The implications of lower oil .. budget deficit will exceed the 60%
The implications of lower oil .. budget deficit will exceed the 60%
01/15/2015
BAGHDAD / JD / .. in the time that the government and the House of Representatives is moving to cut costs and apply the policy of austerity in the budget of 2015, which were based on the sale of a barrel of oil at $ 60, down global oil prices to below $ 50 until the price of Iraqi oil reached $ 42 a barrel One, which form a major concern and fear among economic circles the fact that the budget deficit will exceed the 60% and this is the first time in the history of the Iraqi occur budgets.
A number of experts and specialists in economic affairs has called for an amendment to the federal budget reduced to below 100 trillion dinars with an appropriate price for oil, as well as to urge the oil companies operating in the fields of Iraq to increase oil production rates, to overcome the threats to the country’s financial crisis.
Oil expert Mohammed Abdul Ridha, said, “We live in a third world war, the oil crisis,” he said, adding that this artificial crisis by some countries to achieve certain goals and objectives.
He said Abdolreza Agency / BD /: oil prices that were in estimated at more than $ 120 over the past ten months the global markets, they landed and suddenly and unexpectedly even arrived without the $ 50, which gives the impression that the oil will continue to decline and will not due to the price normal until 2016.
The Oil Minister Adel Abdul-Mahdi said that “some of the major oil-producing countries do not want oil prices rise again, and try as much as possible by making oil prices down continuously.”
He said oil expert, said the budget in 2015 will be included in a major financial crisis by increasing the budget deficit, in the event of continued low oil prices, so the government and parliament to put solutions and treatments exceeding the crisis.
The parliamentary Finance Committee has confirmed that it is seeking to restore the public budget to the government for the purpose of making some adjustments after the continuing decline in oil prices.
A member of the committee MP Ali Mohammed told / BD /: projections indicate continued decline in oil prices until 2016, and possibly up to below $ 40, while the budget 2015 and developed based on an oil price of $ 60, which means that the fiscal deficit will exceed 60% and this is a big problem in front of us in how to bridge the budget deficit.
He added that the committee seeks to restore balance to the government for the purpose of modifying the oil price was between $ 35 to $ 40 with reduced to below 100 trillion dinars, as well as to urge the oil companies operating in the fields of Iraq to increase the production and export of oil rates, to overcome the threats to the country’s financial crisis.
The Iraqi Council of Representatives has read the first and second readings of the federal budget for 2015 of $ / end / 8 exceeded 125 trillion dinars, and the price of oil is limited to $ 60. /
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