The government finished the budget discussion
The government finished the budget discussion
Parliament agreed with the commitment Ptoukitat approval
BAGHDAD – Alaa al – Tai – Shaima Rashid
Parliamentary Finance Committee predicted that up next year’s budget in 2017 to the House of Representatives next month, which was also confirmed by the financial advisor to the Prime Minister, the appearance of Mohammed Saleh, declaring «the completion of discussions of the law in the Council of Ministers» and that he will be sent according to the agreed timings to parliament. Completion of «discuss aspects of the budget» accompanied by disclosure of the main objects of expenditure to be financed by the budget over the next year, as it will be «the investment budget in the law 24 percent of the total spending as the aspects of government spending, according to the law, will focus on a number of key sectors over the next year, is the oil and electricity, as well as «water, health and education sectors». He said Saleh «morning»: the «cabinet resolution of the discussions on the federal budget for 2017, which is in the way of assignment to the House of Representatives for discussion and approval in accordance with constitutional timings» adding «that the most important contents of the operating budget is not to prejudice the salaries of employees and retirees and be considered first priority was underlined by the Prime Minister several times as well as maintaining some appointments in the health, education and jobs that belong to the security of Iraq’s sovereignty and security sectors ».
Financial Adviser pointed out that the call to increase oil production, according to the terms of the budget, means increased need for domestic consumption, and the need for refining, as well as the needs of power stations », pointing out that the production of the domestic petroleum of 200,000 barrels, and that the actual need of 650,000 barrels , which requires offset the shortfall, either through investment or import of oil derivatives , which in turn will be a burden on the balance of payments ».
and Saleh stressed on the need to« turn Iraq energies available both in old fields or new fields «undiscovered and undeveloped« or green fields ».
According to the financial advisor, that« the Federal budget Law for 2017 , similar to the givens of the current year budget in 2016 is difficult to predict the changes, where oil prices remain unstable and volatile and it was prepared to adopt a price of $ 35 a barrel, instead of $ 45. »
Saleh said that he «considering because the same spending ceiling in both Almoisntin (2016 and 2017) , it means that the deficit will be the « largest »is that the deficit financing resources would be« internal sources »They domestic borrowing , which will be 60 percent of the borrowing in addition to borrowing from« external sources «led by a loan of the international Monetary Fund and the World Bank, the backing and development as well as the postponement of many of the payments due until after the expiration of the agreement with the IMF, ie until after 2019 , including compensation for the Kuwait and Services Paris Club debt being negotiated.»
Furthermore, the decision of the parliamentary finance committee, Ahmed al – Haj Rashid, said the 2017 budget will come to parliament , according to Altokiet time declared the beginning of October.
Rashid said «morning»: that there are three types of oil prices , which were built according to which the federal budget for next year, the first of the price of a conservatory and the price of my optimism and the price of pessimism, and that what has been written in the budget next year , we can say that he is very realistic price.
he pointed to an increase in non – oil revenues in the budget next year, indicating that these kinds of revenue rose, and most ministries were able to increase the financial effect involves , noting that the salaries of staff cost budget up to 50 trillion dinars government is seeking to increase this number yet there is no shortage of salaries. in
turn, said a member of the Finance Committee, Hussam punitive, said his committee supports the approximate price of a barrel of oil in the budget next year, which is the nearest price to reality because of the volatility experienced by the oil markets worldwide, calling on the government to pay attention to the subject of expenses and revenues, noting that the 2017 budget may be up to parliament the end of September.
he said punitive »Sabah» that revenue according to the price «$ 35 for a barrel of oil» will not exceed 50 trillion dinars in the year.
He continued: the government should rationalize the operational and investment expenses so you can control the deficit up to 20 trillion dinars, but if I stayed the need for a higher level of spending than the 100 trillion dinars, the deficit of 35 size rises to 40 trillion dinars, which is bad, and the impact on the Iraqi economy.
among the punitive that employees ‘ salaries is a red line it is possible that the process of cutting 3 percent for the crowd and displaced persons continues, and may also reconsider the tax on the higher grades with a new system increases the state revenue, stressing the need to reducing the three presidencies and its affiliates employees either through a review of their salaries or transfer the excess to other ministries.