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The continued decline of oil may delay release of grades .. after the return of international oil prices to decline to the lowest level in the past week, warned a number of experts and MPs specialists in financial and economic to increase the budget in 2015
3/22/15
BAGHDAD / JD / .. after the return of international oil prices to decline to the lowest level in the past week, warned a number of experts and MPs specialists in financial and economic to increase the budget in 2015, which were based on the sale price of a barrel of oil B56 dollars, for more than 70% in the deficit issue If the continuing decline in oil prices in world markets, noting that in the case of the government's inability to pay off the budget deficit will be suspended implementation of the budget of some projects and deferred to future years, including the grades.
He says the parliamentary finance committee member Abdul Qader Mohammed, said the 2015 budget set at the price of oil is estimated to $ B56 per barrel, oil prices in world markets began to range between 50 to $ 55 a barrel during the first quarter of the current fiscal year, and this certainly will affect the deficit the budget.
He said Muhammad's / BD /: that although the government and the Council of the financial and economic Balgantin the House and put the mechanics and foundations to overcome the financial crisis through the pressure on expenses, but this does not mean that the crisis is over and the fiscal deficit can be easily repaid.
He noted that in the event of continued decline in oil prices to below $ 30 per barrel, the government will be forced to stop the implementation of many important projects in the budget of 2015, including the postponement of the launch of the grades possibly next year until the end of the financial crisis.
Although the Iraqi Oil Minister Adel Abdul-Mahdi is likely to rise in oil prices in world markets, reaching more than $ 70 per barrel, oil prices resumed to decline until Brent record $ 54 during the past two days, amid fears by experts continually decline after the return US production and increased displayed in the global markets.
As a member of the Committee on Economy and Investment parliamentary Muhammad Ali ruled out for a financial crisis in the event of continued decline in oil prices to below $ 30, indicating that the government and parliament have taken their reserves through the preparation and drafting of the budget in 2015.
He said Mohammed told / BD /: that in the event of lower oil and increase the budget deficit to the level of government can not Tsudaih, you can resort to external borrowing from the International Monetary Fund, as well as domestic borrowing to be repaid over the coming years.
He added that the government has no intention to perform some service projects included in this year's budget in a way payment on credit, and this will ease the burden on the budget, pointing out that the grades will be launched in the next few months and can not be delayed or postponed last year, the fact that grades were not fired because of a failure to approve the budget public.
For his part, carrying economist Muhammad al-Hassani, the federal government and the House of Representatives responsible for any financial crisis occurs in the country due to lack of determining an appropriate price for oil in the general budget, stressing that he was the first government that relies on international experts in the preparation of the financial budget of the state.
He said al-Hassani told / BD /: the adoption of the price of a barrel of oil at $ 56 in light of the continued decline in oil prices in world markets raises concerns about the fact that prices are low and this will probably continue for the middle of next year.
He called on the government to take measures according to the mechanics and to stop the implementation of some projects less important in the 2015 budget and work to increase oil export rates to overcome the threats to the country's financial crisis
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