«Economy News» publishes the budget law 2018

«Economy News» publishes the budget law 2018



03/03/2018

Economy News Baghdad:

The "Economy News" published the text of the Budget Law 2018, which was legislated by the House of Representatives on Saturday. And the details of the law:

On behalf of the people

Presidency of the Republic

On the basis of what was approved by the House of Representatives and approved by the President of the Republic and based on the provisions of item (I) of Article (61) and Article (III) of Article (73) of the Constitution .

The following law was issued :

Law No (2018)

Federal Budget Law of the Republic of Iraq for the fiscal year 2018

( Chapter I )

Revenue

The revenues of the federal budget for the fiscal year 2018 are estimated at (91643667236) thousand dinars (Ninety-nine trillion six hundred and forty-three billion six hundred and sixty-seven million two hundred and thirty-six thousand dinars) as shown in Table (A) According to the preparation) attached to this law .

B - Calculation of the revenues from the export of crude oil based on the average price of (46) dollars (forty six dollars) per barrel and the export rate of (3888000) barrels per day (three million eight hundred and eighty-eight thousand barrels per day), including (250000) barrels per day And fifty thousand barrels per day) of the quantities of crude oil produced in the provinces of the Kurdistan region on the basis of the exchange rate (1182) dinars per dollar and all revenue is actually achieved a final revenue for the state treasury .

Second: The ministries and entities not affiliated with the Ministry and the provinces are obliged to record all the cash grants received under the memorandums of understanding with foreign governments or institutions as final revenues of the Federal Treasury and the Federal Ministry of Finance to reallocate them for the purposes granted for them .

Third: The amounts allocated to the ministries and non-affiliated entities in the Ministry and the governorates after being accepted by the Federal Minister of Finance shall be credited as final revenue to the Federal General Treasury. The Federal Minister of Finance shall allocate them to the appropriations of the Ministry or the entity not connected to the Ministry of Disbursement in accordance with the purposes for which they were granted .

The amounts of grants or donations from foreign governments and institutions to ministries and entities not affiliated with the Ministry or the governorates and the provincial councils under memorandums of understanding or from the private sector shall be recorded as final revenues for the Treasury whether these grants and contributions are in the form of technical assistance or the implementation of projects (other than training courses) , And that their guesswork is recorded in the records of the ministry or the non-affiliated to the ministry or the regions and governorates and the provincial councils of the relationship and acceptance of cash or in kind grants and re-allocation in coordination between the beneficiaries and each of the ministries of planning Financial federated .

Fifth: The amounts of grants and unused subsidies shall be calculated from the amounts allocated to the government departments and public sector companies by the end of the fiscal year 2017 in accordance with the accounting standards used to calculate the final disbursement. The surplus or overpayments on these bases shall be considered as an advance against the grant allocated to the department or unit per year Finance .

( Chapter II )

Expenditure and disability

Article (2) First: Expenditure - The amount of (104158183734) thousand dinars (one hundred and four trillion and one hundred and fifty billion and one hundred and eighty-three million seven hundred and thirty-four thousand dinars). For the fiscal year 2018, including the amount of internal and external debt installments of (8246899000) thousand dinars (eight trillion two hundred and forty-six billion and ninety nine hundred and ninety million dinars), distributed according to (field / 3 total expenditure) of (Table / B expenditures by ministries) Annexed to this law .

1) The amount of (24650112138) thousand dinars (twenty four trillion and six hundred and fifty billion and one hundred and twelve million and one hundred and thirty thousand dinars) for project expenditures to be distributed according to (field / 2 expenditures of investment projects) of (Table / B expenditures by ministries) Law. Including the amount of (5516318350) thousand dinars (five trillion five hundred and sixteen billion and three hundred and eighteen million and three hundred and fifty thousand dinars) through foreign loans .

2) The amount of (79508071596) thousand dinars (seventy-nine trillion five hundred and eight billion seventy-one million five hundred and ninety-nine thousand dinars) for the current expenditures according to (Field / 1 - current expenditures of (table / expenditures by ministries) attached to this law .

3 A allocates an amount of (192 million) thousand dinars (one hundred and twelve ninety billion dinars) contingency reserve within the provisions of other expenses for the budget of the Federal Ministry of Finance out of the allocations mentioned in item (I-b) referred to above, including the Council of State and Council of Ministers Resolution No. ( 350) of 2016 .

(B) The Council of Ministers shall add (2) trillion dinars to the contingency reserve allocations, provided that the disbursement shall be made to fill the shortfall in the account of employee compensation, investment projects, social protection network, the care of the disabled, special needs and martyrs' institution. An increase in global export revenues of crude oil has been achieved .

4) An amount of (400000000) thousand dinars (four hundred billion dinars) is allocated for (reconstruction and development of projects in all governorates) out of the allocations referred to in item (a / a) of Article (2) above is distributed according to the population of each governorate, As follows :

The governor must submit the plan for the reconstruction of the governorate and the districts and sub-districts approved by the Council of the province, depending on the plans drawn from the councils of districts and districts to the Ministry of Planning Federal for the purpose of study and approval to take into account the most affected areas within the province and to allocate allocations to maintain districts and related areas (15%) (15%) of the allocations of the province and (5%) (five percent) of the projects. Strategy of poverty alleviation .

B- The Governor shall exclusively implement the approved reconstruction plan and the Governorate Council shall be responsible for monitoring implementation .

5. 5% (5%) of the crude oil revenues produced in the governorate and 5% (5%) of refined oil revenues in the governorate refineries and 5% (5%) of the revenues Natural gas produced in the province, provided that the province chooses to choose one of the revenues produced above and to allocate an amount of

(400.000.000) thousand dinars (four hundred billion dinars), in the form of projects to the provinces of production out of the allocations referred to in item (I - A) of Article (2) above and for the Governor after the approval of the provincial council the right to dispose of and use no more than (50) (50%)

Of the allocations referred to above for the purpose of importing electrical power or providing services for the province and cleaning or treatment expenses for patients inside and outside Iraq or for current expenditures according to the needs of the province. The priority of spending for the areas most affected by the production and liquidation of oil and environmental protection projects, . And that the settlement of the calculations after the audit of the Federal Audit Bureau

Including the dues of the governorate for the previous years, for which no allocation has been made and 20% (20%) of the amounts realized from increasing the actual revenues from the planned revenues in the Federal Budget Law of 2018, provided that they are granted every six months, To be spent in the strategic and service projects within the most harmful areas .

Disability

1 - The total deficit planned for the federal budget for the fiscal year / 2018 ( 12514516498) thousand dinars (twelve trillion five hundred and fourteen billion five hundred and sixteen million and four hundred and ninety thousand dinars), and covers the deficit of the abundance achieved, and then borrowing internal and external except for loans Financed by foreign entities for projects included in the deficit gap table financed by the deficit and from the cash withdrawn in the account of the Federal Ministry of Finance from the increase in selling prices of crude oil exported or increase crude oil exports according to the details shown below :

T vocabulary Amount (thousand dinars )

1 = ( A + B) Total revenue 91,643,667,236

A) Oil revenues: 77,160,392,640

B Non-oil revenues 14,483,274,596

2 = ( A + B) Total expenditure 104,158,183,734

A Current expenditure 79,508,071,596

B Total investment expenditure 24,650,112,138

- Investment expenditure from Treasury 19,133,793,788

- Investment expenditure through foreign loans 5,516,318,350

3 total deficit planned 12,514,516,498

Financing for the financial gap (deficit )

A balances of the accounts of ministries and entities not linked to the Ministry of government banks 250 million

The balance of the Ministry of Finance account is 742,835,421

C Loan from the World Bank, banks and other international companies 1,300,200,000

D IMF loan to support the budget 1,891,200,000

E Japan International Cooperation Agency loan JICA to support the budget 236.4 million

And the Saudi Development Fund loans 35,460,000

G Foreign bonds 1,182,000,000

H remittances through banks 1,133,696,725

I Loan (JBIC) 94,560,000

The loan of the World Bank / projects 296.9184 million

As US loan for the purpose of reinforcing 834.9648 million

For the British loan (export loan) 1,016,520,000

M loans guaranteed by international export guarantee institutions 1,071,364,800

The German loan (KFW) is 179,664,000
The Swedish loan is 141,840,000

P Italian loan 92,905,200

P Japanese Agency loans JICA / projects 692103552

R German loan projects Siemens 283,680,000

S maintenance of the Ministry of Electricity Projects from Export Guarantee Corporation loans GE 413,700,000

T Kuwait Fund for Development 94.56 million

U loans from OPIC US or global export guarantee institutions 236.4 million

V The International Fund for Agricultural Development 5.6736 million

The French Agency for Development 87.87 million

2. The Federal Minister of Finance or his authorized representative after the approval of the Council of Ministers shall be entitled to fill the actual deficit

In the budget mentioned in paragraph (a) above from the sources listed below :

a. Issuing treasury transfers .

B. Issuing national bonds to the public .

C. Issuing bonds and remittances to government banks are deducted from the Central Bank of Iraq .

Dr. Loans from commercial banks .

e. Borrowing from the World Bank, International Monetary Fund and Japanese International Cooperation Agency to support the budget

And. Issuing foreign bonds and loans that are tax-exempt .

3 - The Federal Minister of Finance or whoever is authorized to borrow from abroad to finance development projects after the approval of the Council of Ministers from the sources mentioned below, and the continuation of loans approved in previous years .

a. Continue to borrow from the Japanese International Cooperation Bank (JBIC) out of the loan amount (500) million dollars (five hundred million dollars) to finance projects of the Ministry of Electricity. In the amount of (80) million dollars (eighty million dollars) from 2018 .

B. The Federal Finance and Planning Ministers should include the annual allocations of the loan to finance projects for the Ministries of Electricity, Construction, Housing, Municipalities and Public Works, Health, Labor and Social Affairs, Higher Education and Scientific Research. , Agriculture, Commerce, Education, Migration and Displaced, and the Baghdad Secretariat in 2018 ).

C. To continue to borrow from the Japanese Agency for International Cooperation (JICA) in the amount of (1500) million dollars (one thousand and five hundred million dollars) for the purpose of financing projects in the amount of (585,536) million dollars (for the year 2018) distributed as follows :

▬ Projects of the Ministry of Construction, Housing, Municipalities and Public Works $ 128 million

▬ Projects of the Ministry of Electricity 276.5 million dollars

▬ Ministry of Water Resources projects $ 2.4 million

▬ Projects of the Ministry of Oil 41.375 million dollars

▬ Projects of the Ministry of Industry and Minerals $ 13.4 million

- Ministry of Health and Environment projects $ 3.6 million

▬ Ministry of Transport projects $ 67.461 million

▬ Ministry of Communications projects $ 8 million

- Electricity projects for the provinces of Kurdistan region 28.8 million dollars

▬ Municipal projects for the provinces of Kurdistan 16 million dollars

Dr. To continue to borrow from the German Development Bank (KFW) out of the loan amount (500) million euros (five hundred million euros) to finance projects for the reconstruction of areas liberated from terrorism and the amount of (152) million dollars (one hundred and fifty-two million dollars) for 2018 .

e. The Italian loan amount of 260 million euros (two hundred and sixty million euros) will be financed by an amount equivalent to (78.6) million dollars (eighty seven million six hundred thousand dollars) in 2018 distributed as follows :

▬ Projects for the Ministry of Water Resources: $ 46.600 million

▬ Projects of the Ministry of Agriculture $ 16 million

▬ Projects of the Ministry of Commerce $ 16 million

And. (4550) million dollars (four billion five hundred and fifty million dollars) to finance the needs of the Ministry of Defense and will be funded (706.4) million dollars (seven hundred and six million four hundred thousand dollars) of it in 2018 .

G. Continue to borrow out of the amount of the World Bank loan (500) million dollars (five hundred million dollars) to finance the projects of ministries in the amount of (251.2) million dollars (two hundred and fifty million two hundred thousand dollars) for the year 2018 and as follows :

▬ Ministry of Construction, Housing and Public Municipalities 175.2 million dollars

▬ Ministry of Electricity $ 12 million

▬ Amanah Baghdad $ 40 million

▬ Ministry of Health and Environment: $ 14.4 million

▬ Ministry of Finance 6.4 million

▬ Ministry of Planning 1.6 million

▬ Governorates of the Kurdistan region $ 1.6 million

H. Continuing to borrow from the British Export Bank (UKEF) to finance infrastructure projects in the amount of (160) million dollars (one hundred and sixty million dollars) during 2018 and distribute

As follows :

▬ Ministry of Construction, Housing, Municipalities and Public Works to finance :

- Water desalination project for the province of Basra $ 80 million

- Hilla sewer project 80 million dollars

I. Continue to borrow from foreign banks guaranteed by EKN Swedish at $ 500 million (five hundred million dollars) to finance the Ministry of Electricity , which will be implemented by the company projects (ABB) at $ 120 million ( one hundred and twenty million dollars) for projects the ministry mentioned the 2018 .

J. To continue to borrow from the German Export Guarantee Corporation, Standard Bank and Gartrad for 500 million dollars (US $ 500 million) for the implementation of the German Siemens project of the Ministry of Electricity and will be funded (160) million dollars (one hundred and sixty million dollars) in 2018 .

4. Authorizes the Federal Minister of Finance to borrow (22) million dollars (twenty-two million dollars) for water supply projects in the governorates of Kurdistan Region, including the Halabja water project and from the JICA loan .

5 - Continuing to authorize the Federal Minister of Finance or his successor after the approval of the Council of Ministers to borrow $ 2500 million (two billion and five hundred million dollars) to guarantee the international export institutions for the purchase of arms and ammunition and the logistical support of the Ministries of Interior and Defense, The amount of (906.4) million dollars (nine hundred and six million four hundred thousand dollars) from 2018 distributed as follows :

a. Ministry of Defense $ 600 million

B. Ministry of Interior $ 146.4 million

C. The popular crowd is $ 80 million

Dr. The anti-terrorism apparatus is 80 million dollars

6. Continuing to borrow for the various annual maintenance projects of the Ministry of Electricity with the guarantee of international export guarantee institutions in favor of the US company GE. The sum of 350 million dollars will be financed in 2018 .

7. Borrowing from the Kuwait Fund for Arab Development an amount of 440 million dollars (four hundred and forty million dollars) to finance projects for the Ministry of Education in the amount of (80) million dollars (eighty million dollars) during 2018 .

8. Borrowing from the Saudi Fund for Development the amount of (500) million dollars (five hundred million dollars) to finance projects in the amount of (30) million dollars (thirty million dollars) during the year 2018 for the ministries and distributed as follows :

a. Ministry of Health $ 16 million

B. Ministry of Water Resources $ 6 million

C. Ministry of Agriculture $ 8 million

9. Borrowing from international commercial banks and with the guarantee of the German Export Guarantee Corporation (500) million dollars (500 million dollars) to finance projects of the Ministry of Electricity to be implemented by the German company Siemens (80 million dollars) (80 million dollars) in 2018 .

10. Borrowing from the International Fund for Agricultural Development (IFAD) the amount of (15.730) million dollars (fifteen million seven hundred and thirty thousand dollars) for the projects of the Ministry of Agriculture will be funded amount

(4.8 million ) dollars (four million eight hundred thousand dollars) through 2018 .

11. Borrowing from the World Bank the amount of (1140) million dollars (one hundred and forty-one million dollars) to finance the projects listed below :

▬ Reconstruction of liberated areas / phase II $ 400 million

▬ Emergency Project for Social Stabilization and Resilience / Ministry of Labor and Social Affairs by granting micro-enterprise loans and income-generating $ 200 million

▬ Funding social development projects in the Ministry of Planning $ 300 million

▬ Project to develop the distribution and transmission of electricity in the province of Basra $ 200 million

▬ Social Protection Strategy Road Map / Ministry of Labor and Social Affairs $ 40 million

The Federal Ministers of Finance and Planning should add the annual allocations to finance the above parties for 2018 of the loan amount .

12. Borrowing from the US Overseas Private Investment Corporation (OPIC) or the Global Export Guarantee Institutions (US $ 386) million (three hundred and sixty-six million dollars) to finance

Samawah Electricity Stations Project

And Dhi Qar / Ministry of Electricity for GE) . $ 200 million ($ 200 million) will be funded in 2018 .

13. Borrowing from the Japanese Agency for International Cooperation (JICA) the amount of (1314) million dollars (one thousand three hundred and fourteen million dollars) to finance the projects and distributed as follows :

a. ($ 174 million), including the increase of 54 million dollars (fifty-four million dollars ).

B. The project of the auxiliary worker refining unit for the Ministry of Oil (1000) million dollars (one thousand dollars ).

C. The second irrigation project for the Ministry of Water Resources (140 million dollars) (one hundred and forty million dollars ).

The Federal Ministers of Finance and Planning must add the annual allocations for the above projects within the 2018 budget .

14. Borrowing with the guarantee of the China Export Insurance Corporation the amount of (500) million dollars (five hundred million dollars) to finance infrastructure projects and the Federal Ministers of Finance and Planning to add the annual allocations of projects above within the budget of the relevant bodies for 2018 .

Borrowing from the British Export Bank ($ 1020) million ($ 1.2 billion) to finance the Ministry of Electricity, including $ 700 million ($ 1 million) in 2018, distributed as follows :
- Ministry of Electricity to finance :

- Project of electricity stations of Nasiriyah and Samawah 500 million dollars

- Energy transfer project with GE $ 200 million

Continuing to authorize the Minister of Finance and with the approval of the Council of Ministers to provide sovereign guarantees for investment projects in the electricity sector as follows :
A) Guaranteeing a debt of $ 1.2 billion with interest .

B. Guarantee payments of services not exceeding (1) billion dollars for a period of three years beginning

Year / 2020 .

To the Federal Minister of Finance or his authorized by the approval of the Federal Prime Minister to issue guarantees to :
A- General Electric Company (63 million dollars) (sixty three million dollars) for the financing and maintenance of the Qayara stations of the Ministry of Electricity

South Korean company STX for $ 125 million (one hundred and twenty-five million dollars) to finance, rehabilitate, maintain and operate the stations of the Ministry of Electricity .

The Federal Council of Ministers may transfer between the loan allocations specified in paragraphs (2) and (3) of Article (2) of this Article and change the name of the beneficiary .
19. All sovereign guarantees of investment projects shall be approved by the Council of Ministers and approved by the Council of Representatives .

20. It is not permissible to conclude a loan agreement with foreign governments conditional on the pledge of oil and its derivatives without the approval of the House of Representatives .

21. The Federal Government and the Ministry of Oil commit to review the contracts of oil licensing rounds to amend the terms of contracts in a manner that preserves Iraq's economic interest and pays for increasing oil production and reducing costs and finding a mechanism for cost recovery to be compatible with oil prices and all regulatory bodies to report to the House of Representatives on the procedures of implementation of this article during Current year .

22 - Obligation of the Ministry of Oil to implement the decision of the Committee on Energy Affairs in the Council of Ministers No. 139 of 2013 the establishment of the second side of the path of the path (the second corridor) and the link between the province of Maysan with the province of Diwaniyah, according to contracts licensing rounds to provide social service .

( Chapter III )

General and final provisions

Article (3): The expenditure shall be deducted from the main expenditure accounts (compensation of employees, service inputs, commodity inputs, maintenance of assets, capital expenditure, grants, subsidies, debt service, interest and other expenses, liabilities, contributions, Federal Budget of the Republic of Iraq from the Federal Minister of Finance. The competent minister or the head of the entity not connected to the Ministry or the Governor or the Chairman of the Governorate Council shall have the authority to disburse directly in the light of the funds allocated within his annual budget and for the purposes specified for it under the expenditure plan approved by the Federal Minister of Finance. Federal .

Article 4 - First - The Federal Minister of Finance authority to conduct transfers between the appropriations of the federal budget of the Republic of Iraq approved in the annual federal budget at the level of sections, sections, chapters, materials, species and sequence of type and each case separately .

Second: Ministers and heads of non-governmental entities and governors, including the governors of the governorates of the Kurdistan region, shall be entitled to transfer between the appropriations of the expenditure units included in their annual budget by a percentage not exceeding five percent of the exchange unit of the other exchange unit, Of the capital projects appropriations, subject to the provisions of section (8) of Section (9) of the Financial Management Law

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