Abadi speaks of “a new financial thought” to balance in 2015

Cancellation of billions of dollars in expenses and consultant Abadi speaks of “a new financial thought” to balance in 2015

11/22/2014 (00:01 pm)

BAGHDAD / Mohammad Sabah

Prime Minister for Economic Affairs Advisor to detect the appearance of Mohammed Saleh said that the government would begin discussing the draft budget law of 2015 the beginning of the month of December next to set it up in proportion to the conditions of security and economic challenges.
He said the government will go towards reducing its current expenditures that were costing the federal budget each year nearly 45 billion dollars. He noted that the 2014 budget data will be submitted to parliament with the budget next year.
To the Parliamentary Legal Committee confirmed that the government has decided to calculate the price of a barrel of oil to $ 80 in the next budget, warning of talk about higher prices amid oil market crisis.
He says the appearance of Mohammed Saleh, Economic Adviser to the Prime Minister, during a meeting with the “long”, “The Ministry of Finance was in the process some time ago to prepare a draft budget law in 2015 in accordance with rules prescribed by the financial management and public debt No. 95 of 2004, which defines the concepts of preparing any budget. ”
Article (6) First of public debt law, the Ministry of Finance to prepare the federal budget on economic development plans and the pursuit of macroeconomic stability and economic policy and applicable laws and regulations, taking into account the desire required to ensure the strengthening of the financial situation of Iraq, and to reduce volatility in government spending, and the completion of the accumulation of gross income taking into account in particular the wise and moderate forecasts for the prices of petroleum and petroleum products, tax and customs revenues.
And adds the benefit of that “next year’s budget heading towards limbering and reduce ongoing expenses and some of the projects that the financial burden of a big raise with some other exports outside the oil sector and to address the projected shortfall.”
And explain the economist and adviser reasons for delay in the adoption of the budget year 2015 in the Council of Ministers to “the presence of security conditions the problems experienced by Iraq,” stressing “the existence of emergency conditions faced approve the federal budget for next year and the latter end of them falling world oil prices and determine the amount of oil produced and exported as well as the challenges terrorism. ”
Saleh believes that “the preparation of the next year’s budget will serve as a financial re-thought in Iraq under difficult circumstances and face the challenges of terrorism and the decline in oil prices.”
Economic Adviser to the Prime Minister and draws out that “the Ministry of Finance did not specify the oil now to be adopted by next year’s budget as well as the amount of oil exported prices,” likely “turn the grades for the current year to the next budget.”
The oil minister Adel Abdul Mahdi likely, while hosted in the House of Representatives, is expected to be calculated in the price of oil in the construction budget for 2015 by about $ 80 per barrel. Abdul-Mahdi, and linking the improved performance of the Iraqi economy in the correct orientation of financial resources through pressure unnecessary expenses.
Notes in favor of that “wages and salaries cost the state budget of nearly $ 45 billion a year as well as the ongoing consumer spending, Kalnthreyat, cars and deputations, and other services, and that up to 45 billion dollars.”
And expresses its regret economist fiscal policy followed during the last years of the ongoing expenses acted obscene and large. He believes that “the expansion of the financial budgets during the financial period was unreasonable expansion, which included consumer ongoing expenses that strained budgets, large sums of money.”
Notes in favor of that “recent agreement with the Kurdistan region will address many of the budget problems that are related to the lifting of the production, export and marketing of oil to world markets,” expected to “be discussed the general budget in the next month within the Council of Ministers and then sent to the House of Representatives.”
The Federal Government and the Government of Iraq’s Kurdistan region and reached an agreement provides for the federal government to transfer $ 500 million in exchange for a commitment to Erbil 150 thousand barrels of crude oil per day at the disposal of the federal government.
But economic adviser to Prime Minister al-Abadi believes that “drawing the federal budget is dependent on the completion of agreements with the Kurdistan Regional Government and oil processing differences fully.”
He suggested that “the investment budget will focus on the task of investment projects and re-projects lagging,” expected to “be the budget year 2014 data with next year’s budget submission to the House of Representatives.”
In the same vein, it was revealed Secretary Baker, MP for the mass change of Kurdistan, for “there is no intention at the federal government calculates the price of oil in the budget next year B80dolara.”
Baker shows the “long” “The Cabinet will send the budget year 2015 to Parliament before the end of the current year for legislation on time”, adding that “the trend is to reduce the consumption expenditure in order to control the projected budget deficit ratio.” Explains the legal committee member, said “the reasons for the calculation or the adoption of a barrel of oil price of $ 80 is to cover the deficit and filled through the equation between expenditure and income,” but acknowledges that “the adoption of this price is risky because of the decline in world oil prices.”

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