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Iraq is working to address the budget deficit after falling oil prices
2014/11/30 06:38:47 AM
BAGHDAD / Wi-News
The Cabinet decided, in an extraordinary session to form a ministerial committee to review the state spending in order to address a large deficit in next year's budget of the country.
The Cabinet intends to approve the 2015 budget today to be sent to the House of Representatives for approval, but to continue to decline in oil prices put the government in a quandary.
Oil fell to a new low level in four years below $ 72 a barrel on Friday, prices tumbled more than a third since June because of the boom of shale oil production in the United States and weak growth in China and Europe.
The new decline after the State Organization of Petroleum Exporting "OPEC" decided to maintain the previously planned production rates unchanged.
According to a statement posted on the Prime Minister Haider al-Abadi, that "the Council of Ministers held an extraordinary session to review the proposal of the general budget for 2015 submitted by the Ministry of Finance."
The statement said, "The Council decided to form a ministerial committee shall conduct a comprehensive review of public expenditure of the State; to come out with recommendations made during the week to address and reduce the projected deficit in the budget," noting that "the decision was made in light of the sharp decline, which happened in oil prices over the past few days What caused the dramatic rise in the rates of disability. "
And Preliminary estimates indicate that Iraq's budget for next year of about $ 100 billion based on the price of $ 70 a barrel.
Iraq relies on oil imports to finance 95% of the budget, and the country exports about 2.5 million barrels per day.
Iraq did not recognize the current year's budget in 2014 because of disagreements over its provisions and the worsening violence after the invasion of the "Daash" to the north and west of the country.
Usually the Iraqi authorities to approve the financial budgets delayed because of differences between the politicians and the aspects of exchange and management of the country's wealth, but that the new government headed by al-Abadi will try to prove themselves quickly to pass the budget to parliament.
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