And the private sector role

21/12/2016 0:00

Samir Alnasiri
House of Representatives approved the general budget for 2017 after the birth of difficult and describing them as budget Altqhvih.omn analytical overview of the allocations note it's actually a shoestring budget when compared assignments budgets of 2014, 2015 and 2016, it was a high allocations budget compared with the budgets of neighboring and regional oil-producing countries, which characterized the budget in 2017 is the installation of materials specific to support national production and supporting private sector investment and participation in ministries and provinces with the exception of all the laws in force.

The state budget is a detailed statement of relying contain overall revenues and that obtained from oil is expected by 95 percent of public expenditures, which requires spending during the budget year, they are financial program with the general plan for economic and social development of the country in the investment side and operational side.

Therefore, the decline in global oil prices and internal conditions of Iraq and the war on terrorism and the problem of the displaced and the crisis cash shortages should be addressed through the provision of attractive economic environment for the national capital to contribute to the development and the creation of appropriate conditions provide reassurance to the private sector in order to participate in the investment process and this requires the government to maintain the stability of the Iraqi dinar against the US dollar and not get a big gap between the official price and the price in the gray market.

It also requires stagflation treatment as a result of the worsening unemployment rate and not be absorbed due to suspension or postponement of infrastructure investment projects giant investment plans, and find economic solutions to repair the economic and financial crisis and how to benefit from expectations of a continued rise in oil prices, which is expected to provide up to nine billion dollars and this will cut up 50 percent of the estimated 2017 budget deficit.

But there must be an active role for the private sector and the national and particularly the private banking sector, because without a sound banking sector can not build a sound national economy, and that means the involvement of the private banking sector and the private sector a greater role in economic decision-making and implementation of the false articles of the budget.

The next stage is requiring the investment climate is encouraging the provision to attract national and foreign capital and encourage the achievement of partnerships between the public and private sectors, and to contribute to the policies, mechanisms and strategies and participate in the follow-up implementation mode to resolve the transition programmed stages in time to a market economy, and also work to provide additional sources of financing of the general budget of the state the adoption of the development and diversification of resources towards raising the proportion of other resources in the non-oil GDP.

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