The government reconsider its financial management

September 26, 2016 | 22:25


Network Iraqi position

The government plans by seeking to pass the Financial Management Act, which was drafted in accordance with the visions of the IMF and World Bank, to reconsider Balyatea in dealing with the financial situation.

The Economic Adviser to the Prime Minister Haider al-Abadi, the appearance of Mohammed Saleh, in a press statement on Monday, the Financial Administration Act in Iraq has historical depth and back approval for the first time in 1941, and that several alterations in the law over the previous periods until it is disabled in 2003 after the "fall of the former regime."

Saleh pointed out that the former civil administrator Paul Bremer, issued bears the number 95 for the year 2004 a decision to deal with the financial management and public debt solution rather than the previous law.

And cons of the decision, Saleh stressed that the decision "is not commensurate with the current situation", which requires legislative intervention to re-consider it, especially since most of our revenues in the forefront of centralized fiscal oil revenues. He argued that the IMF and the World Bank to monitor the negatives in Bremer's decision relating to corporate governance and transparency, and how to make decisions and presentation of data.

Saleh also reported that it comes in conjunction with the acquisition of government activity to 67% of GDP, which is high rates, indicating that these drawbacks have encouraged the government to submit a new project for the Law of financial management in line with the aspirations of the two international institutions and comparable to international standards of financial management.

He continued that "the information available to us now that the Finance Committee in the House of Representatives is very interactive with the project to be voted as soon Given the importance of the issuance of such a law of the Iraqi financial system."

The many experts directed harsh criticism of the Iraqi government, accusing it of failing to deal with the economic and financial aspects, and the enemy of the currently approved vehicles are old and where mistakes requires reconsideration for Iraq to rise to the ranks of developed countries at the financial system level.

Iraq is going through a major financial and economic crisis, due to lower global oil prices, and its impact on Iraq's budget for the years 2015 and 2016, with a budget value for the year 2016, about 105.8 trillion dinars, or about $ 95 billion, and a projected deficit of about 24 trillion dinars, the equivalent of about 20.5 Billion dollar. It depends on the sale of Iraq's oil revenues to cover about 95 percent of the country's expenses, and the oil prices have tumbled since the year 2014 from around $ 100 per barrel to less than $ 40.

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