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Specialists: Budget 2012 has seen a noticeable decline in the investment side in favor of operational expenditure
On: Sun 05/06/2012 7:57
Baghdad / writer on the
Financial specialists confirmed that the state budget has seen a noticeable decline in the investment side in favor of the increase in operating expenses. The Director General of the Department of Technical Affairs and studies in the Office of Financial Supervision Nuri Salah Khalaf (range):
That there are clear imbalances in the general budget for the year 2012, it is important to mention it is increasing the share of operating expenses by 68% at the expense of capital expenditures by 32%, which carries the meanings of decline in levels of development of capital and directed towards investment, an indicator of the presence of a distinct lack of implementation and not planning.
He added that the share of salaries within the budget is too large by 40%, the highest in between classes the other, which is supposed to come from returns or financial resources, because the employee who receives a salary from the government for him to produce and provides a resource productive to the government in the process, which we see otherwise on the ground, where large numbers of employees receive salaries for the purposes of social and other such as separation of political and the like, and they receive two salaries, one retirement and the other operational because it is still an employee of the State, the rates on the rise with the coming years, as it is forecast to rise in negative about 45% of the total budget next fiscal.
He pointed out that the investment environment in Iraq is still below the required level, as it is not directed towards the aspects of new investment such as investment in the pension fund staff to invest the money withheld from employees' salaries for retirement and invest in the aspects of different investment check rates large profits in those funds, as well as the use and employ them for disbursement Kzaadat in pensions and salaries of employees in cases of inflation without the load balancing of public finances an increase in allocations for salaries of employees and retirees.
in what she said the faculty members of College of Business and Economics at the University of Baghdad, left Mahdi said that the points of weakness marred the budget fiscal year 2012 and errors in the lack of diversification in sources of financing of the budget, a dream we hope it has not been achieved so far in not relying on one source of funding which the oil sector, as well as reducing the tax rates which is contrary to the approach to find other funding sources to balance the financial and economic stability in the country.
She added that the budget current financial year 2012 did not depend on tax revenue within its terms, but tended otherwise to reduce taxes and not to take advantage of the financial returns generated from taxes, adoption, like budgets, fiscal oil revenues as a supplier of Mali and a single budget, and adopting the wrong approach to encourage citizen the rejection of taxes and lack of interest in raising awareness of the tax to the citizen in the future, in order to diversify its sources of revenue in the budget.
, said Dr. Mohammed Abdul Saleh Professor of Business Economics at the University of Mesopotamia that there is a decline in financial allocations within the capital expenditures for agriculture and industry, and the lack of customization enough to water sector supply and sanitation, and lack of allocations for the construction industry and housing in order to reduce the housing crisis, where the ratio of this area in the current budget by about 1%, while the actual need for housing construction in Iraq between 2-3 million units.
He added that the budget did not take into consideration the gap between the center and the rest of the provinces in the proportions of financial allocations for each province according to the proportion of the population in each province with the measurement of the proportion of lack of services in each governorate, who did not do justice to the province of Muthanna, to name a few, which has a population of approximately 2-3 per ten the proportion of people in the country, where it will be the allocation is not equal to the need for adequate financial allocation for the advancement of the level of services and walk in the investment approach.
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