Securing salaries is linked to approving the borrowing law, the Ministry of Finance says
Shafaq News / The Ministry of Finance announced on Friday that securing funds for the salaries and social care is linked to the approval of the borrowing law in the Parliament.
The ministry confirmed, in a statement received by Shafaq News agency, that it "works diligently to make sure the government precisely fulfills its obligations. The salaries of state employees, retirees, and social welfare are on the top of these obligations".
"It is no secret to the Iraqi public opinion that the ministry is making these efforts under exceptional circumstances and a financial crisis beyond the control of the government. This affected the financial Liquidity", the ministry continued, "to address this lack of financial liquidity, the Iraqi government sought to obtain parliamentary legislation that would enable it to borrow internally and externally. The funds obtained through internal borrowing, amounting to 15 trillion Iraqi dinars, were used by the end of last month to finance salaries and meet other basic expenses. International loans, on the other hand, are used only to finance development projects".
"The ministry is currently preparing a detailed road map for financing basic expenditures for the remaining three months of the current year. We will submit it soon to the parliament. This plan will include increasing the ministry's capacity for internal borrowing, and once approved, it will enable us to start securing salaries".
The Ministry of Finance attributed its approach to borrowing to "structural weaknesses in public finances, which affect revenues and expenditures and can only be corrected by major reforms".
"The ministry is preparing for the 2021 budget draft in a manner that addresses the accumulated financial and economic challenges", noting, "the circumstances the country is currently going through highlights the urgent need for political and societal forces to come together and work together to achieve security and stability".
