Concerned : non- adoption of the budget is causing economic recession

2/6/2014 0:00

Baghdad - Mostafa Hashemi - Farah pumice

Experts and economists expect a recession to occur due to the delay in approving the budget , which caused a lack of liquidity , which led to an increase in supply and lack of demand in the markets of various commodities , adding to confuse the stability of the economic situation.

According to Wikipedia , the recession is a term that expresses the decline in economic growth for the region or for a particular market , and is usually the cause of the decline in economic growth stems from that production exceeds consumption, which leads to depression goods and lower prices , so the decline rate of production , which means labor less , and a rise in the unemployment rate .

In this regard, said an economic expert , Dr. Sumaisem peace : the case of unexpected occurrence of a recession due to the situation faced by the country of not approving the budget, despite the lapse of six months of this year , as well as the likelihood of continued recession , while approving the budget .

She told the (morning) that the delay in approval will affect the levels of liquidity and the likelihood of exposure to low and squeeze as a result of the inability to pay dues .

The expert considers that the introduction of 1/12 of the Financial Administration Act , and public debt as an emergency to walk the operating budget and continued paying salaries to employees , noting that the move will impact on the investment budget allocations where projects will stop the interruption payments for.

Under the Financial Administration Act in the Budget Section (7) of Article (4) states that: « If not ratified the relevant national legislative authority to the federal budget to 31 a month in December , Vlozir financial assent and on the basis of the authentication monthly , money units spending until the ratio of 1/12 of the actual allocations for the previous fiscal year until the ratification of the budget , and that money can be used only for the payment of obligations , salaries, pensions and social security expenses and debt service . »

And upheld Sumaisem what went to him a number of economic experts from the enactment of a special passage of the budget in a certain period not exceeding two months to be approved by Parliament before the end of the fiscal year to reduce the repercussions of the delayed approval , as happened in previous years and gets underway .

Experts see the need to take measures that will prevent recurrence of the problem of delay in approving the budget every year to build the adoption of the budget as needed sectors of the state as is the case in the countries of the world , and determine the timeframe for approval and delivery of the final accounts in the last month of the financial year maximum .

For his part, Executive Director of the Association of private banks Abdul Aziz Hassoun : that under the current circumstances make it difficult to control the exchange rate of the dollar due to the central bank to pump large quantities of hard currency to the money transfer companies .

He said Hassoun told ( morning) , the disruption in the exchange rate of the dinar against the dollar will inevitably occur under turbulent economic conditions taking place in the country.

He said the control of the U.S. dollar exchange rate of the duties of the central bank , where balance between supply and demand to stabilize the exchange rate , noting that the proportion of business dealings at home in foreign currency amounting to 60 percent , which means that the dollar is Almtsid in internal trade , while it should be dealing in support of the dinar currency and the national economy .

hinted that allow for money transfer companies to enter the auction sale of the currency would be compounded by the transfer of funds abroad may damage the country's economy .

The bucking banking expert opinion of a conciliator Hassan Goldfinch on Central Bank's decision to pump up foreign currency to money transfer companies , and dealing directly with them , and so induce private banks to look for other sources of funding for intervention in the development process .

Hassan said the "morning" that the aggregate demand for foreign currency will not change according to the new orientation of the central , especially since the demand for them was through banks , either currently would deal between remittance companies with the central bank directly , eliminating the role of private banks in the operations of financial transfer , stressing that the dollar exchange rate will not rise , because it depends on supply and demand .

He called on private banks to look for other sources of income , and not rely on the dollar and money orders only in their work , urging to increase its business in the development process and the practice of banking and finance in the real other .

As for the recession and lack of liquidity in the market and says it's a case of good and clear through stopped traffic a lot of service projects and reconstruction projects in Baghdad and the provinces due to a failure to approve the budget for the current year of 2014.

Hassan suggested approving the materials budget , in order to curb the negative effects on the Iraqi economy , especially that part of the investment , which is funded service projects and reconstruction projects and infrastructure paused to stop funding through the budget affects the lives of citizens, directly as well as increase the indicators of unemployment , low activity of banks .


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Baghdad and the provinces deprived of plans and investments and created a huge economic recession and lack of liquidity of the budget crashes cancel projects and thousands of jobs
   

2/6/2014 0:00

BAGHDAD - morning

Aborted failure to approve the federal budget for the year 2014, many of the development projects and service , and to the detriment of economic sectors and wide , in Baghdad and the provinces , until it reached in its effects to a living human being simple , which is expected either employment or get a job , if the increased market activity and entrepreneurial through the launch of the budget.

Over the past period witnessed Iraq economic recession in most of its markets to the lack of liquidity , due to lack of approval of the general budget . On the other side disrupted the budget projects the reconstruction of areas affected by the terrorist attacks in different parts of Iraq .

In statistical prepared ( Center Brief for the Iraqi Media Network ) , the failure to approve the budget prevented the implementation of more than 300 projects in Baghdad , including the establishment of the skytrain , after the allocation of 100 billion dinars to create it.

 And disrupted service projects include EXA roads and the establishment of water and sewage systems worth 500 billion dinars , according to an interview with President of the Council Riad dentex for " Center Brief for the Iraqi Media Network ," which asserted that " the Baghdad Provincial Council approved the implementation of projects to build 36 stadiums , and educational projects worth $ 40 billion , within the plan of the year 2014 , is still waiting for the necessary funds .

" In Najaf malfunction of non adoption of the budget implementation of more than 400 investment project due to lack of funds , including strategic projects planned for implementation during the current year , as projects of sewage and paving roads , and construction of buildings and sanitation.

 and the absence of approving the budget without the implementation of more than 700 service project and strategic in Wasit province , according to the head of the reconstruction of the provincial council expected Nomani , who explained the " Center Brief for the Iraqi Media Network, " "The projects are sensitive to the security system at a cost of 85 billion parked too, and include control devices explosives and set up surveillance cameras in the districts and areas as well as the establishment of centers card Standard and project DNA , also hampered the failure to approve the budget in the province plans to set up a thousand housing units and low cost worth 34 billion dinars.

" in Diwaniya, south of Baghdad , is still 530 projects need to be more than 675 billion dinars for the implementation, according to the head of the municipalities in the provincial council , Maytham al-Zubaidi, who said , "The Council holds parliament responsibility not to refer this project to implementation."

 and waiting for about 110 strategic projects in the electricity sector , and projects in the service sectors and the development approval of the budget in the province of Maysan , where portends delayed adoption of the budget occurrence of a major crisis in the province.

 dispensed with and the local government in Maysan about 1,200 workers cleaning services due to lack of financial allocations .

 And forced Dhi Qar province to temporarily dismiss all 30 projects in the education sector and other sectors due to the delay in approving the budget and running out of the money allocated to them.

 So to wait for thousands of projects in the service sectors , education and health , in Anbar province, approving the budget to cover the expenses of these projects amounting to about 825 billion dinars.

 It is expected about 400 service project and economical in the province of Kirkuk, the money needed to implement them , after the Council approved maintaining the amount of 300 billion dinars distributed among all administrative units in Kirkuk , according to population density , for the implementation of new projects .

 Allocated the province of Babylon , projects in 28 sectors in the municipalities , telecommunications and sewage and electricity , education, higher education , health and other sectors , amounting to 730 billion dinars , waiting for approving the budget .

 expected 100 projects in Basra , in approving the budget for its implementation according to an interview with the Chairman of the Committee on the economy in the provincial council, Aqeel al-Khalidi , who explained the " Center Brief for the Iraqi Media Network, " "The orientation the new adopted budget is to reduce the number of projects to ensure their implementation , unlike last year's budget , which passed 800 project was not implemented only the little ones .

 " malfunction lack of funds 400 projects in Karbala , including the airport project " Euphrates " , and strategic projects giant , have announced maintaining bankruptcy in March 2014 , because of a failure to approve the budget by Parliament. warned committee reconstruction in the province of Nineveh cancel 30 percent of their projects if the budget was delayed .

 A member of the Nineveh provincial council Ghazwan Daoudi that "the failure to approve the budget led to disruption of dozens of projects , including water projects , electricity, sanitation , roads and bridges ."

 And caused the delay in approving the budget for the current year exposure of 230 projects, of which set strategic projects for paralysis full at Muthanna.

 Promised director of projects in the province Engineer Nadeem Abdul-Zahra to " stop work on projects greatly undermined the process of urban renaissance taking place in the province and shares actually disable development in all sectors , as well as caused by increase in the proportion of young people unemployed ."


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