PM Advisor reveals the percentage of budget support for the prices of fuel, electricity and services

INA-  Baghdad

The financial adviser to the Prime Minister Modhir Muhammad Saleh, confirmed on Sunday, that Iraq is currently one of the countries with moderate prices compared to the countries of the world, according to data from the International Monetary Fund, while revealing the percentage of support in the budget.
 
Saleh told the Iraqi News Agency (INA): "The support in the federal budget, which is approximately 13% of GDP, will remain the important controlling factor assumed by fiscal policy in combating inflationary activities resulting from government spending, which constitutes about 50% of the country's GDP as well."

He added, "The support is mainly represented by the stability of the prices of already subsidized fuel, electricity and all other basic government services, in addition to the important and fundamental role that monetary policy will play in controlling liquidity levels using its quantitative and price operational objectives in controlling aggregate spending pressures or effective demand, whether by performing the stable exchange rate and the role of the foreign currency window in absorbing demand in Iraqi dinars or using financial instruments launched by the Central Bank when needed using the interest instrument to control the money supply and targeting its growth grades in the range required to stabilize the general level of prices."
 
He pointed out that "the combined role of monetary and fiscal policies will undoubtedly work in addressing the potential inflationary pressures resulting from aggregate demand or aggregate spending in the economy, as public budget spending is the main source of demand or spending."  
 
"According to International Monetary Fund data, Iraq is currently one of the countries with moderate prices compared to other countries in the world," Saleh said.