Expert: increase the operating expenditures of the budget raises inflation
12/06/2012 12:00 am
warned economist Salim al-Daini, potentially affected by the increased operating budget allocated to salaries in the state on the inflation index, if distributed in a way that is well thought out.
Daini said: The high annual inflation index in Iraq is due the absence of a thorough strategic planning in the country, noting that the process of pumping money by the government to citizens, whether for salaries or loans held in random ways without a study of the feasibility of a clear economic market.
: that the increase in operating expenses in the general budget will increase the money supply in the market in the absence of local product, calling for a balance in the financial allocations between operating expenses and investment to offset the year (2013).
Daini said: The plans by the government Federal to increase the purchasing power of citizens to serve as "processors prosthesis" by increasing salaries and grant financial advances addresses a specific area of the state to cover the purchasing power but on the other hand will increase the rate of inflation in the country.
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