Fears of increasing the federal budget deficit to 50 billion dollars
Fears of increasing the federal budget deficit to 50 billion dollars
02/18/2014
BAGHDAD / JD / .. A number of MPs and economists fear of increasing federal budget deficit public to (50) billion dollars, as a result of the adoption of the pension law and allocations petro $ 5, which would be about 7 trillion dinars, and the allocation of (5) trillion dinars covered by amending the law of political prisoners, in addition to the approval of the Unified Retirement Law, which included a significant increase salaries of retirees.
Experts warned during their talk Agency / JD / Balahtiat use of cash of foreign currency to the Central Bank to fill the shortfall in the budget, he is sovereign balance can not be manipulated.
Economic expert, Dr. Mohammad al-Hassani, said: “The total amount of the public budget is not enough to meet the claims by either local governments or the people, especially after the claims of oil-producing provinces amounts of petro $ 5 and approval of the pension law in its current form, explaining that the amounts of petro $ 5 and pensions as well as Other allocations for added laws embarked linked to the budget deficit will make the current year budget of $ 50 billion. ”
He said al-Hassani in his speech told / JD /: “The government will be torn where will face two problems at one time two delay in approving the budget in the House of Representatives and how to bridge the deficit, which will create cover the costs of retirees and prisoners Rafha and amounts of petro-five dollars,” adding that ” The government will look for a way out of what faced a financial crisis will not find in this case, but borrowing from other countries or from the International Monetary Fund or the World Bank to cover the deficit, and therefore weigh the shoulders of the state debt. ”
For its part, warned a member of the Committee of Economy and Investment Attorney Nora Albjara, increase federal budget deficit to a record that can not be repaid by the federal government, especially after putting the budget under the price of a barrel of oil at 90 dollars and the rate of export (3) million and (400) thousand barrels of oil per day, which is a likely decline in world oil prices as well as the inability of Iraq to reach export rates prescribed in the budget.
She Albjara in her agency / JD /: that there are new projects were added to the budget and that need a lot of money, especially after the adoption of the Unified Retirement Law, which included a significant increase of the salaries of more than four million retired, in addition to the project petro dollars, which has been allocated amounts estimated (7) trillion dinars, as well as the law of political prisoners has allocated funds estimated at 5 trillion dinars.
It continued: “Therefore, the estimated deficit in the current budget will increase by (35%), warning of resorting to central bank reserves to meet the shortfall.”
As a member of the Finance Committee MP Dler capable, he said that the fiscal deficit of the general budget will increase to more Mamajtt him of 30 trillion dinars, because public revenues amounted to 139.6 trillion dinars, while expenditures amounted to 170 trillion, added her projects Unified Retirement Law and political prisoners, and the allocation of petro dollars.
He is able to Agency / JD /: that his committee is working to develop treatments for how to bridge the fiscal deficit in the budget, you are likely through loans or financial transfers some of the projects or reduce allocations to each other.
He Kurdistan Alliance MP said that “the inflation rate amounted to 3% after the increase in real estate prices and commodities, while the poverty rate was 19% in the budget, and this is very scary number, which means the presence of 6.3 million Iraqis living below the poverty line.”
The House of Representatives had voted in the last month, a majority on the Unified Retirement Law, which included a significant increase salaried retirees.
The federal government has allocated project petro dollars within the budget of the year 2014 on the basis of granting one dollar per barrel sold to the oil-producing provinces, but after the claims of the blocks and the public pressure prompted the government to increase it to $ 5 per barrel of product.
Has sent the Council of Ministers the general budget for the year 2014 to the House of Representatives last January, announced the Minister of Finance Agency purity of net debt as reducing the amount of the general budget of 174 trillion dinars to 164 trillion dinars, for the purpose of reducing the fiscal deficit to 23 trillion dinars.
And put the federal budget for the year 2014 based on the sale price of a barrel of oil at 90 dollars in the global markets, and the rate of export of three million and 400 thousand barrels per day. / End / 8 /
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