The Cabinet approves {reducing expenditures and maximizing revenues}

The Cabinet yesterday approved the recommendations issued by the Ministerial Council for the Economy regarding reducing expenditures and maximizing revenues, as part of the economic and financial reform program. This comes at a time when the Prime Minister’s financial advisor, Dr. Mazhar Muhammad Salih, expects the state to achieve initial tax revenues of approximately 8 trillion dinars this year, representing about 50% of the total non-oil revenues estimated at between 16 and 17 trillion dinars, with the possibility of these revenues rising to 18 trillion dinars by the end of the year.

Saleh explained to Al-Sabah that these indicators reflect a gradual shift in the structure of public revenues away from total dependence on oil, as the government aims to raise the contribution of non-oil revenues to about (20%) of total public revenues, compared to less than (10%) in previous years.

The Ministerial Council for the Economy approved a package of decisions related to reducing spending and maximizing revenues, during an extraordinary meeting held on Monday, chaired by Prime Minister Mohammed Shia Al-Sudani.

The Council decided to equalize the salaries and allowances of all employees of the Presidency and the Parliament with those of the Prime Minister’s office. It also tasked the specialized committee within the Ministry of Planning with urgently updating the report on unifying the salary scale for employees, in accordance with the recommendations submitted on this matter. As part of the spending reduction measures, allowances for official travel for government employees were cut by 90%, and travel is now prohibited except in cases of necessity and with the approval of the relevant minister.

On the sidelines of the fifth regional conference of the Al Baraka Forum for Islamic Economics held in Cairo, the Governor of the Central Bank, Dr. Ali Al-Alaq, confirmed that Iraq has succeeded in reducing the inflation rate to about (1%), and increasing the size of foreign reserves, while maintaining the stability of the exchange rate, despite the fact that public finances depend on oil by more than (90%).

Alsabaah.iq