Iraq threatened to aggravate the budget deficit over 75 billion dollars

Iraq threatened to aggravate the budget deficit over 75 billion dollars

Posted 26/09/2014 10:00 AM

Iraq threatened to aggravate the budget deficit over 75 billion dollarsCalled the International Center for Development Studies, based in the British capital London, the Iraqi government to rework the budget in 2014 is fully commensurate with the current conditions in Iraq and the difficult economic conditions of.

Fiscal deficit in this budget is a half of its value exceeded 75 billion dollars which means that Iraq is in a very difficult financial situation.

In addition, the burdens of the war waged by Iraq, which cost more than the financial income of Iraq. Cost is high for file security and spending on the armed forces in addition to the burden of sheltering the displaced whose number exceeded 1.5 million people form great pressure on this budget is to pay for shifting funds from the investment budget to finance these expenditures.

According to the Center increasing proportion of spending more than expected have arrived in public spending to 147 billion dollars, while the planned financial revenue amounted to 120 billion dollars, in addition to the high amounts of loans and advances that have increased the value of the deficit. And is funded many of the expenses through advances which exceeded 60 billion and $ 8 billion dollars overdraft while some ministries were forced to borrow from the private sector to finance some of the projects.

According to the International Center for Development Studies must re-evaluate the budget commensurate with the capabilities of Iraq’s export of oil both from northern Iraq across the Kurdistan region or from the south via the Shatt al-Arab.

The planned 2014 budget on the basis of Iraq’s export of 3.4 million barrels, while exports to Iraq did not exceed 2.5 million barrels per day, and this cost the Iraqi economy losses of up to 2.8 billion dollars a month.

The 2014 budget, according to the Center was designed based on the export of 400 thousand barrels of the Kurdistan region, while the region is not issued only 120 thousand barrels per day. This is reflected negatively on the budget where more than its fiscal deficit by 11 billion dollars.

According to the center, it is difficult to diversify sources of income and the reduction of public spending in light of turning the budget to balance consumer and crashes Alantegen agricultural and industrial in the country.

PCHR recommends quickly approve oil and gas law to resolve disputes between Baghdad and Erbil, thereby increasing the rate of production and the most efficient exploitation of the fields in excess of budget revenues.

He called the International Center for Development Studies to desist from indiscriminate lending policy or add items to strain the shoulders of the Iraqi economy, raising the rate of inflation and reduces growth rates.

The center warned of the failure to reduce the deficit, especially since it is what makes a real deficit of the Iraqi government is forced to resort to internal borrowing in the form of the issuance of treasury bonds or external borrowing. This could impose it on the Iraqi economy conditions may not be able to meet them in his plans and economic development next is what makes this economy at risk and raises the poverty rate to more than 30%.