Parliamentary Finance: The Time Factor Determines the Quality of Borrowing

20/5/2020 13:34


The Parliamentary Finance Committee revealed a law to bridge the budget deficit, while specifying the nature of resorting to internal or external loans.
The head of the Finance Committee, Haitham Al-Jiborifi, told a press statement today, Wednesday, that "the government prepared a law form, sent to the House of Representatives for the purpose of authorizing the Minister of Finance internal or external borrowing to pay the deficit in the 2020 budget." A country that could be set off in the future. "
He added that "the total salaries amount to six trillion and the state's income does not exceed one and a half trillion," noting that "there is a shortage of 4 and a half trillion a month until the salaries problem is addressed, it must be borrowed."
Al-Jubouri pointed out that "the crisis, if it continues from 3 to 4 months, can be internal borrowing, but if it continues at the end of the year, we need the intervention of the International Monetary Fund or the World Bank for the purpose of borrowing."
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained the doors of disbursing loans that the government intends to use to enhance financial liquidity.
Saleh said in a press statement, "The government submitted a draft law to Parliament in order to authorize it to borrow from internal and external financing sources in order to bridge the deficit and enhance public financial liquidity when necessary," noting that the borrowing came because of the financial hardship that the country is going through and in order to bridge the deficit gap In revenues due to fixed expenditures, especially in the operating budget. ”
He added,“ The legal cover did not provide the government with internal and external borrowing due to the lack of the Federal Budget Law for the year 2020. ”
He pointed out that“ internal or external loans will be included in the event of legislation for the 2020 budget. ” Or his replacement The final account at the end of the fiscal year (as a fact anyway). "
Saleh also highlighted that foreign loans will go towards supporting investment projects and the completion of stalled ones and the urgent need to launch, while the allocated internal loans towards the operating budget of the government needs to secure salaries and others.
The Cabinet approved Domestic and foreign borrowing bill to finance the fiscal deficit of 2020 and refer it to the House of Representatives in accordance with the provisions of constitutional articles.