INA - BAGHDAD
The Cabinet decided to transfer the Ministry of Finance 5 billion dinars from the fodder subsidy allocations (yellow corn) to purchase fodder and other supplies, to be provided free of charge to buffalo breeders in southern Iraq, as they also agreed to amend its resolution No. 342 of 2019, to include granting the minister authorization its direct powers to government public companies, within the permissible ceiling.
"PM Muhammed S. Al-Sudani chaired on Tuesday, the thirty-second regular session of the Cabinet, during which developments in the general situation in the country were discussed, and a number of issues were discussed including the basic files that are among the government's priorities," said the media office of the Prime Minister in a statement received by the Iraqi News Agency - INA.
During the session, the Cabinet discussed the country's general situation, the most prominent issues, and the items on the agenda and issued several decisions.
The session involved a discussion of the government's plans following the enactment of the Federal Budget Law. Special attention was given to the necessity of revising and enhancing projects within the government program, aligning them with financial allocations from operational and investment budgets for ministries and sectoral entities.
In this regard, the Prime Minister directed the following:
1. Ministries and non-ministerial government agencies should promptly commence executing projects outlined in the government program, fulfilling technical, financial, and legal prerequisites. Project priorities need updating in accordance with allocations and the government's five key priorities, as specified in the government program. Emphasis should be on high-impact service projects with substantial completion progress, benefitting a significant portion of citizens. Ministries must furnish project requirements and submit them to the Ministry of Planning by August 15, 2023.
2. The Ministries of Planning and Finance are required to provide a comprehensive breakdown of financial allocations for operational and investment aspects of the government program. This should be done individually, adhering to their respective jurisdictions, in line with the Federal Budget Law and its instructions. The submission deadline for these details is August 24, 2023.
The Cabinet continued discussing agenda items and making pertinent decisions and recommendations. Regarding the stalled hospital projects, the Cabinet authorized the Ministry of Health to issue direct invitations, exempt from the instructions for implementing government contracts (2 of 2014). This decision pertains to hospitals within the Baghdad Health Departments (Karkh and Rusafa). The Baghdad Governorate assigned these projects to the Ministry of Health, as detailed in the Ministry letter dated August 6, 2023, which outlined the approved projects.
In the economic sector, the Cabinet endorsed the recommendation of the Ministerial Council for Economy No. (230162) of 2023. This recommendation entails the allocation of 1,403,000 dollars to augment the capital of the International Finance Corporation (IFC).
The Cabinet further sanctioned a second recommendation from the Ministerial Council for Economy (230163). This recommendation encompassed the endorsement of the exemption for fish farm proprietors from rental charges for past years, as outlined in the Ministry of Agriculture's letter. The exemption is set at a rate of 50%, in compliance with the Legislative Decree (995 of 1985).
In terms of the services for individuals with disabilities, the Cabinet endorsed the Ministerial Council for Social Services' recommendation (23018) concerning regulations for importing adapted vehicles for individuals with disabilities. These import regulations were ratified, incorporating considerations from the Legal Department at the General Secretariat of the Cabinet.
In line with the Prime Minister's directives and previous sessions of the Higher Committee for Water aimed at addressing water scarcity challenges and minimizing its impact on agriculture, the Cabinet authorized the adoption of closed irrigation systems and modern irrigation techniques. This implementation will be tailored to the specific needs of various agricultural projects. Furthermore, these measures will serve as essential criteria for granting investment licenses for future agricultural projects.
In the context of government support for livestock in Iraq, and the many problems buffalo breeders face, the following has been approved:
1. The Ministry of Finance is authorized to allocate 5 billion dinars from the fodder allocation subsidies allocated in the federal budget for fiscal years 2023-2024-2025. These funds will be redirected toward procuring fodder and other essential supplies. These supplies will be distributed to buffalo breeders in southern Iraq at no cost exempt from the instructions for implementing government contracts (2 of 2014).
2. A task force is to be established, uniting the Ministry of Agriculture's departments (livestock and agricultural training) with the Food and Agriculture Organization of the United Nations in Iraq (FAO). The task force will oversee and execute the initiative. The distribution process will directly involve breeders through the Ministry of Agriculture, represented by the aforementioned task force. Additionally, the Ministry of Agriculture will present an evaluation of regular buffalo barns as part of this endeavor.
While pursuing administrative reform and tackling obstacles, the Cabinet has decided to enhance Resolution No. 342 of 2019. This revision entails empowering the minister with direct authority over government public companies, within permissible limits.
The Cabinet also discussed other agenda items and made the subsequent decisions:
First: The Cabinet granted approval for the inclusion of an allocation totaling (208,670,369,700) dinars. This addition pertains to the ongoing annual service projects contract (PUP5-A) within the Ministry of Electricity's operational budget from the Government program funds for the current year, which aims to facilitate the disbursement of dues and sustain the advancement of materials for remaining contracts. Additionally, this measure prevents the cessation of listing procedures and the removal of projects from the investment plan, in accordance with the three-year federal budget law.
Second: Approving the entry into force of a memorandum of understanding between the Ministry of Foreign Affairs of the Republic of Iraq and the Ministry of Foreign Affairs of the State of Qatar, regarding the abolition of visa requirements for holders of diplomatic passports, signed in the capital Baghdad on June 15, 2023, based on the provisions of the Treaty Law (35 of 2015).
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