace branch in Baghdad, thus joining the branches in which the comprehensive system was activated in Baghdad, the governorates, and the branches of the border crossings.”
The bank stated in a statement received by Al-Mutala’ Agency that, “In line with the government program to move from paper to electronic transactions to provide the best services to citizens, the comprehensive banking system was implemented in the White Palace branch in Baghdad, thus joining the branches in which the comprehensive system was activated in Baghdad and the provinces.” The number of “28” branches is in addition to the branches of the border crossings (Zarbatieh - Safwan - Arar - Trebil), in an important step to strengthen the banking system, achieve its requirements, abandon paper work, and move completely to electronic systems.
He added, “The plan for digital transformation and adoption of the comprehensive banking system is proceeding according to the set timings to include all bank branches in implementing the system, especially since one of the priorities and adoptions of the government program is electronic transformation in financial transactions, reducing episodes of red tape for citizens, reducing time, simplifying procedures, removing obstacles, and intensifying efforts to raise the level of... Services provided to customers and completion of their transactions.
Iraqi Business Council: The budget schedules are flexible and include sacred paragraphs
The head of the Iraqi National Business Council, Dawud Abd Ziar, considered the budget schedules “flexible and included sacred paragraphs.”
Abdel Zayer said, during his hosting of the program {Free Speech} broadcast on Al-Furat satellite channel this evening, that: “
There are no winners and losers in the 2024 budget under the law to meet the needs of other ministries.”
- The schedules were an addition that was approved with a slight difference from last year and is considered a deficit. At the present time, but these numbers can be changed with the rise in oil prices.
- The budget law gave the government and ministries authority to spend to implement projects, and also granted the government powers to make transfers according to the actual need and importance of the projects.
- There is a sanctity to some paragraphs in the budget, which are {social care and the ration card The farmers’ amounts have priority in spending, in addition to salaries and the operating budget.
The 2024 budget is ambitious, and Prime Minister Muhammad Shia al-Sudani wants to make a qualitative economic shift in Iraq and has foresight regarding the size of matters.
There are huge obligations on the government, and any allocated amounts go to major projects The large Al-Faw port and the road to development.
- The industry in Iraq is conflicted and cannot be relied upon, and the government is serious about working to rehabilitate local companies.
- It is assumed that industrial companies will be transferred to the mixed sector and transformed into joint-stock companies that depend on self-financing and are managed away from the control of the ministry, as the management of the companies is independent. By shareholders, it contributes to the revival of the industrial sector.
The delay in approving the budget was due to the procedures of the Ministry of Finance, and the responsibility for the success and failure of projects lies between the provincial councils and the relevant ministries.
The ministries were flabby in previous governments. But in the Sudanese government, there is careful monitoring of all budget details in the ministries and governorates to solve all the problems facing both sides.
The government most open to the private sector is the Sudanese government. But we have not yet reached the level of ambition, and the government may sponsor the private sector to obtain external loans to implement strategic projects.
The effects of operational spending go to projects to relieve bottlenecks and infrastructure, and the budget law includes the possibility of borrowing from government and foreign banks to cover the deficit.
-The government’s financial balance decreased from 23 trillion dinars to only one trillion dinars as a result of spending on service projects. But in return, we have revenues amounting to more than 9 trillion dinars per month.
-The government seeks to amplify local revenues during the coming year to fill the deficit by demonstrating a major strategic project.
There are smuggling operations currently taking place of the region’s oil without delivering it to Baghdad, knowing that the smuggled oil, if delivered to the federal government, will generate more revenue for Kurdistan.
Angry demonstrators storm an American company in Baghdad
On Tuesday, angry demonstrators stormed the building of an American company in Baghdad.
A security source told Mawazine News, "Angry demonstrators stormed the building of the American company Procter & Gamble in the Uwaireej area, south of Baghdad."
He added, "The security services were on alert towards the Uwairaj area in Baghdad."
Attacking two restaurants in Baghdad
On Monday evening, about thirty people attacked two restaurants, including the American KFC, in Baghdad, after about a week that witnessed similar attacks.
The media said that about 30 people attacked the KFC and Chili House restaurants on Palestine Street, and the security forces fired into the air to disperse them. At least two people were arrested, and the security forces deployed in areas containing American institutions in Baghdad to avoid a repetition of what happened.
The media reported that no human damage was recorded, but only material damage to the two restaurants, while footage broadcast by local media showed men wearing masks smashing furniture and glass in a branch of the KFC restaurant.
Last Thursday, sound bombs were thrown in front of a Caterpillar Heavy Equipment agent and a language institute in Baghdad. Also on May 26, a hand-made bomb was thrown at a KFC branch, causing minor material damage. The next day, masked men stormed a branch. They opened another restaurant and smashed its windows. Following the two attacks, security forces announced the arrest of suspects.
The US Ambassador to Iraq, Alina Romanowski, on Thursday condemned the attacks, calling on "the Iraqi government to conduct a comprehensive investigation, bring those responsible for the attacks to justice, and prevent any future attacks."
Last week, the leader of the Sadrist movement, Muqtada al-Sadr, once again called for the closure of the US embassy in Baghdad “through established diplomatic methods without shedding blood,” following an Israeli bombing that killed dozens of people in a camp for displaced people in Rafah in the southern Gaza Strip.
The war broke out in Gaza after an unprecedented attack carried out by Hamas on Israeli territory on October 7, killing more than 1,189 people, most of them civilians, according to a census based on official Israeli data.
Israel vowed to destroy Hamas and launched an air and ground military campaign that killed at least 36,479 people, most of them civilians, according to the Ministry of Health in the Hamas-run Strip.
Today, Tuesday, Prime Minister Muhammad Shiaa Al-Sudani chaired the twenty-third regular session of the Council of Ministers, during which the most important files and topics related to the progress of implementation of the government program were discussed, as well as the topics on the agenda were discussed, and the necessary decisions were taken regarding them.
At the beginning of the session, the Prime Minister expressed his appreciation for the House of Representatives’ step by approving the budget schedules, submitted pursuant to Law No. (13 of 2023), the Federal General Budget Law of the Republic of Iraq for the fiscal years (2023, 2024, 2025), appreciating the great effort made by All political forces, the Presidency of Parliament, and the Finance Committee considered it a responsible position that would complement what the government and relevant ministries had begun, to accommodate financial capacity and various obligations.
Al-Sudani directed the Ministries of Planning and Finance to take into account procedural aspects, as the government places great importance on launching projects without obstacles, noting that the budget amounting to (211) trillion dinars requires proper procedures and care in investing financial allocations, in a way that preserves public money and blocks corruption attempts.
Al-Sudani reiterated the need for all regulatory bodies to cooperate to set an implementation path for projects, especially since the citizen is waiting for improvement in the service, livelihood and development reality. The tables also include positives that flow into the path of economic reform, supporting the private sector and enabling it to contribute strongly to creating job opportunities and providing services.
With the advent of Eid Al-Adha approaching, the Prime Minister directed that the official departments’ holiday be from Sunday, June 16, until Thursday, June 20, with official work resuming on Sunday, June 23.
In implementation of the directive of the Prime Minister during his presidency of the second meeting of the Supreme Committee for Coordination between the Council of Ministers and the Federations and Syndicates to periodically host the heads of the federations and unions in the Council of Ministers, the Iraqi Bar Association hosted Ms. Ahlam Al-Lami, who presented a paper containing several proposals related to improving the conditions of lawyers and facilitating their reviews in... Ministries and other government institutions, and amending some laws that support and facilitate the work of lawyers.
The Prime Minister praised the role of lawyers in building the state and ensuring rights, stressing the government’s work to provide all requirements that help in the success of this mission, in a way that contributes to achieving justice and ensuring legal and constitutional rights, and directed all ministries to cooperate with the Bar Association.
His Excellency also directed the formation of a committee from the secretariat of the Supreme Committee for Trade Unions and Federations, a representative of the Legal Department in the General Secretariat of the Council of Ministers, and the government representative in the House of Representatives to study what was stated in the paper submitted by the Bar Association.
In order to support investment projects and the work of the private sector; The Council of Ministers approved what was stated in the letter of the Council of Advisors dated May 29, 2024, as follows:
●Land ownership for industrial projects
The Ministry of Finance/State Real Estate Department shall sell lands on which industrial projects are built to the project owner, who has obtained a license to complete establishment under the Industrial Investment Law for the Private and Mixed Sectors No. (20 of 1998) at the time of issuance of this decision, as an exception to public bidding, in accordance with the following conditions:
1. The industrial projects included in this decision must have obtained a license to complete establishment from the General Directorate of Industrial Development before the issuance of this decision, and that a minimum of 3 years have passed since the industrial project was granted a license to complete establishment.
2. The industrial projects included in this decision must be outside the basic design of the cities.
3. The project owner must submit a release from the General Tax Authority or one of its branches, and a clear position from the Social Security Department for workers in the project.
4. The provisions of this decision include all lands owned by the state and lands burdened with alienation rights, on which those with the right to alienate have established an industrial project.
5. The Ministry of Agriculture - Agricultural Lands Department is responsible for raising the hand of agricultural reform, based on a request from the State Real Estate Department, with regard to the lands covered by this decision, in accordance with its applicable legislation and regulations, and the Ministry of Agriculture may take all necessary measures in the event that the beneficiary violates the provisions of this decision. In accordance with applicable legislation.
6. The Ministry of Finance - State Real Estate Department must take the following:
A. Estimating the sale price for the purposes of this decision in accordance with the provisions of the Law on the Sale and Rent of State Funds No. (21) of 2013 as amended and its instructions.
B. The collection of the sale allowance for lands burdened with alienation rights (class correction in cash) shall be in accordance with the percentages specified in the Law for the Unification of State Land Classes No. (53) of 1976, and in accordance with the provisions of the Real Estate Registration Law No. (43) of 1971, as amended, taking into account the provisions of Clause (5) of this law. the decision.
C. Coordination with the Ministry of Justice - Real Estate Registration Department, to take the necessary measures to change the type and type of property covered by the provisions of this decision, in accordance with the legislation in force.
7. All real estate registration directorates and their supervisors shall place a non-disposal sign on the real estate records covered by the provisions of this decision, indicating that it is not permissible to dispose of them for purposes other than industrial use.
8. The procedures set forth in accordance with this decision apply to requests for expansion and development of industrial projects covered by its provisions, starting from the date of granting approval to complete the expansion and development.
9. Cabinet Resolution No. (227) of 2020 is cancelled.
Supporting the private industrial sector
1- Obligating the Ministry of Oil to do the following:
a. Not cutting off the monthly fuel quota for all industrial projects, for any reason.
B. Not imposing a month of maintenance on industrial projects, and not withholding the monthly fuel ration for this reason.
C. Providing all industrial projects with their actual shares of petroleum derivatives confirmed according to the need assessment list, prepared by the General Directorate of Industrial Development.
Dr. Industrial projects' monthly quotas of unprocessed petroleum derivatives are rolled over to the following month.
e. Issuing an annual fuel card for each separate industrial project for the purposes of supplying these projects with petroleum derivatives, according to the annual need estimate prepared by the General Directorate of Industrial Development, after completing all requirements.
And the. Providing industrial projects with gas oil, at the approved price at gas stations (400) dinars per liter, and not at the commercial price according to the need estimate prepared by a joint committee of the Ministry of Oil and the General Directorate of Industrial Development; To operate electrical power generators for each project.
2- Customs duties are collected for raw materials, production lines, and production requirements involved in local industries as follows:
First - The customs duties imposed on raw materials used in all local industries are (0.05%), and the General Authority of Customs is responsible for implementing this according to the following:
A - The General Directorate of Industrial Development, the National Investment Authority, the investment authorities in the governorates, and the Iraqi Federation of Industries (each according to the entity granting the industrial project license) estimate the annual need for raw materials for industrial projects according to certified lists for each separate project, which are sent to the General Authority for Customs, provided that The project has an establishment completion license or an effective investment license.
B - The General Authority of Customs collects the aforementioned customs duties, regardless of whether raw materials arrive with or without containers, and from all border crossings, as an exception to Cabinet Resolution No. (23672) of 2023.
Second - Customs duties for production lines and production requirements are (0.05%), for industrial projects under establishment or expansion of fully established industrial projects, based on an endorsement issued by the donor agencies to approve the industrial project, and sent to the General Authority of Customs.
Third: The General Directorate of Industrial Development, the National Investment Authority, the investment authorities in the governorates, and the Iraqi Federation of Industries are responsible for the validity and integrity of the procedures and information submitted to the General Authority for Customs.
3- Obligating all government banks to do the following:
a. Lending industrial projects for the purpose of purchasing (raw materials, production lines, or production requirements), or constructing new or additional buildings for projects that have received a license under establishment, or have been completed, with a guarantee of the assets of the project itself, provided that a joint committee is formed from the General Directorate of Industrial Development and the Federation Industries, with the possibility of seeking the assistance of experts accredited by the Iraqi courts to undertake the task of evaluating the guarantees provided.
B. A specialized committee shall be formed, headed by a body of advisors and with the membership of representatives from the relevant departments. To prepare lending mechanisms and controls that determine reservation and redemption rates for the guarantees provided, within a period of two months from the date of issuance of this decision.
C. In the event that borrowers fail to pay their obligations related to loans for industrial projects, and the guarantees provided by them cannot be liquidated, the management of the lending bank will not bear any legal consequences, if granting the loan is in accordance with the conditions stipulated in accordance with this decision.
4- The Ministry of Justice/Real Estate Registration Department is responsible for isolating and dividing agricultural lands on which existing industrial projects are built and that have obtained an establishment license from the General Directorate of Industrial Development or the Investment Authority, with separate real estate bonds, regardless of their areas.
5- Obligating the Ministries of Finance, Construction, Housing, Municipalities, Public Works, and land-owning entities to collect rental fees for all industrial projects established before and after the entry into force of the Industrial Investment Law for the Private and Mixed Sectors No. 20 of 1998, in accordance with the decision of the Economic Affairs Committee dated June 9, 2011.
6- The General Directorate of Industrial Development, in coordination with the National Data Center Department in the General Secretariat of the Council of Ministers, shall establish a unified electronic window within a maximum period of two working months from the date of the decision. In order to complete the procedures for establishing industrial projects; With the aim of facilitating procedures and shortening the period for granting permission to complete establishment within 15 working days, a maximum for projects that meet all requirements.
7- Obliging the Ministry of Finance to issue one liability release annually to taxpayers (individuals or companies that own industrial projects) and for each industrial project, a separate project, addressed to all government institutions, and obligating ministries and entities not affiliated with a ministry and all governorates to approve it during the fiscal year that includes its effectiveness, and not Claim a clearance addressed to a specific department.
8- Obligating the Central Agency for Standardization and Quality Control, in coordination with the Directorate for Combating Organized Crime, to follow up on all factories that are not officially licensed and take legal measures against their owners and shop owners who trade in the products of those factories and confiscate the produced materials.
9- Obligating the Ministry of Electricity to do the following:
a. Collecting electricity supply fees for industrial projects approved by the General Directorate of Industrial Development, the National Investment Authority, the investment authorities in the governorates, and the Iraqi Federation of Industries, according to the industrial tariff, not the commercial tariff.
B. Take the necessary measures to isolate industrial areas’ feeders from residential areas within a maximum of one year, and equip them with electrical power for no less than 8 hours a day during daylight hours.
10- Obliging all municipal departments, districts and districts to grant (initial written approval) for the establishment of constructions for industrial projects that have obtained an industrial project license under establishment, issued by the Directorate of Industrial Development or an investment license from investment authorities in all their branches, built on agricultural lands, the property is pure, or Burdened with the right to dispose of, the project owner submits a written pledge to the aforementioned departments to complete all the fundamental requirements for issuing a building permit, within a maximum period of one year from the date of issuing the initial approval. Otherwise, he will bear the legal consequences and remove any construction that does not meet the required conditions.
11- The security forces, in all operations sectors, are responsible for facilitating the entry of construction materials and all other requirements for the purpose of constructing the required buildings, for the establishment of industrial projects that have obtained an establishment license for an industrial project under establishment, issued by the Ministry of Industry/General Directorate of Industrial Development, or an investment license from Investment bodies with all their branches, or licensed by the Federation of Iraqi Industries, and initial approval from municipal departments, districts, and districts, immediately, without requesting any additional approvals.
12- Obligating all ministries, entities not affiliated with a ministry, and all governorates to implement Article 30 Second of Federal Budget Law No. 13 of 2023, and to cover all their own needs and project implementation requirements, using the tender method for local products, and in the event that three local producers are not available for the required materials, an exception will be made. This is part of Government Contracts Instructions No. (2) of 2014, and the regulatory authorities must follow up on this.
13- Suspending all previously issued circulars and controls related to restricting the transport of iron waste (scrap) and allowing the transport of these materials without any restrictions between governorates and within a single governorate and region.
14- Cabinet Resolution No. (24150) of 2024 is cancelled.
During the session, the recommendation of the Ministerial Council for the Economy (24150 Q) was approved as follows:
1. The price of fuel oil will be the same as the price for preparing it for oxidized asphalt plants, which is (35%) of the price of the global bulletin in Dubai, provided that the price of one ton does not exceed (250 thousand) dinars per ton.
2. The price of the white oil product shall be 50% of the global bulletin price.
3. The price of liquid gas (LPG) will be (415 thousand dinars) per ton, prepared from the Halfaya Gas Plant, and the buyer will bear the transportation costs.
4. The prices indicated in paragraphs (1, 2 and 3) mentioned above are for the purposes of selling the industrial city’s products for local consumption, with priority given to meeting the Ministry of Oil’s need for industrial and petrochemical products.
In the field of energy, the recommendation of the Ministerial Council for Energy (24040 T) for the year 2024 was approved as follows, according to financial powers:
First: Purchasing energy from the Silver Crescent Company’s investment station with a capacity of (250) megawatts, and from the simple cycle, by the take and pay method and with the energy purchase tariff:
a. Energy purchase tariff on gas: $24.94. MW. hour.
B. Energy purchase tariff on heavy fuel: $32.37. MW. hour.
C. Combined cycle energy purchase tariff: $36.81. MW. hour), provided that the contract period is (20) years.
Second: The Ministry of Finance issued a payment guarantee for energy purchase dues from the Ministry of Electricity for the duration of the energy purchase contract of (20) years, from the competent committee.
The Council excluded AMEA Power Company from Cabinet Resolution (245 of 2019) amended by Resolution (23374 of 2023), and authorized the Ministry of Electricity to extend an invitation (the only offer) to the aforementioned company. In order to submit its offer to establish a solar power station with a capacity of (500 megawatts) with the option of adding batteries, so that the Ministry of Electricity can proceed with the procedures in accordance with the investment law.
An increase in the cost of the contract (EPCM) BOC-1540 concluded with (KBR) regarding the production and development of the Majnoon field/Basra Oil Company was approved, according to the authority set forth in Cabinet Resolution (23713 of 2023).
It was also approved to increase the cost of the project (rehabilitation of gas generation stations in the central region).
The Council also agreed to exclude the Northern Refineries Company from Council of Ministers Resolution No. (23672 of 2023) so that it can bring in materials present at Baghdad International Airport. Due to the urgent need for it in operating the North Refinery, the aforementioned company pledges to provide the General Authority of Customs with original documents from the company that supplied the materials.
The Council took its decision to approve the issuance of the first amendment to the Reconstruction Fund System for the Poorest Governorates (5 of 2023), based on the provisions of the Constitution, and to facilitate the implementation of the provisions of Article (55) of Budget Law No. (13 of 2023), taking into account the observations of the Legal Department in General Secretariat for the Council of Ministers.
The Council approved the draft civil aviation law, which was reviewed by the State Council and referred to the House of Representatives, based on the provisions of the Constitution, taking into account the observations of the Legal Department in the General Secretariat of the Council of Ministers.
In the field of completing lagging service projects, the Council decided the following:
1- Deleting the two projects (Haidariya sewers and Al-Muqdadiya sewers), which are included in the investment budget schedules of the Ministry of Construction and Housing/General Directorate of Sewerage, and re-listing them at the new cost, in accordance with the listing requirements submitted to the Ministry of Planning.
2- Including all infrastructure projects, for which the Ministry of Planning has not been approached by the Ministry of Construction, Housing, Municipalities and Public Works, and providing the Ministry of Planning with the listing requirements that may require increasing their total cost with one of the proposals, which are approved by the Council of Ministers.
In the same vein, the component (electricity supply to the Kut Water Project - Wasit) was created within the components of the (Kut Water - Wasit Project) fixed in the investment budget tables of the Ministry of Construction, Housing, Municipalities and Public Works/General Directorate of Water for the year 2024, and the total cost of the project was increased.
The two components (the cultural city, the main squares, and the platform in the tourist city of Ur) and (the service buildings, the main streets, and the parks in the tourist city of Ur/Dhi Qar Governorate) were also created within the components of the Archaeological City of Ur project, which is included in the investment budget tables of the Dhi Qar Governorate Reconstruction Fund for the year/ 2024, and increasing the total cost of the project, and the Ministry of Planning is responsible for transferring the required amount from one of the sections of the investment budget to the Dhi Qar Reconstruction Fund.
Within the framework of regulating external cooperation in combating corruption, the Council approved authorizing the Chairman of the Federal Integrity Commission, as an agency, to sign the (Mecca Al-Mukarramah) Agreement for member states of the Organization of Islamic Cooperation, to cooperate in the field of enforcing anti-corruption laws, based on the provisions of the Constitution, as well as preparing The Ministry of Foreign Affairs provides the necessary authorization document on behalf of the Government of the Republic of Iraq to the Chairman of the Federal Integrity Commission, acting as an agent, in accordance with the approved contexts.
In support of the government for cultural and artistic activity, it was approved to allocate (5.170) billion dinars to the Ministry of Culture, for an initiative to support cinema, drama, theatre, plastic arts, literature and books.
In the same context, the Council agreed to allocate (5) billion dinars to the Ministry of Culture/Department of Cinema and Theater; To complete the reconstruction of the remaining floors in the Al-Rashid Theater building, re-work the building and remove the sandwich panel material in accordance with the recommendations of the Ministry of Interior. Based on the provisions of the Federal General Budget Law (13 of 2023).
The Council issued its decision to amend the name of the company mentioned in Paragraph (5) of Cabinet Resolution (24072 of 2024) to be (Ora Developers Horizon Limited), and to exclude it from the registration conditions set forth in the amended Foreign Company Branches Law (2 of 2017).
TODAY JUNE 5 24
UN Identifies Iraq Investment Opportunities
The United Nations Development Programme (UNDP) has issued a new 49-page report on investment opportunities aligned with Iraq's Sustainable Development Goals (SDGs) in target markets and sectors.
The report identifies investment opportunities in the following areas:
- Food Processing
- Mid-tech Greenhouses
- Specialty Dairy Products
- EdTech Platforms
- Low-fee Private Schools
- Education Infrastructure
- Utility-scale Solar Farms
- Solar-based Green Energy Solutions
- Railroad Infrastructure
- Pharmaceuticals Production
- Social Housing
- Water Resource Management Solutions
- Flaring Solutions
- Early Childhood Development
- Advanced Healthcare Services
In a statement announcing the report, the UNDP said:
"The collaborative effort between the Republic of Iraq's Ministry of Planning (MoP), the United Nations Development Programme (UNDP) in Iraq, and UNDP Istanbul International Center for Private Sector in Development (ICPSD) has led to the development of "Iraq's SDG Investor Map".
"This flagship product marks the culmination of an in-depth report on investment opportunities and conditions aligned with the Sustainable Development Goals (SDGs) in target markets and sectors.
"This comprehensive map presents profitable investment opportunities that meet sustainable development needs and national policy priorities. It leverages the development priorities of the previous National Development Plan and aims to inform the upcoming new National Development Plan covering 2024-2028.
"The Iraq SDG Investor Map adopts a holistic approach to sustainable investments in the country, encompassing climate resilience, social cohesion, economic diversification, reconstruction, and the revitalization of the manufacturing sector. It employs an SDG-sensitive investor lens to encompass all regions of the Republic of Iraq."
Click here to download the full report in English.
Al-Abadi warns the parties: The Iraqis “read the erased” and the Sudanese told us everything
A scathing comment about the budget dispute
Today, Wednesday, the head of the Victory Coalition, Haider al-Abadi, considered the conflict over the budget schedules to be “political and the citizen has no interest in it,” pointing to influential blocs in the provinces that want additional allocations to sign new contracts that “compensate” for the old contracts, but the Iraqis “accept what is erased,” as he put it. Especially since Prime Minister Mohamed Al-Sudani “clarified everything” during a meeting attended by all parties.
Al-Abadi in an interview with journalist Ahmed Al-Tayeb:
It is assumed that members of the provincial councils focus on public service, because people have a lack of confidence in the provincial councils. We must strengthen their confidence, and they must look for the interests of the people and not the interests of parties and entities, nor the interests of individuals, and I am in favor of allocating sufficient funds to the provinces.
Some of the influential blocs in some governorates want new allocations in order to contract themselves. The group did not take a share in the old contracts. This is not in the interest of a citizen, and this is shameful. My words to the brothers in the political blocs are shameful. The people are filled with milk, and the Iraqis are reading the erased.
Some accuse the Sudanese Prime Minister of having projects, and the man defends himself and says that he gives them to the ministries, and presented a table at the meeting stating that 38 trillion dinars in the ministries are for the benefit of the governorates.
(Regarding contracts and appointments) The Sudanese defends himself, and says that I did not do this on my own, and I did not add anything, but rather they are decisions and legislation from the House of Representatives, all of which must be implemented, and that is why he called on the House of Representatives not to expand. Because of their expansion, they forced the government to implement this. Al-Sudani said, “In the end, it is as if I did not implement the law, as if I did not want the interest of the people. This is how they accuse me.” He said, “They put me in an atmosphere that I cannot escape from because it is a legal responsibility.”
Unfortunately, there is a narrow-mindedness and an attempt to prey on the citizen in order to get his vote. They give him an appointment in order to get his vote, and they have nothing to do with his interest and the interest of the country, and they know that this will create a disaster.
(The conflict over budget schedules) is a political conflict, and the region did not receive (money) (but it received $2 trillion for its oil licensing rounds for the first time), according to what I understood from the Prime Minister, and “if the companies do not export oil and SOMO does not receive it in... “Jihan,” he will not pay (to Kurdistan), and this is only in the budget, and something for something. That is, this is in exchange for exporting oil, and if it is not issued, this amount will not be paid, and this is in light of the Federal Court’s decision.
The comparison is incorrect (with the region), but this is part of the political struggle. He wants to show that he is defending the truth! I was surprised that some of them put a number from themselves and say, “Add this number.” On what basis do you determine the number? A study must be conducted first to establish numbers.
(The State Administration Coalition is accused of obstructing the selection of a Speaker of Parliament. Is this true?)
Al-Abadi: I accuse various parties of wanting someone subordinate to them, and others want Parliament to remain weak under control, as we have gone through several previous collapses, due to political rivalry between Parliament and the government, so they want Parliament to remain weak in order to dominate it. He has interests in certain legislation or certain matters. And certain electoral interests. When Parliament is in control, it may win 10-15 additional seats, all of which are calculations, and do not take into consideration the interest of the country.
An Iraqi economist criticizes the 2024 budget: operational par excellence
On Thursday, economic expert Nabil Al-Marsoumi criticized the federal budget for the year 2024, which is the largest in the history of Iraq, describing it as operational par excellence, considering that it is not part of the development plan.
Al-Marsoumi told Shafaq News Agency, “The budget has abundant funds, amounting to 211 trillion Iraqi dinars, and this is a very large amount, but as is the case in previous Iraqi budgets, it was allocated to social care, salaries, and other expenses, and therefore it is an operational budget that does not change the quality and structure of the Iraqi economy.” .
He added, "The budget is dependent on oil and the extent of the backwardness is large in the sectors of industrial and agricultural production and operational services. The budget was not part of the development plan, as there is supposed to be a development plan in the country every four or five years."
Al-Marsoumi continued, "There is no strategic tool that distributes oil revenues to the people and to the governorates, as the financial allocations to the governorates range between 7-20% of the budget."
He pointed out that "operational spending took up 74% of the approved budget, with about 95% on oil export imports, while investment spending amounted to 55 trillion dinars, including 1,321 projects, 470 of which were lagging in implementation due to the lack of financial allocations. The government is also completing implementation." Major projects related to infrastructure and other commercial and industrial projects that have important future economic roles, such as Al-Faw Port and the development road.”
Al-Sudani renews the government’s support for the work of the provincial councils
Prime Minister Muhammad Shiaa Al-Sudani stressed on Thursday the importance of moving to practical, practical steps in the work of the governorate councils and executive bodies in the governorates.
A statement from his media office said that Al-Sudani opened today the first forum of governorate councils and offices, with the Integrity Commission and the Supreme Authority for Coordination between Governorates, held under the slogan (Integration of oversight roles is a basic pillar of performance evaluation for better services and sustainable development), with the participation of oversight bodies and relevant parliamentary committees, Governors and heads of provincial councils, as well as the body of advisors in the Prime Minister’s Office, the General Secretariat of the Council of Ministers and the Financial Supervision Bureau, and a number of human rights federations and unions and relevant local and international organizations.
According to the statement, the forum aims to activate the supervisory role of the governorate councils in line with the government’s priorities and the tasks of the Integrity Commission in fighting corruption. It also aims to coordinate between the Supreme Authority for Coordination between Governorates and the Integrity Commission, in order to activate the supervisory roles of local governments.
In his speech, Al-Sudani pointed out the importance of moving to realistic practical steps on the ground in the work of the governorate councils and the executive bodies in the governorates, in order to meet the requirements of our people who are waiting for a tangible achievement that the numbers and standards speak of, indicating that the structure of local governments will be completed after the success of the governorate council elections, and the completion of The legal framework for its work requires regulating the disbursement of public funds to preserve people’s interests, continuing to activate supervisory roles, fighting corruption, and consolidating the economic reform steps that the government has initiated in accordance with its work program.
Al-Sudani explained that when the government prioritized fighting corruption, it sensed the citizen’s desire to strengthen his confidence and faith in the state, calling for this forum to be held periodically in order to conduct a review and address the challenges, and he will receive from the government all support and all the necessary effort to overcome obstacles and difficulties.
In his speech during the opening of the forum, the Prime Minister stressed the importance of supporting the supervisory, legislative and policy-making roles of the governorate councils, to ensure an environment that limits corruption, in addition to emphasizing the implementation of the priorities of the Supreme Authority for Coordination between the governorates, in supporting digital transformation, improving services, and monitoring service institutions, And continuous evaluation of performance, according to the statement.
Al-Sudani said that being precise in work and following instructions does not mean hesitation in making the right decision, and applying the law firmly against the corrupt does not mean injustice, indicating that the scourge of corruption is no different from terrorism in that it must be fought, and terrorism no longer represents a danger to the state, while corruption constitutes a rift in The credibility of the work of state agencies.
He pointed out that fighting corruption is not impossible, by adopting practical steps based on the law, successful tools and experience in decision-making, in addition to that disrupting business is a form of corruption and wasting money, and there are many projects that are stalled under the pretext of auditing, and councils must be supported within the framework of implementing the National Integrity Strategy. And combating corruption, as well as proactive action against corruption.
Al-Sudani stressed that preventing corruption represents a source of strength that adds to the citizen’s confidence in government agencies and their support for them, as they provide service and apply the law correctly. It enhances the work of the councils, and through it, our people will measure the seriousness of those who stand up for public service and their good performance.
He continued that responding to the requirements of the effective Financial Supervision Bureau law, the Integrity and Illegal Gain Commission law, the requirements for disclosing financial liabilities, and other laws will facilitate the task of combating corruption, calling for the reports of regulatory authorities to be the standard in evaluating responsibility and performance, and in nominating officials for tasks. , or remove them.
PM al-Sudani advised by Iranian officials on election strategy: sources
Iraqi Prime Minister Mohammed Shia al-Sudani has received recommendations from Iranian officials regarding his participation in the upcoming parliamentary elections, two political sources told Shafaq News on Friday.
The sources revealed that the advice urged al-Sudani to run in the next parliamentary elections under the Coordination Framework banner, while "maintaining unified decision-making post-election".
This "recommendation" comes as some political factions sought to ally with al-Sudani outside the Coordination Framework in exchange for supporting his bid for a second term as prime minister.
Al-Sudani's response to these recommendations remains unknown, according to the source.
Al-Sudani became prime minister in October 2022, supported by the Coordination Framework and a coalition of Kurdish and Sunni forces. His administration has been marked by efforts to balance Iraq's foreign relations with both Iran and the United States, two countries wielding substantial influence in Iraq.
Despite his premiership being backed by the Shiite Coordination Framework, a consortium of mainly Iran-backed Shiite paramilitary groups, he has had disagreements with former Prime Minister Nouri al-Maliki, a key figure in the coalition, due to differing political and administrative perspectives.
In contrast, al-Sudani has received support from Asa'ib Ahl al-Haq, a powerful armed group in Iraq.
A government official noted that this support reflects the power dynamics in Iraq’s political scene, where al-Sudani relies on various factions to stabilize his government and tackle political and security challenges, without direct interference in policy decisions.
In numbers: the decline in the value of the reserves of the Central Bank of Iraq
Economic researcher Manar Al-Obaidi revealed today, Friday (June 7, 2024), a decline in the value of the Central Bank of Iraq’s total foreign reserves by 2.4%.
Al-Obaidi said in a statement, “The official reserves of the Central Bank of Iraq declined in the fifth month of the current year compared to the end of 2023 by 2.4%, so that the value of the official reserves decreased from 147 trillion dinars in 2023 to reach 143 trillion at the end of the fifth month of the current year.”
He pointed out that "the Central Bank's gold reserves increased by 16% compared to 2023, bringing the value of the gold reserves to 14.3 trillion dinars, up from 2023, when the value of the gold reserves at the end of last year was 12.3 trillion dinars."
Al-Obaidi added, "As for the investment reserve, it decreased by 4.68% compared to the end of 2023, and its value this year reached 126.4 trillion dinars, after it was at the end of last year at a value of 132.6 trillion dinars."
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