PM Advisor: The country's financial situation indicates a recognizable stability

PM Advisor: The country's financial situation indicates a recognizable stability


INA - BAGHDAD

The financial advisor to the Prime Minister, Mudhhir Muhammed Salih, ruled out a financial deficit during the current fiscal year 2023. While he put forward two reasons, he confirmed that the financial situation in the country indicates a high degree of stability.

"The federal general budget for the years 2023-2024-2025 has taken sufficient precaution for fluctuations in annual budget revenues, specifically oil revenues, as the fiscal policy adopted a hypothetical or precautionary deficit amounting to approximately 64 trillion dinars," said Salih to the Iraqi News Agency - INA.

He added, "The federal general budget indicated at the same time in its law a clear precautionary detail for the sources of financing that deficit as well. Its financing sources will be necessary from the surpluses of the internal financial market, by dealing with bonds and treasury transfers issued by the government. It will be bought by the banking system and the public from their financial resources to be available in order to invest in those government securities and consider them excellent debt instruments."

“Despite the foregoing, we do not expect a deficit during the current fiscal year for two reasons: the first is the existence of a financial surplus of about 23 trillion dinars. The second is that the cycle of oil assets is trending upward, as the average barrel of Brent oil touches $85, which means that there is demand increasing global demand for oil," he included.

Salih added, "If the situation continues until the end of the current fiscal year, the country's financial situation indicates a high degree of stability in a positive way," warning at the same time "the importance of imposing financial discipline in managing the state's public expenditures, as well as maximizing financial revenues according to the timing required to ensure its cash flows in a reassuring and proper manner, to ensure the country's financial sustainability."