Lack of planning in Iraq weakens growth
Dean said the Iraqi Institute for Economic Reform and financial expert Kamal Basri, that the fiscal revenue estimate of Iraq’s oil «is not based on the study of global markets, the lack of specialized economic unit are able to predict the future, thus determine the size of demand and oil prices.
He added that «the availability of such a study, spare Iraq the dangers of oil revenue volatility, as happened in the global financial crisis.
The visual, in a press statement that the proportion of oil revenues in the federal budget «reach 98 percent, and 96 percent for the years 2004 to 2010«, explaining that such a large volume of oil revenues «represents an imbalance and distortion in the structure of revenues, and was unable to Iraq in the past ten years, a fundamental change in the structure of production and to avoid the effects of the volatility of crude oil prices and demand in world oil markets.
He said «it was necessary to set up a specialized unit in the Ministry of expectations money to spare from falling budget revenues in cases of volatility, as happened in 2009 ‘, pointing out that «donor countries provided the initiative for the establishment of such a unit and developed but that is not possible. He believed that «approve financial allocations still lacks the economic dimensions of him, as it does not recognize the allocations according to feasibility studies for the use of public money, because the resulting however, is to establish projects of economic benefit is not necessarily the top. He suggested that the Ministry of Finance «studied a new type of financial revenue, based on the imposition of taxes on their individual share, note that global studies show the importance of this approach.
Optical detection, in a statement to Al-Hayat newspaper that Iraq «was able for the first time of allocation of 40 percent of the expenses of the investment. And hope that «grow at this pace until it reaches 70 percent, and unfortunately for« not identify these investment allocations to see how they approach or Distancing itself from the economic and social interest. He suggested «work seriously considering sharing contracts with the private sector as a strategic option, through the preparation of a special law for these contracts and training administrative unit, which holds the work, and rehabilitation.
He called for «re-examine the policy of government support 6.599 trillion dinars, which includes the ration card and support the purchase of crop rice (rice luxurious), rice normal and wheat, and corporate and social protection network and Displacement and Migration and channeled in the direction of the goals of economic and social value paramount. Having felt on this year’s budget of $ 138.43 trillion dinars, or about $ 120 billion, that Iraq «need to board or body for reconstruction can attract qualified Iraqi outstanding or to hire international companies to manage the reconstruction projects to overcome the poor rates of implementation.