The absence of a sovereign wealth fund negatively affect the budget

The absence of a sovereign wealth fund negatively affect the budget

1/11/2014 0:00

Private sector partnership serves the economy
Baghdad – Mostafa Hashemi – the joy of pumice
after a drop in world oil prices and direct effects on the economy of Iraq shows the need to reconsider the mechanisms of implementation of the fiscal policy which bore additional burdens without a study of the consequences, no reason to involve the private sector, which owns financial accumulations large should be employed to reduce the effects of lower oil prices on the balance of the country.
In this context, the economic expert, Dr. said the appearance of Mohammed Saleh: it was necessary to create a sovereign wealth fund over the past decade includes investments and returns supposed Bauaúdha to cover the drop in oil prices and serve as a bumper Financial correct for fluctuations in oil prices on the budget and expenditures.
He said Saleh told (morning): The government is invited to reconsider the priorities of spending policy in terms of ranking of the most significant and important, and the pressure of the many expenses in the budget and that directed the Ministry of Finance the rest of the ministries to compress expenses and non-payment large sums of money on the renewal of furniture annually, and so on.
He explained: that fiscal policies in recent years, burdened laws and obligations and financial burdens through exchange decisions promptly and without study and planning what affect the financial sustainability of the country.
He noted that world oil prices can not deteriorate to zero and less than $ 80 a barrel, explaining: The glut of oil in the world caused by the rocky fuel that added new volumes into the market, where the quality of light and good being born many products but high costs Dharrtha high oil prices, where the price of a barrel of it the rate of about $ 75, if I World oil prices for this rate, the Almntijh companies will lose their shares in the stock market.
He said: The slump in oil prices is a lesson and a test of the country that crossed by successfully as fluctuations cycle will end, adding: But it remains OPEC oil is cheaper and especially Iraq’s oil in terms of production costs, calling At the same time the government to take measures make our share of production in the oil market is well proportioned and upgrading export because Iraq is able to achieve increase its exports of crude.
Salih noted that every good and perfect opportunities to exploit the national savings of the private sector, who owns a financial accumulations missed at State so it should activate efforts with the private sector to take his chance in the economic life of Iraq through the production and absorption of unemployment and the establishment of a genuine with partnerships, adding that the apprehension and prosecution of the private sector destroyed the country’s economy which is incorrect because the private sector is not the enemy of the state. He pointed out that the national market, get rid of the national economy out of recession, but we need a flexible and easy government policies support and supports the market and is involved in it.
But a spokesman for the Oil Ministry, Assem Jihad, he saw that the preparation of the annual general budget has to be away from the changes and fluctuations and influences in the oil market, while placed The increase in revenue that got within plans and strategies to benefit from them.
Jihad said in his statement the “morning”: that this approach is aimed at stability and the development of other non-oil resources, and then eliminate what ails the budget each year due to changes in oil prices, in favor of orientations aimed at the adoption rate of 60 to 70 dollars for a barrel of crude oil in the prepared (public budget).
He stressed: that Iraq is watching the oil market closely and looking for stability in oil prices, factors and study the situation with OPEC members and exit decisions and steps aimed at stability, especially given that the volatility remains constant for affected oil prices conflicts, wars and speculation and supply and demand in the countries of the world.
He stressed the importance of the use of oil revenues in the development of other sectors and increase revenue without the continuing reliance on rents unilateral, as employed in the right places, and invested the best methods, and thus reflected on the nature of the implementation of the projects developed within the plan without delay or affected by variables.
For its part, was considered a member of the parliamentary finance committee Najiba Najib said the continuing decline in oil prices will affect the state revenues, asserting that committee and committees take into consideration the subject of lowering prices.
It noted the “morning” that the building budgets must be done in accordance with the pessimistic and not optimistic figures, in order to avoid fluctuations in global oil prices, especially that Iraq depends 95 percent on oil revenues, calling on the government to take into account this issue seriously, for attachment to Bakot citizen and the services provided to him.

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