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Abdel Basset al-Sabri reviews across (Orient) financial management problems in Iraq: all budgets recognizes the deficit and ending with a surplus
Orient - special:
Posted 25/11/2014 04:29 PM
The President of the Board of Supreme Audit former Dr Abdul Basit Turki newborn errors accompanied planning to put fiscal balances in Iraq and Aaqrarha.oukal newborn in an extended essay singled out by the package (Orient) that "to continue in the planning of the budget deficit and approval represents a violation of the traditional rules of the general budget, which calls for targeting balancing the budget as a boy and their effects on the economy and society. "Noting that "in practice (if we exclude the advances that have not been resolved), all public budgets were finished with a surplus at the end of the year except 2009 budget" .ovsal Sabri said: "The financial management in Iraq to consider the remaining financial favorites in the Development Fund for Iraq (DFI) of oil revenues as free resources that can be disposed of in the following year without taking into account the obligations of the general budget (Kasalaf for example) to cover by these favorites, and if the financial management of the commitment of twice about one dollar circular cash Kvdilh from the previous year. "he added, "Although the risk factor II (use recycled) much lower than Group I (continuous planning deficit), but it reveals a lack of sufficient knowledge and understanding of the wrong resources and the concept of the general budget and the role of tools.
Full text
D. Abdul Basit Turki Saeed
The former head of the Federal Office of Financial Supervision
Became the media in recent days, replete with statements of officials and non-officials for panic in a deficit in the budget. Was this a surprise deficit? What is the justification? Is that the decline in revenue is a reason for this or is it that there are other reasons behind it? Is the budget will be approved in 2014 or not? The need for that?
Starting must say that confront and resolve any problem successfully is first Bchkhisa statement sources and limits of their influence and desired outcomes of the solution according to the priorities of the concerns of those taken in the decision by reference to the questions above may be noted that more than one point it had previously predicted the occurrence of such a deficit, has himself Bureau Federal financial control in more than one occasion, including the report of the Bureau for the final accounts for the year 2010 sent to the Ministry of Finance and the House of Representatives and the Council of Ministers, was the budget planning is always a deficit, where the increase expenditure on public revenues, and it depends on cover the deficit on the expected increase returns oil (rise in prices or production, or both) and the circular of the remaining financial resources are not being used from the budget (projects) in previous years, this was the framework of the mechanism will inevitably lead to an actual deficit for the later to occur.
Problematic in financial administration in Iraq beyond the occupation that its role was limited to financing role and as a fund to feed what meets the demands of public authorities of spending, has played a cornucopia of cash resulting from oil exports, its role in the adequacy of insurance this task, even legislative authorities had practiced for more than a once this role in increasing spending and open the doors of the exchange in addition to a proposed draft general budget, which provides it from the Ministry of Finance through the Council of Ministers, for reasons best of what is said about it satisfies electoral purposes.
It is therefore de facto (if we exclude the advances that have not been resolved), all public budgets were finished with a surplus at the end of the year except for the 2009 budget as the following table shows:
Table (1)
Revenues and expenditures planned and actual deficit in the state budget (billion dinars)
Year revenue expenditure planned surplus or deficit actual deficit
2005 40435 30831 (7023) 9604 surplus
2006 49055 37494 (5571) 11561 surplus
2007 54965 39308 (9663) 15 657 surplus
2008 80641 67277 (9086) 13364 surplus
2009 55243 55589 (18757) deficit (346)
2010 70178 70134 (22922) surplus 44
2011 103989 78758 (15727) 25231 surplus
The first objection is that this continue in the planning of the budget deficit and the approval represents a violation of the traditional rules of the general budget, which calls for targeting to achieve a balance between a boy budget and their impact on the economy and society, and that this trend to increase spending scheme will inevitably lead to a lack of rationalization in spending, given that the general budget is a vacation for the disposal of public money, and the continued expansion of the planned expenditure is a call for more effective spending, and on this basis the general budget to rise Mtsahbh estimates continued with every increase in the financial revenues of oil exports, and the low level of actual spending on development projects for the investment budget.
Table (2)
The annual rate of implementation of the investment budget
Year%
200 512
200 614
200 744
200 849
200 962
201 060
201 145
201 254 (approximate)
Financial Management also continued to consider the remaining financial favorites in the Development Fund for Iraq (DFI) of oil revenues as free resources that can be disposed of in the following year without taking into account the obligations of the general budget (Kasalaf for example) to cover by these favorites. As if the financial commitment of the administration to about twice per dollar cash Kvdilh circular from the previous year.
Although the second factor risk (use recycled), much less than the first factor (continuous planning for the deficit), but it reveals a lack of sufficient knowledge and understanding of the wrong resources and the concept of the general budget and the role of their tools.
In the presence of a fiscal policy and the style of acting with public money. I was expecting the presence of cycle (economic) financial crisis converge durations occur constantly, where the first period from 2004 to 2008 for five years and then the crisis in 2009, and the second period for a period of four years for the period 2010-2014 to occur in 2015 and for the period from 2016 to 2019 for three years, but the circumstance of security, political instability and the end of 2013 and the subsequent precipitated the emergence of the crisis in the second half of 2014, where were these developments sufficient to justify more spending, as is the case in the crises of various economies, where the face of crisis, accompanied by exceptional tunnels (albeit to varying degrees) and this is what actually happened in Iraq.
Already hold a meeting of the Constitutional Hall of the previous session of the House of Representatives before the elections in the presence of Messrs president and two deputies, Vice-President of the Council of Ministers as well as the delegation of the Kurdistan region concerned ministers and heads of political blocs in the House of Representatives, and then asked clearly be viewed seriously and objectively to the problem of the budget deficit and this (planning) is not rational to spend whos more public spending, and not to leave the current session of further problems for the subsequent session of the Council of Representatives.
Although this has not been a lot of satisfaction from the audience, because what was done is only willing to discuss the export of oil from the Kurdistan region, however, but partial view of the state of the problem does not only lead to a failure to resolve and sometimes even increases the complexity and this is what happened.
What to do now? How should address the status of the 2014 budget and the way to solve the financial Ashkaladtha ??
The objective view of the treatment had to be viewed away from the political exploitation after he led the political pressure when developing and approving the draft budget to where we are and that leaves the manipulation of financial assignments Kersh layers, slides and Almnatkiet.
Although the crisis is not Pehinh but at the same time appropriate to review the entire process of economic management and use of resources rationally. There is a deficit in the state budget resources, but the problem lies not in the size of the deficit, but the reasons for his appearance and ways to be seen, for example, some now believe that the problematic 2014 budget treatment is not to be issued confirming this error continued to look at the problem, and about what progress, the development of processors for the whole of this dilemma comes through the following proposal:
1.ajb the issuance of the general budget for 2014, the law is technically the law and legislation, not orders spending, actual spending is subject to the powers of the various departments, the budget (as mentioned above) is a vacation to collect public money and use it and not fund, and when we talk about it now and we are in the end of 2014, the actual funding has been public units and therefore this spending should be framed under the Act issued Kan final accounts of the state, Vasalahih granted to the Minister of Finance to fund units disbursement rate of 1/12 of the actual expenditures for the previous year is an exception for non-issuance of the budget in the timing treatment and no reason not originally issued, and includes the issuance of the budget law disclosure of the details of allocations and the amounts actually spent during the year.
2. In light of the current technical progress of the work of the banking system, the resort to a unified cash account to the accounts of government units (there is a committee formed for this purpose by the Central Bank and Ministry of Finance and the General Secretariat of the Council of Ministers to achieve this at the time) will provide high flexibility for the government to act on cash return them, which exceed the amount of 15 trillion dinars in most cases pessimistic estimate.
3.an issued the General Budget Law year, including substance empowers the Minister of Finance the authority to issue government bonds used to cover expected to occur actual deficit, as otherwise there is no validity to the one in the issuance of these bonds, but a separate law, and do not install this paragraph leads to rely mainly on the deficit for external borrowing and more debt and exposure to a foreigner.
4.an coincides issuance of the budget for the current year and the next year at least with Cancel and address fragmentation witnessed sovereign revenues over the past years and return to feed expenses centrally - especially after the apparent failure to use efficient in meeting the needs of citizens in the beneficiary provinces.
5.kiem Ministry of Planning and identification to be implemented in Iraq, according to studies of efficiency, necessity and in exchange, and technical strategic projects are focusing on infrastructure, and prioritizing development projects, including the services of in accordance with the standard of weights prepared by the ministry which ensure the equitable distribution of services among citizens and leave maker decision to choose between these priorities and be included in the medium-term development plan, and use any actual increase in oil export revenues to cover these projects exclusively impetus to the peace order of these projects in the approved plan and stay away permanently from thinking to issue deficit planned budget or the budget supplemental to use this revenue.
This is what I think an important first step towards the development of thinking in a realistic step to develop to overcome the crisis for future strategy.
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Orient - special:
Posted 25/11/2014 04:29 PM
The President of the Board of Supreme Audit former Dr Abdul Basit Turki newborn errors accompanied planning to put fiscal balances in Iraq and Aaqrarha.oukal newborn in an extended essay singled out by the package (Orient) that "to continue in the planning of the budget deficit and approval represents a violation of the traditional rules of the general budget, which calls for targeting balancing the budget as a boy and their effects on the economy and society. "Noting that "in practice (if we exclude the advances that have not been resolved), all public budgets were finished with a surplus at the end of the year except 2009 budget" .ovsal Sabri said: "The financial management in Iraq to consider the remaining financial favorites in the Development Fund for Iraq (DFI) of oil revenues as free resources that can be disposed of in the following year without taking into account the obligations of the general budget (Kasalaf for example) to cover by these favorites, and if the financial management of the commitment of twice about one dollar circular cash Kvdilh from the previous year. "he added, "Although the risk factor II (use recycled) much lower than Group I (continuous planning deficit), but it reveals a lack of sufficient knowledge and understanding of the wrong resources and the concept of the general budget and the role of tools.
Full text
D. Abdul Basit Turki Saeed
The former head of the Federal Office of Financial Supervision
Became the media in recent days, replete with statements of officials and non-officials for panic in a deficit in the budget. Was this a surprise deficit? What is the justification? Is that the decline in revenue is a reason for this or is it that there are other reasons behind it? Is the budget will be approved in 2014 or not? The need for that?
Starting must say that confront and resolve any problem successfully is first Bchkhisa statement sources and limits of their influence and desired outcomes of the solution according to the priorities of the concerns of those taken in the decision by reference to the questions above may be noted that more than one point it had previously predicted the occurrence of such a deficit, has himself Bureau Federal financial control in more than one occasion, including the report of the Bureau for the final accounts for the year 2010 sent to the Ministry of Finance and the House of Representatives and the Council of Ministers, was the budget planning is always a deficit, where the increase expenditure on public revenues, and it depends on cover the deficit on the expected increase returns oil (rise in prices or production, or both) and the circular of the remaining financial resources are not being used from the budget (projects) in previous years, this was the framework of the mechanism will inevitably lead to an actual deficit for the later to occur.
Problematic in financial administration in Iraq beyond the occupation that its role was limited to financing role and as a fund to feed what meets the demands of public authorities of spending, has played a cornucopia of cash resulting from oil exports, its role in the adequacy of insurance this task, even legislative authorities had practiced for more than a once this role in increasing spending and open the doors of the exchange in addition to a proposed draft general budget, which provides it from the Ministry of Finance through the Council of Ministers, for reasons best of what is said about it satisfies electoral purposes.
It is therefore de facto (if we exclude the advances that have not been resolved), all public budgets were finished with a surplus at the end of the year except for the 2009 budget as the following table shows:
Table (1)
Revenues and expenditures planned and actual deficit in the state budget (billion dinars)
Year revenue expenditure planned surplus or deficit actual deficit
2005 40435 30831 (7023) 9604 surplus
2006 49055 37494 (5571) 11561 surplus
2007 54965 39308 (9663) 15 657 surplus
2008 80641 67277 (9086) 13364 surplus
2009 55243 55589 (18757) deficit (346)
2010 70178 70134 (22922) surplus 44
2011 103989 78758 (15727) 25231 surplus
The first objection is that this continue in the planning of the budget deficit and the approval represents a violation of the traditional rules of the general budget, which calls for targeting to achieve a balance between a boy budget and their impact on the economy and society, and that this trend to increase spending scheme will inevitably lead to a lack of rationalization in spending, given that the general budget is a vacation for the disposal of public money, and the continued expansion of the planned expenditure is a call for more effective spending, and on this basis the general budget to rise Mtsahbh estimates continued with every increase in the financial revenues of oil exports, and the low level of actual spending on development projects for the investment budget.
Table (2)
The annual rate of implementation of the investment budget
Year%
200 512
200 614
200 744
200 849
200 962
201 060
201 145
201 254 (approximate)
Financial Management also continued to consider the remaining financial favorites in the Development Fund for Iraq (DFI) of oil revenues as free resources that can be disposed of in the following year without taking into account the obligations of the general budget (Kasalaf for example) to cover by these favorites. As if the financial commitment of the administration to about twice per dollar cash Kvdilh circular from the previous year.
Although the second factor risk (use recycled), much less than the first factor (continuous planning for the deficit), but it reveals a lack of sufficient knowledge and understanding of the wrong resources and the concept of the general budget and the role of their tools.
In the presence of a fiscal policy and the style of acting with public money. I was expecting the presence of cycle (economic) financial crisis converge durations occur constantly, where the first period from 2004 to 2008 for five years and then the crisis in 2009, and the second period for a period of four years for the period 2010-2014 to occur in 2015 and for the period from 2016 to 2019 for three years, but the circumstance of security, political instability and the end of 2013 and the subsequent precipitated the emergence of the crisis in the second half of 2014, where were these developments sufficient to justify more spending, as is the case in the crises of various economies, where the face of crisis, accompanied by exceptional tunnels (albeit to varying degrees) and this is what actually happened in Iraq.
Already hold a meeting of the Constitutional Hall of the previous session of the House of Representatives before the elections in the presence of Messrs president and two deputies, Vice-President of the Council of Ministers as well as the delegation of the Kurdistan region concerned ministers and heads of political blocs in the House of Representatives, and then asked clearly be viewed seriously and objectively to the problem of the budget deficit and this (planning) is not rational to spend whos more public spending, and not to leave the current session of further problems for the subsequent session of the Council of Representatives.
Although this has not been a lot of satisfaction from the audience, because what was done is only willing to discuss the export of oil from the Kurdistan region, however, but partial view of the state of the problem does not only lead to a failure to resolve and sometimes even increases the complexity and this is what happened.
What to do now? How should address the status of the 2014 budget and the way to solve the financial Ashkaladtha ??
The objective view of the treatment had to be viewed away from the political exploitation after he led the political pressure when developing and approving the draft budget to where we are and that leaves the manipulation of financial assignments Kersh layers, slides and Almnatkiet.
Although the crisis is not Pehinh but at the same time appropriate to review the entire process of economic management and use of resources rationally. There is a deficit in the state budget resources, but the problem lies not in the size of the deficit, but the reasons for his appearance and ways to be seen, for example, some now believe that the problematic 2014 budget treatment is not to be issued confirming this error continued to look at the problem, and about what progress, the development of processors for the whole of this dilemma comes through the following proposal:
1.ajb the issuance of the general budget for 2014, the law is technically the law and legislation, not orders spending, actual spending is subject to the powers of the various departments, the budget (as mentioned above) is a vacation to collect public money and use it and not fund, and when we talk about it now and we are in the end of 2014, the actual funding has been public units and therefore this spending should be framed under the Act issued Kan final accounts of the state, Vasalahih granted to the Minister of Finance to fund units disbursement rate of 1/12 of the actual expenditures for the previous year is an exception for non-issuance of the budget in the timing treatment and no reason not originally issued, and includes the issuance of the budget law disclosure of the details of allocations and the amounts actually spent during the year.
2. In light of the current technical progress of the work of the banking system, the resort to a unified cash account to the accounts of government units (there is a committee formed for this purpose by the Central Bank and Ministry of Finance and the General Secretariat of the Council of Ministers to achieve this at the time) will provide high flexibility for the government to act on cash return them, which exceed the amount of 15 trillion dinars in most cases pessimistic estimate.
3.an issued the General Budget Law year, including substance empowers the Minister of Finance the authority to issue government bonds used to cover expected to occur actual deficit, as otherwise there is no validity to the one in the issuance of these bonds, but a separate law, and do not install this paragraph leads to rely mainly on the deficit for external borrowing and more debt and exposure to a foreigner.
4.an coincides issuance of the budget for the current year and the next year at least with Cancel and address fragmentation witnessed sovereign revenues over the past years and return to feed expenses centrally - especially after the apparent failure to use efficient in meeting the needs of citizens in the beneficiary provinces.
5.kiem Ministry of Planning and identification to be implemented in Iraq, according to studies of efficiency, necessity and in exchange, and technical strategic projects are focusing on infrastructure, and prioritizing development projects, including the services of in accordance with the standard of weights prepared by the ministry which ensure the equitable distribution of services among citizens and leave maker decision to choose between these priorities and be included in the medium-term development plan, and use any actual increase in oil export revenues to cover these projects exclusively impetus to the peace order of these projects in the approved plan and stay away permanently from thinking to issue deficit planned budget or the budget supplemental to use this revenue.
This is what I think an important first step towards the development of thinking in a realistic step to develop to overcome the crisis for future strategy.
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