24/10/2015 06:25 PM
Iraqi Council of Representatives is preparing to take over the 2016 budget from the government, which was forced when drafting the law to secure the operating budget only, in what would be allocated to the same investment budget deficit.
Finance Committee in the House of Representatives noted that the government has allocated next year's budget to 113.5 trillion dinars (about $ 100 billion), less than the current year budget of six billion dollars.
She said a member of the economic and investment commission parliamentary Noura Mohammed Salem said in a statement that «the preliminary information on the distribution of the budget the way, show that 75 percent of the allocations will be for the benefit of operating expenses, and the remaining quarter of the investment budget.
As the deficit ratio stood at 29 trillion dinars, it means that all of the resources will be operational ». And it warned that the continuation of more than 6,500 government project in Iraq to stop the second year because of falling oil prices, because that will cause more problems in what singled out the provision of services and job creation. »
In turn, Minister of Industry and Minerals Mohammed Darraji stressed that the government is considering ending the stalled projects that increase the percentage of completion to 80 percent, over the allocation of the remaining amounts, while abolished projects less than the percentage completed about 15 percent, while the remaining projects Vsaamn financed in different ways, including borrowing and postpaid ».
And means which would resort to the government and the House of Representatives, Nora said that «the committee sent recommendations to the government to work out was to raise the value of the dollar during the central bank auction, which will cover one-third of the budget deficit, and activate paragraph postpaid ceiling of five billion dollars according to the current year budget, and start lending to banks for the development of small business loans ». She added: «the government will resort to limit additional spending and borrowing from international and Arab banks and issuing internal and external bonds worth six billion dollars, and the reallocation in appropriations».
The Ministry of Planning of Iraq's oil imports were estimated in 2016, when calculating the price per barrel to 45 dollars, more than 69.7 trillion dinars, and non-oil B14.3 trillion ».
He questioned the economic expert Maitham Laibi successfully the government to obtain financial loans to bridge the budget deficit, and the successful bond issue worth 7 trillion dinars. He said «the budget deficit rose from 25 trillion dinars in 2015 to 29 trillion in 2016, a deficit covered traditionally from internal and external borrowing, but the irony is that there is a difficulty in this borrowing, as the Iraq intends to issue bonds worth 7 trillion dinars».
He pointed out that «this amount is large and there is no doubt collected due to lack of demand lenders to buy bonds, as there are heavily dependent on oil, since oil revenues ratio estimated B83 percent for 2016, compared to non-oil 17 percent, but only gets only 2 percent of non-oil revenues for 2015, which was estimated at 15 trillion ».
The Ministry of Finance announced that the figures contained in the budget are adjustable by the Council of Ministers project, as the Chamber of Deputies may be reduced, confirming its commitment to the deadlines for the preparation of the general budget and submitted to the Council of Ministers. The ministry said in a statement «it submitted a draft federal budget law for 2016 to the Council of Ministers on 14 September last, and within the time specified in the financial management and public debt law No. 95 of 2004».
She stressed that «the Federal budget for 2016 preparation, was in the light of the facts of the matter and cut public spending and reduce waste and extravagance and diversify sources of income».
The World Bank recently announced its intention to provide a loan of one billion dollars for Iraq later this year. Said Vice President for the Middle East and North Africa Hafez Ghanem said in a statement «Bank focuses on helping Iraq, and do the necessary to get him out of the financial crisis of its efforts, and we seek to increase our support to him».
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