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British report: Iraq is unable to finance its projects for the next three years

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A report by the British, on Thursday, Iraq's inability to finance its projects during the next three years, noting that it would be pressed in the future to announce the formation of new regions seceded from the center.

The report, issued by the International Center for Development Studies, based in London that "the Iraqi government will be unable to finance their projects or to fulfill its obligations within the next three years, as a result of the inability of Iraq to provide sources of income other than oil to finance its budget public, in addition to increasing government spending by up to 60%, "adding that" the proportion of the deficit would be great to the extent that it threatens to halt a number of projects in different parts of the country. "

The report added that "the general budget for the current year, amounting to 150.1 billion dollars is no different from its predecessors, only that it was characterized by an increase of the deficit by 18 billion dollars, compared with 16.7 in 2013 and an average of 12% of the overall budget," noting that "the budget year 2104 depends on oil revenues by more than 95% and the form in which this affects prices and the vagaries of the global market to finance those expenditures budget. "

The report emphasized that "in spite of Iraq sought to increase its oil production to more than 4.7 million barrels per day until 2015, but the oversupply in the global markets with a strong return for Iranian oil and increase the production of oil shale in the United States and slow growth of the Chinese economy are all factors began to push the price of crude Brent, who could fall over the next year in 2015 to about $ 100 a barrel. "

The report pointed out that "the outstanding issues between Baghdad and the province regarding the dues of companies and balancing the guards of the region is an obstacle to capitalize on the budget from oil exports to the region, amounting to 400 000 barrels per day," pointing out that "the Iraqi government demanded by obtaining revenue for the entire quantity exported while insisting Erbil that exports did not exceed 255 thousand barrels per day. "

The report also pointed out that "the general budget in Iraq is suffering from a significant rise in public spending, especially since the large increases occurred due to pay retirement and increasing the minimum wage and install staff contracts and compensation rain and floods and student grants and other expenses which carried this year's budget burdens too big" , asserting that "Iraq needs to support dramatically improve the reality of the infrastructure for oil and gas sector at a time by which the Iraqi government about its intention to increase its oil exports, but the actual exports in the last year 2013 amounted to 872.3 million barrels, an average of 2.39 million barrels per day, compared with the average daily production of 2.42 million barrels per day during the year "2012.

The report pointed out that "Iraq needs to spend nearly a trillion dollars over the next ten years to develop its oil sector and a number of strategic projects, most notably the housing industry, but that this figure seems far-fetched, especially in light of the difficult conditions to attract foreign investment and lack of flexibility of the economic system and the failure of the banking environment in Iraq, "stressing that" Iraq in the absence of its success in reducing the expenses of government and reform of its economic system and its institutions, which suffer from red tape and bureaucracy, and financial and administrative corruption as well as to diversify sources of income and find quick solutions to provide security and stability, it could pressure future for the formation of new regions announces separation from Center raises questions about the future of Iraq as a state oil and a strong economy. "

The Iraqi Oil Ministry has revealed, last Sunday, that next year's budget in 2014 requiring the export of three million and 400 000 barrels per day, and at the time, who confirmed that the province has pledged to provide 400 thousand barrels per day, pointed out that the oil companies operating in the oil fields within the licensing rounds has programs for production increases.

Revealed the Ministry of Planning in September 28 last in the event that the budget has not changed in the corridors of the Iraqi Council of Representatives, it will include the presence of 132 000 degrees and careers, including 72 000 degrees for the owners of the contracts and 60 000 new degree.

The Council of Ministers approved, on (23 October 2012), the 2013 budget worth 138 trillion Iraqi dinars on the basis of calculating the price of a barrel of oil at $ 90 per barrel and the amount of 2.0009 million barrels a day.

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