47 trillion dinars and fund the budget deficit (DFI) without balances

December 14th, 2014


Iraqi attempts to address the decline in oil prices
BAGHDAD promised Shammari:

The government said it has taken a series of measures to address the rapid decline in global oil prices, saying that the current figures for the price of a barrel, which may depend on the budget in 2015 of $ 60-65 range.

At the time of the Finance Committee in the House of Representatives revealed leaks indicate a deficit in the draft budget by 47 trillion dinars, an economist from the likelihood of withdrawing foreign reserves at the central bank warned after the vacancy Development Fund for Iraq (DFI) of any amount.

According to the official spokesman for the government of Saad al-Hadithi to "New Morning" that "the Council of Ministers adopted a series of urgent measures to address the budget deficit and the global decline in oil prices."

"I was supposed to send the budget in 2015 to the House of Representatives for approval three weeks ago, but for the deterioration that took place in the global oil market," noting that "the government should make the current structure the project in line with the current circumstances."

Sabri pointed out that "oil deal with the Kurdistan region, which is to lift Iraq's exports to 3.3 million barrels per day, would fill part of the deficit," stressing "the formation of a ministerial committee to follow up the ministries and departments not associated with the Ministry revenues will finish its work soon, It was also decided to reduce consumer spending and part of the investment as part of the process of austerity. "

Government spokesman added that "a number of laws will see its way to light, including with respect to taxes and imposed on some sectors, particularly the mobile phone."

And the price of a barrel of oil in the project responded newborn "has not been determined yet, but the current figures range from $ 60-65 and are subject to adjustment in accordance with the data."

He denied the intention of the Council of Ministers of exposure to the poor and middle slides and downloaded some of the consequences of the deficit, "saying" there is no intention to reduce the salaries of employees or retirees, or social protection network, or the increase of fuel prices, and everything related to direct the lives of citizens. "

And global markets saw a new decline in oil prices during the past few hours until it reached below the $ 62 a barrel.

For his part, said the Finance Committee decision in the House of Representatives, Ahmed Hama Rashid to "New Morning" that "the draft leaked to the budget showed that the deficit by about 47 trillion dinars," adding that "the amount of the salaries of staff can not handle this amount and therefore the government will not GOES them in dealing with the current crisis. "

Rashid said that "the government will depend on other income, in the forefront of taxes," and urged that "the price of a barrel of oil commensurate with the prevailing global, and not to exaggerate cum so as not to adversely affect the Iraqi economy."

He completed Rashid, Kurdistan Alliance MP that "registered indicators, show that the barrel global oil prices remain below $ 60 until the end of June of next year."

In a related development, an economist Muhammad Akram Hassan b acknowledged "the impact of falling oil prices on the Iraqi economy, because the budget is based upon 95%."

Hassan said in an interview with "New Morning" that "the Development Fund for Iraq (DFI) Khao of any amount," and expressed his fears of the "withdrawal of foreign reserves at the central bank continued to deteriorate and if spending on the military file".

Despite his warning of "the continuation of exchange is worthwhile effect on employees' salaries," but Hassan said that "the government will not allow this, through printing money, but certain is exaggerated by the face of inflation."

And criticized the economic expert "push some institutions, particularly independent for more than a salary to the employee under the incentives title", calling for a "rationalization in the public interest," advised "by reducing the exchange rate of the Iraqi dinar to provide more of the local currency, and the issuance of investment bonds to support the economy."

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