Deputy warns of “catastrophe” if the cabinet approved the budget today with falling oil prices

Deputy warns of “catastrophe” if the cabinet approved the budget today with falling oil prices

Sunday, December 14 1 / December 2014 07:41

Deputy warns of catastrophe if the cabinet approved the budget today with falling oil prices[Baghdad-where]

Warned the MP for the National Federation of powers, which he described as “a disaster” if the Council of Ministers approved the financial budget for 2015 in the event of world oil prices continued to fall.

He is scheduled to hold a cabinet meeting on Sunday to discuss the budget, according to the announcement by Finance Minister Hoshyar Zebari said last Friday.

Mohammad al-Karbouli told all of Iraq [where] that “the delay in approving the budget of the government because of falling oil prices, with the abundance of supply in the market, especially since the countries of OPEC members, including Iraq’s exports are sold formula-term contracts and this is where originally Balasaran direct cash difference.”

He warned Karbouli of “catastrophe if the Council of Ministers approved a budget based on a certain price and then continue to drop, especially since oil prices, Iraq’s budget is unilateral source and relies heavily on oil imports,” while predicting that “the Council today agreed on a budget bill.”

He pointed out that “if the Council of Ministers approved, he must be built by a difference of $ 10 less than world market prices as a precaution in the event of continuing decline or fluctuation of prices between the time of the establishment of the budget and the approval to remedy any potential economic risk in budget prices.”

He pointed out that “the Prime Minister Haider al-Abadi told in his recent meeting last Wednesday the President of the House of Representatives Saleem al-Jubouri that it is not possible to present the budget in light of the continued decline in oil prices.”

Karbouli said, “if it has reached the price of oil to $ 45 per barrel, the government will not be able to pay even the operating expenses of the employees’ salaries because there will be a large fiscal deficit could reach $ 60 billion.”

The Finance Minister Hoshyar Zebari said yesterday that he and his ministry after reducing spending by about ten billion dollars but is still expected to arrive deficit, which was more than 47 trillion dinars [$ 40 billion] to about $ 30 billion. ”

Despite the decline in the price of oil from $ 70 a barrel, the finance minister said that “the government is adopting its spending plans for next year are still based on the approach of the price of this level as the International Monetary Fund expects the arrival of the average crude price to that level over the whole year,” .anthy 2.