Iraq is moving toward bankruptcy and expectations of the withdrawal of oil companies
Iraq is moving toward bankruptcy and expectations of the withdrawal of oil companies
05/03/2014
BAGHDAD / JD / .. criticized a number of deputies and experts in economic affairs policy of the State Finance in the distribution of federal revenue in the general budget, which some have described as “blundering”, despite the increase in fiscal revenue for the country, but the distribution process focused on consumer sectors such as security and energy with Monitoring money for a few productive sectors and investment projects, and showed their fear of exposure to the bankruptcy of Iraq during the next two years in the event of continuing this policy characterized by bad planning and management.
The report issued by the International Center for Development Studies, based in London, that the budget deficit is threatening the Iraqi oil sector of Iraq clearly. According to the report, exceeded the deficit the $ 50 billion dollars, Iraq would be at risk of bankruptcy in 2017, and Iraq will be unable to pay the salaries of its staff, and it seems that the indicators of bankruptcy looming, especially that the Iraqi government pays the salaries of its employees, including employees’ salaries region Kurdistan, on a monthly basis, where allocated 4.5 billion dollars for the month of February, did not send the salaries of March / Amaralamqubl, because the amount available is not enough for only one-third of the staff of Iraq.
Member of the Committee on Economy and Investment parliamentary MP Jassem Chenkali, said: “There is mismanagement and planning by the Iraqi government to how to manage the money in the state, where they were monitoring the amount within the budget of 2014, the oil and energy about (55 to 65) trillion dinars, which is deducted from the balance development of the regions (10%). ”
He told Chenkali / JD / to: that the rate of export of oil now ranges between (2.3) million barrels of oil to (2.5) million barrels of oil per day, while there have been statements by officials from the file of oil in the years since the federal government earlier that Iraq’s oil production will reach about 7 million barrels per day during 2014, this indicates poor planning and lack of strategic visions of the future Iraqi government.
He added that the budget is not explosive as perceived by some, The budget explosive means the existence of financial allocations equal to all the important sectors of the country, but the current budget is a budget of salaries, stressing in case continue on this fiscal policy will be presented to the country to risk bankruptcy in the coming years.
For his part, warned the decision of the Commission on oil and energy MP Mohammad Qasim Qasim, the incidence of economic problems ominous in the country, in the event of continuing its policy of state financial tainted by corruption in the distribution of federal revenue derived from oil sales.
He said Qasim told / JD /: that Iraq exchange since the past ten years, and so far about 50 million dollars for the electric power sector only, and are still ongoing power crisis in the country.
He pointed out: that the military operations currently taking place in Anbar province, cost the country millions of dollar in just two months, and this is a waste of public money, it is sure to continue when this policy will be the country into bankruptcy and economic problems.
The economic expert peace Quraishi, said: that the current political situation does not help to achieve sustainable development in the country in terms of the implementation of large projects, and this is due to the political crises that take place between the Governments of the region and the center, as well as with partners in the political process and military operations in the western region, which cost the country amounts large, these are all give a negative indicator for the future of the Iraqi economy in the event of the continuation of the current situation without the presence of political reforms in the economic and then the country.
Said Quraishi told / JD /: that the delay in approving the budget and its funds will be disbursed in mid-year hinders the chances of economic progress that must be accelerated by especially after the Iraq rolls many opportunities for advancement.
He pointed out: that the differences are differences between the Governments of the Kurdistan region and the center, particularly on oil export revenues from the region and the salaries of the Peshmerga forces, this will be a persistent problem, it would be the country each year if there were not radical solutions to address them.
The report of the International Center for Development Studies to deduct 15% of the budget allocated to investments in oil has contributed to the reduction of Iraqi exports of 2.62 million barrels per day to 2.28 million barrels per day during the past three months, what impact clearly on state revenues and plans to increase exports to more from 3.5 million barrels per day during the year 2014.
According to the report, the oil giants are unable to cope with the volatile environment of the Iraqi economy, threatening the withdrawal of it. In addition to the security factor factor highlights the financial and administrative corruption, bureaucracy and a lack of experience and the need for Iraq to infrastructure and the training of 70 thousand workers in the oil sector to reach the desired goals.
The report refers to the abolition of the company “BP” contracts to dozens of foreign contractors of the South Rumaila, and the threat of ENI to pull out of the Zubair field in Basra because of bureaucratic red tape that delayed the signing of a contract for six months. Seems to be the inability of Iraq’s budget has contributed to weakening the state’s ability to establish security, being engaged in a war in Anbar cost the Iraqi economy worth seven million dollars a day, which is exhausting burden the budget and affect the state’s ability to carry other burdens in the defense of the rest of Iraq.
It is noteworthy that announced Secretary General of the Council of Ministers Ali Mohsen Ismail Keywords, on the formation of a committee to implement a new system for the current year budget. This came during his participation in the First National Conference on handicaps legislative and administrative implementation of the investment budget in the provinces of Iraq, which was held in the province of Najaf, in coordination with the advisory board, headed by Minister in collaboration with the U.S. Agency for International Development – project progress, to view the proposed amendments to the pay rates of implementation of investment projects. / end / 8 /
dananernews.com
