Economists are advised to reduce the salaries of officials and increased investment in the 2015 budget
Economists are advised to reduce the salaries of officials and increased investment in the 2015 budget
11/11/2014
BAGHDAD / JD / .. warned a number of experts and specialists in economic and financial affairs, the probability for a severe financial crisis in the 2015 budget, through an increase in the fiscal deficit, which may reach more than $ 80 billion, according to experts, due to the continued decline in oil prices in global markets and the absence of effective solutions and strategic plans for the advancement of sectors productivity deactivated by the federal government, and advised during their talk Agency / JD / reducing the House of Representatives and the three presidencies, ministers and officials with salaries of special grades, in addition to reducing disbursements unnecessary and least important of the ministries and government departments and increase of investment projects in the budget next year, so as to minimize the risk of potential financial crisis dependencies.
Expert in financial affairs, Hadi al-Tamimi, said, Iraq on the verge of a major financial crisis, due to lower oil prices and the lack of a productive sector last offset oil losses.
He said al-Tamimi told / JD /: “The majority of industrial countries and described the oil (b wealth cursed) the fact that oil-producing countries to make it a key sector of the economy has, and therefore rely on the financial revenue in the walk matters of state without looking to other productive sectors, but oil is a variable wealth It is not fixed, either in terms of price or production and export, being subject to the entry into force in the future. ”
He added: “The Iraqi government will fall in trouble as a result of the continuing decline in oil prices to figures unexpected,” adding that “the International Monetary Fund and the Iraqi government has warned repeatedly not to rely on oil revenues to build financial state budget, but the government did not take this alarm into consideration. ”
He called on al-Tamimi, the government to “take proactive measures and radical solutions to cope with the crisis, by reducing the salaries of deputies and three presidencies, ministers and officials with special grades, whether they are agents Ministries or two years, is managers, in addition to reducing disbursements unnecessary and which are less important for the ministries and some government departments and increase investment expenditure in the 2015 budget. ”
The oil expert and engineer in the South Oil Company, Mohammad Reza, pointed out that the reasons for the drop in oil prices due to the lack of demand from Asian countries, where he now has a large inventory of oil can fill local needs for years collected in the past two years when he was growing demand for oil in the markets Global, making the jump in oil prices to more than $ 90 even reached more than $ 100 per barrel.
He Reza told / JD /: The United States has worked to increase its oil production and offered large quantities of oil in the world markets, in addition to Saudi Arabia became the production exceeds 10 million barrels per day in OPEC, making there an imbalance in the balance of trade balance of supply and demand Oil, which led to a decline in oil prices.
He continued: that oil prices will continue to decline in the next year until it reaches to below $ 80 a barrel, and probably will settle on the price (70 to 73) dollars per barrel, and this will deliver a stirring on the state budget for 2015, being dependent on the oil supplier, and therefore, according to expectations The fiscal deficit of the budget will be more than $ 80 billion, and this is a financial crisis itself, the fact that there are no alternative sources of productivity of oil revenues. ”
He stressed that “the government should take into account the drop in oil prices and its impact on the Iraqi economy in the preparation of the budget in 2015, and take all the possibilities and to develop proactive measures to address the crisis.”
The Finance Minister Hoshyar Zebari had earlier announced an increase in the fiscal deficit of the budget in 2014 to reach $ 84 billion, due to the theft of millions of dollars by organizing “Daash” military spending, prompting the government to send the budget to the parliament in the form of securities.
For his part, called for a member of the Oil and Energy Committee MP Jamal Muhammadawi, and all government ministries and institutions to support the industrial sector and the domestic product to achieve self-sufficiency and promote Iraqi economic security, to cope with the economic crisis, which he said was looming in the country.
He told Muhammadawi / JD /: “The domestic industrial product support is the best way to build the country and to achieve self-sufficiency in order to cope with the economic crisis, the resulting decline in global oil prices.”
He added that “Iraq has companies and factories to match Bmentojadtha importer, and unsurpassed in terms of quality and durability, especially the pipes which is characterized by having produced iron pipe plant in (Umm Qasr) in Basra province, productivity and factories other to support the financial budget and maximize the economic resources.”
For his part, Finance Committee member Abdul Qader Mohammed, said the committee has asked the government that does not affect the austerity food on the citizen and the staff and pensions policy, but the excess expenses and where the waste of public money for ministries and government departments such as buying cars or furniture or Ivadat.
He said Mohammed had previously told / JD / “The House of Representatives will refuse to implement this policy in the event that it would hurt the Iraqi citizens and affect their standard of living, stressing that the government should be based Ptqeil economic sectors, rather than resorting to such policies that may emerge in which economic problems To Athmd Akabaha “./ ended / 8 /
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