Abadi government seeks to provide $ 13 billion austerity and 10% of the official expenses

Abadi government seeks to provide $ 13 billion austerity and 10% of the official expenses

Posted 16/12/2014 09:03 AM

Abadi government seeks to provide 13 billion dollars austerity and 10 percent of the official expensesParliamentary Finance Committee revealed, as government efforts to address the budget deficit because of falling oil prices through a series of austerity measures that would provide at least $ 13 billion.

The Commission expects that the government resorted to dispose of 50% of the Rafidain and Rasheed bank reserves, as well as borrowing from the balance of the commercial bank and fund minors.

Finance Committee suggested that includes austerity “luxury expenses sovereign”, which said it accounts for 10% of the country’s budget.

The Finance Minister Hoshyar Zebari said that “the federal government will go to the imposition of taxes on mobile phone sales to bridge the shortfall in the budget, with the rationalization of expenditure and reduce costs.”

The draft general budget for the year 2015 Act and to address the deficit and lower oil prices, “but ruled out” the government resorting to reserves of the Central Bank, which is estimated B77 billion dollars because they are not authorized to freely dispose of this amount. ”

Turn speaking appearance of Mohammed Saleh, an economic advisor to the Prime Minister, for “a government directed to address the price decline in the quantities of oil production during a visit to meet the financial shortfall.” He reiterated that the “Committee of Five ministerial end of the budget bill in the coming days.”

He also points out that “alternatives that would resort to the government to cover the deficit in the consolidation of some resources, such as fees and taxes to get the revenue that possible raise the size of the income.”

Saleh revealed that the “tax the size of the budget year 2014 up to $ 1.5 billion,” saying it was “a few and do not constitute anything,” and predicted that “the high rate of taxes in the next budget to 2%, accounting for with 10% of the size of the gross domestic product.”

Economist warns of lead falling oil prices to the investment sector stopped and sustainable development, and saw that it “will lead to a rise in population and a decline in per capita income, as well as the impact on the building of schools and hospitals.”