An Economist for : The 2020 budget will include new debts on Iraq .. And the Kurdistan region is the cause

BAGHDAD Economic expert Malath al-Amin warned of the emergence of new debts in the federal budget for 2020, as a result of the failure of the Kurdistan Region to pay the amounts due to the export of oil and revenues of border ports and customs, which constitutes a constitutional violation of the General Budget Law.

Al-Amin said in a statement to the National Iraqi News Agency (NINA) that “the deficit the public budget suffered, in an important part of it, is due to the non-payment of the Kurdistan Region due to the export of oil and revenues of border ports and customs, which constitutes a constitutional violation of the General Budget Law, explaining that this has made the government is forced to borrow from both internal and external parties to pay for the budgeted projects, including operational and service projects.

“The federal government inherited burdens and debts from previous governments, in addition to the expenses incurred during the war against terrorism, the reconstruction of destroyed cities, the shelter of more than three million displaced people, the useless plans, the waste of money and the lack of accountability for corrupt people,” he said. The World Bank and the International Monetary Fund, which should pay interest that may be doubled in the event of late payment, explaining that one of the most prominent areas of budget fatigue is the failure of the Kurdistan region to pay for the export of oil for more than seven years, prompting previous governments to measures to punish it by deducting these amounts from the share of the salaries of employees of the region has continued to work until 2019.

“In the event that the region continues to not pay the amounts due to it constitutionally, the budget next year will include an additional deficit and may have to the government to borrow again to overcome the deficit.

The Parliamentary Finance Committee, announced that the 2020 budget will contain many tables completely different from all budgets since 2003, noting that the Financial Management Act has become a control tool on the public budget.

Source: National Iraqi News Agency