Parliament warns of bankruptcy within two months if the government did not pass a budget
Parliament warns of bankruptcy within two months if the government did not pass a budget
02.12.2014 (0:01 pm)
Baghdad / Mohammad Sabah
Called committees of financial and economic situation in Parliament, on Tuesday, to deal seriously with the warnings of the International Monetary Fund on the expansion of government spending in Iraq, and its implications for monetary reserves.
Chairman of the Finance Committee stressed the need to reconsider the government spending plans, saying that the annual increase will lead to a distortion general budget and harm our resources of oil. Although he described the warnings of the International Monetary b “mere expectations,” said the government threatened with bankruptcy and depletion of reserves financial within 3 months if they do not pass the budget.
Meanwhile, a predicted member of the Economic Commission to see oil prices drop significantly in 2014 due to the return of Iranian oil to markets , stressing that the budget lacks economic vision and clear, because the supervision of people “non-professionals”, warning of prejudice reserve Iraq in the trunk of my father’s F-any or central bank money.
was the International Monetary Fund warned the Iraqi government to proceed with the implementation of its plans the spending for the year 2014, stressing It will face inflation standard would lead to the depletion of the country’s reserves of hard currency. “He of the International Fund to the need for Iraq because oil is priced at $ 105 at the very least to be able to balance the budget.
Commenting on that, says MP Haider al-Abadi, head of the parliamentary Finance Committee, “The evaluation of the International Monetary Fund to the government’s plans the spending is just expectations may believe has been incredible,” returned calculating the budget on the basis of 90 dollars per barrel of oil as “not too bad.”
added al-Abadi, the “long” yesterday, said, “but in the case of a collapse in the global economy then it is radically different, “and believed that” the reduction of the price calculation of barrels of oil in the budget needs to deductions many of the expenses of the government, “stressing that” you can not cut the salaries of employees nor the investment budget or allocations of petrodollars. ”
continued Chairman Parliamentary Finance Committee “agreed with IMF report in terms of the need to reduce expenses and control because our oil is limited production and even export and hence the expansion costs will lead to a distortion of the budget. “and warned that” failure to pass the budget would lead to the depletion of reserves the government during the months of May or June. ”
to that described by Last in the Finance Committee, the IMF report on government spending, as a “logical”, arguing that “all the accounts of the Iraqi state and its resources dependent on oil revenues.”
said Rep. Dler Abdelkader told the “term”, that “restore Iran to its international standing and extraction of coal in large quantities in the U.S. will affect the price of oil, “he said, adding:” I expect a decline in oil prices in global markets, which will impact on the federal budget. ”
saw Kader said that “Iraq can not fulfill the size of prices and quantities of oil estimated in the budget,” likely to “face Oil revenues in the coming year a large deficit, “stressing” the need to address this deficit before approving the budget in 2014 in order to avoid any economic disaster. ”
and continued a member of the Finance Committee, saying “if it was the budget deficit of 50%, it required the state to declare bankruptcy,” But he said, “ruled out the slump in oil prices below the $ 90.” For his part, the Attorney Mahma Khalil, a member of the parliamentary Economic Committee, said that “the budget estimate did not take the economic developments in the euro area and the Southeast Asian and Iranian relations with the 5 +1 nuclear file The owner of a breakthrough and production of OPEC oil. ”
Khelil said, in an interview for the “long”, saying that “economic vision that prepared the federal budget was foggy and unclear and did not put specialists and concerned,” adding that it “is not a budget, but are just allocations” .
warned member of the Kurdistan Alliance, “exceeded the government or any other party on the reserve fund in Iraq DFI or the central bank,” expressing his fear that “the decline in oil prices leads to expansion of the deficit significantly more than it is.”
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