Disagreement on external borrowing by $ 5 billion from the World bank

Disagreement on external borrowing by $ 5 billion and the central insist on spending cuts before heading to the World Bank

19/12/2014 18:03

Disagreement on external borrowing by 5 billion dollars from the World bankLong-Presse / Baghdad
Parliamentary Finance Committee revealed on Friday that the dispute over the direction of foreign borrowing continues to fall in oil prices was behind the postponement of a special meeting was scheduled for Thursday evening to discuss the budget.
He said members of the Committee on the government’s intention to borrow $ 5 billion from the International Monetary Fund, but the central bank pressed further “retrenchment” before heading for external borrowing.
The Minister of State Saman Abdullah revealed the “long”, last Wednesday, the intention of the Council of Ministers a special meeting Thursday evening to discuss the federal budget, and talked about the government directed to send the budget to Parliament before the end of this month.
In this context, Ahmed Rashid flesh, Rapporteur of the Parliamentary Finance Committee, says that “the Council of Ministers has postponed its planned special session Thursday to Monday and will be devoted to the discussion of the budget in 2015,” attributing it to “the continued volatility in global oil prices and the rise in the deficit ratio to 36 trillion dinars.”
He MP Rashid, in an interview for the “long”, that “the government has conducted four amendments to the draft general budget,” pointing out that “public expenditures amounted to in the last draft of 148.274 trillion dinars.”
Explains parliamentary member of the Finance that “the overall size of the operational expenses amounted to 103.370 trillion while capital expenditures amounted to 44.904 trillion while the budget deficit reached 36.428 trillion dinars.”
Reveals Kurdish MP for “government’s intentions to address the large proportion of the deficit, due to lower oil prices, through the use of internal and external borrowing, as well as increased oil production associated with reduced overhead.”
Attention MP Ahmed Rashid that “oil revenues in the budget of 2015 is estimated B98.311 trillion dinars, while non-oil revenues are estimated B13.535 trillion dinars and come this revenue of currencies, selling and renting real estate state and religious tourism administration tax, profits of public companies Kalmsafa and some laboratories and companies Winning self-financing. ”
He said a member of the Finance Committee in the House of Representatives that “Iraqi oil is sold, during the last few hours, dollars with 53 per barrel,” stressing that this level of prices, “one of the real reasons that prompted the government to not to discuss the budget on Thursday, adding to the pressures of the Central Bank Iraq’s need to address the deficit before resorting to external borrowing. ”
Explains MP Rashid that “the International Monetary Fund, which the federal government intends to borrow from him, he has the conditions for lending to states not to exceed the budget deficit in the country ceiling of 15 trillion dinars,” pointing out that “the Iraqi government plans to borrow $ 5 billion from the International Monetary Fund.”
On the final accounts for the financial year 2014, says MP “on the Ministry of Finance to prepare the accounts on the expenditure, government expenditure and submitted to the House of Representatives after the adoption of the general budget,” MP strongly denied “Parliament received the final accounts for the years 2012, 2013 and 2014″.
In the same context, Jabbar Abdul Khaliq, the other member of the Parliamentary Finance Committee asserts, that “the government is moving toward retrenchment to address the projected deficit that accompanied the decline in world oil prices.”
The Committee on Parliamentary Energy confirmed the “long”, earlier this month, and the presence of multiple government measures to avoid any potential drop in oil prices to under $ 50.
The Commission did not rule out, then, asylum cash reserves at the central bank or borrow from private banks. She described a decline in prices to around $ 40 as a “global catastrophe.”
MP says Jabbar Abdul Khaliq, “long”, “The draft budget, which was discussed by the government a month before the project was containing a hundred thousand degrees and careers of 50% to the Ministry of Defence exclusively, and the remainder to the Ministry of Health, Interior, and the rest of the provinces,” and believed that “the cut grades or increase depends on the government amendments. ”
He added that “it is expected to fill the budget is to increase oil exports to overcome the drop in oil prices deficit processors,” likely to “export capacity up oil at about 3.3 million barrels a day.”