Specialists: Modify the price of oil will increase in the budget deficit
Specialists: Modify the price of oil will increase in the budget deficit
09/17/2016
BAGHDAD / JD / .. warned a number of experts and Alchtchin in the financial and economic affairs of the amendment set the price of oil in the 2017 budget amounting to $ 35 a barrel, because it will increase the budget deficit, stressing that the current price is good and appropriate to what is going through oil price fluctuations and lack of stability.
He says economic expert Abdul Hassan al-Shammari, the exact current price to balance in 2017 is a good and a real price of oil to the reality experienced by the world, which is experiencing oil price instability and a large fluctuation tend to the continuous decline and this means that identification is optimistic its price too much in the budget will increase the fiscal deficit .
He said al-Shammari told / KD / It’s not the government’s interest to determine the price of the highest in the budget because it will lead to problems with making it a very difficult position in terms of payment of expenses and increasing debt that is difficult to repay in the future, calling to maintain the current price in order to avoid any problems that may occur as a result of reduced oil prices, especially since the international reports indicate that the oil price may continue to decline during the next two years.
For its part, the parliamentary finance committee confirmed, the Finance Ministry plans to change the price of a barrel of oil in the general financial state budget for 2017 in agreement with the International Monetary Fund, to anticipate a possible deal for the members of the Organization of Petroleum Exporting Countries (OPEC) at the end of September this.
A member of the committee MP Ahmad Rashid told / JD /, that “change the price of a barrel of oil in the budget of 2017, came a proactive step by the government to the efforts of OPEC to freeze production, but we see that the price removed is the best current circumstance and if we get a surplus Baward state possible that there will be a supplementary budget and we want to do so.
And between, he said that “raising the price of a barrel of oil to $ 43 would increase the budget deficit, being optimistic, but the previous price of $ 35 is more conservative, and as long as oil is the main supplier of Iraq’s budget, the price of giving my optimism does not serve the general budget.”
He pointed Haj to, “The Finance Committee discussed this issue and we raised the reserve price as long as the oil price is stable and the majority of producing countries is currently put this price (Conservative)” likely “it will probably rise in oil prices if he got an agreement of the members of OPEC, but otherwise, the prices dropping so it is not guaranteed. ”
The regular consultations between Iraq and the International Monetary Fund, which took place in Amman, Jordan, and private to review the implementation of the Stand-By program, and noted the Ministry of Finance to the talks reviewed the draft federal budget law for 2017 and was agreed to calculate the price of a barrel of oil at $ 43 instead of the price of the proposed 35 in the draft budget and vCard export crude oil, 3.6 million barrels per day.
The Ministry of Finance has announced that, earlier, Iraq’s agreement and the International Monetary Fund at the expense of the price of a barrel of oil at $ 43 instead of the proposed price of 35 in the draft 2017 budget.
It is scheduled to hold an informal meeting in Algeria on the sidelines of the International Energy Forum, which will be held between 26 and 28 September and is expected to seek through it to revive a global agreement to install Alanteg.anthy / 8 / levels
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