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Economist for «New Morning»: the budget revenues will decline by 25 percent
Called for the overhaul of the tax, banking and customs devices
Baghdad Ihsan Naji:
Economist predicted that Iraq is facing great difficulties if oil prices remain at current levels, noting that some estimates available suggest that Iraq achieve a balance between revenue and expenditure of the general budget can not be at a price lower than $ 110 per barrel of crude oil.
The economist said Akram Mohammed Hassan singled out by the «New Morning», the «Oil revenues constitute approximately 95% of revenue, so the drop in prices of 25% indicates that the general budget revenues would fall by the same amount.»
Hassan added that «to meet the challenges of this troubled reality and dangerous, on the government to take urgent measures to rationalize public expenditure and the reduction of government consumption is futile, by, in addition to working to diversify the sources of financing the public budget».
He went on to say, that the success of these measures is required OPEN overhaul and serious at the level of the tax and banking systems and customs in the Iraqi state ».
He stressed that «the fall in oil prices, a negative effect on the economic and financial situation in the country».
And increased Hassan, that «it is clear that the main reason for the decline in global oil prices is mainly linked not to the prevailing balance in the international oil market, which is witnessing the presence of a surplus in production is currently estimated at two million barrels of crude oil».
He continued, that «it is not expected to occur fast enough and an increase in global demand for oil, which would change the price trends upward».
[rtl] [/rtl]And that «the continuing economic recession in the European Union, the US economy and low growth rates, and the relative decline in the Chinese economy growth rates, makes this increase is needed to check for more time.»
The past three months, the decline in crude oil prices rapidly, and exceeded A decrease in the price per barrel of crude oil 25% during this period to reach the level of $ 80 or below, compared with its level, which stood at around $ 115 at the end of the month of June.
Hassan pointed out that the «current decline in oil prices does not constitute a major concern for some producers in« OPEC »especially Saudi Arabia, which produce nearly 30% of the total OPEC production».
He explained that «Saudi Arabia has recently Bzadh its crude oil production of 9.3 million barrels per day to 9.7 barrels per day, as well as the International Monetary Fund estimates that suggest that Saudi Arabia may not achieve a balance between revenues and expenditures of the general budget at a price lower than the $ 91 a barrel, taking into account the fact that Saudi Arabia's foreign reserves currently exceed $ 750 billion, which allows it to withstand the results of the decline witnessed in oil prices ».
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Called for the overhaul of the tax, banking and customs devices
Baghdad Ihsan Naji:
Economist predicted that Iraq is facing great difficulties if oil prices remain at current levels, noting that some estimates available suggest that Iraq achieve a balance between revenue and expenditure of the general budget can not be at a price lower than $ 110 per barrel of crude oil.
The economist said Akram Mohammed Hassan singled out by the «New Morning», the «Oil revenues constitute approximately 95% of revenue, so the drop in prices of 25% indicates that the general budget revenues would fall by the same amount.»
Hassan added that «to meet the challenges of this troubled reality and dangerous, on the government to take urgent measures to rationalize public expenditure and the reduction of government consumption is futile, by, in addition to working to diversify the sources of financing the public budget».
He went on to say, that the success of these measures is required OPEN overhaul and serious at the level of the tax and banking systems and customs in the Iraqi state ».
He stressed that «the fall in oil prices, a negative effect on the economic and financial situation in the country».
And increased Hassan, that «it is clear that the main reason for the decline in global oil prices is mainly linked not to the prevailing balance in the international oil market, which is witnessing the presence of a surplus in production is currently estimated at two million barrels of crude oil».
He continued, that «it is not expected to occur fast enough and an increase in global demand for oil, which would change the price trends upward».
[rtl] [/rtl]And that «the continuing economic recession in the European Union, the US economy and low growth rates, and the relative decline in the Chinese economy growth rates, makes this increase is needed to check for more time.»
The past three months, the decline in crude oil prices rapidly, and exceeded A decrease in the price per barrel of crude oil 25% during this period to reach the level of $ 80 or below, compared with its level, which stood at around $ 115 at the end of the month of June.
Hassan pointed out that the «current decline in oil prices does not constitute a major concern for some producers in« OPEC »especially Saudi Arabia, which produce nearly 30% of the total OPEC production».
He explained that «Saudi Arabia has recently Bzadh its crude oil production of 9.3 million barrels per day to 9.7 barrels per day, as well as the International Monetary Fund estimates that suggest that Saudi Arabia may not achieve a balance between revenues and expenditures of the general budget at a price lower than the $ 91 a barrel, taking into account the fact that Saudi Arabia's foreign reserves currently exceed $ 750 billion, which allows it to withstand the results of the decline witnessed in oil prices ».
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