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Iraq seeks to promote austerity and taxes to compensate for the decline in crude revenues
08-01-2015 12:00 PM
Iraq embarked on a comprehensive review of public expenditure of the state, in an effort to address the budget deficit because of falling oil prices. It is expected that these measures will lead to a saving of about $ 13 billion, while the government is expected to resort to dispose of about 50 percent of bank reserves «Iraq» and «rational», as well as borrowing from the balance of «Commercial Bank of Iraq.»
Economic circles suggest that includes austerity luxury and sovereign expenses which constitute 10 percent of the total budget of the country.
These circles and excludes government had resorted to reserves of the Central Bank, which is estimated at $ 77 billion because they are not authorized to dispose of it. reveals adviser to the Iraqi Prime Minister for Economic Affairs, the appearance of Saleh, in an interview to «life», a government directed to address the decline in oil prices through increased production He pointed out that the oil estimates in the budget next year will be correct, but they are different from last year's budget.
He pointed out the benefit of the alternatives that will resort to the government to cover the deficit through the promotion of some resources, such as fees and taxes to get the revenue that can raise income, indicating that the total taxes in the current year's budget reached $ 1.5 billion and predicted that the tax rate rises in the next budget to make up 10 percent of gross domestic product.
He explained that the taxes in Iraq is less than two billion dollars, and this figure does not reflect the economic activity actor and the service tax touches the lives of a group of people and touches a wide slice.
He stressed that the authorities concerned to prepare the budget is working on the calendar revenue and studied to reduce unnecessary expenditures and maintain salaries poor kids and staff salaries and the army.
He explained that the stop wasteful state spending and capping them commensurate with the potential of existing priorities, Iraq is facing two wars, the first internal against «Daash», and the second external against oil prices, and saw that the five-member committee is currently composed of the budget preparation work balance high.
The economic circles suggested cut the cash reserve for the bank «rational» and «Iraq» to deal with the oil price crisis, as this measure provides $ 6 billion to the Treasury as well as the government's borrowing from «TBI» about $ 3 billion and a billion dollars of «the care of minors body», on the grounds that These frozen funds will be under the protection of the state added to the Treasury, which will provide $ 3 billion in remittances. The foot oil experts proposals to address the deficit in the state's resources as a result of lower oil prices, most notably former oil minister Ibrahim Bahr al-Ulum, who proposed the implementation of two steps, the first is to increase oil production, especially from the middle and south fields that are expected to add 400 thousand barrels during the next year to reach the source of the oil to about 2.75 million barrels per day, and the second summed activate the Kirkuk oilfields system which produces about 350 thousand barrels to be exported through cooperation with the Kurdistan Regional Government to standardize the production and pumped through the Turkish Ceyhan pipeline.
It also examined the economic circles ways of activating the work of the private sector in promoting the state's resources and stimulate the productive sectors where, pointing out that it is not only through legislation, the Social Security Act and the application of the tariff law and reconsider the prevailing laws, adding that such measures that would open parallel ports, oil revenues unstable that the Iraqi economy has been subjected to recurrent crises. He says Iraqi banks representative in the Council of Ministers of the Economic Commission Nevzat David Fattah dry, the ongoing debate about the decline of state resources as a result of lower oil prices and its repercussions on the Iraqi economy, pays about to say that the recovery of the economic file and the role of the private sector which is the backbone of the activity generally the state, which requires the provision of transition from totalitarianism to a market economy requirements as an optimal solution to the challenges faced by the country's economy, pointing out that the government's plan includes a comprehensive economic programs and require attention and other resources such as agriculture, industry, trade and services.
Dry and focused on the most important problems plaguing the economic sector, including the ancient laws and bureaucracy that currently prevail, and that would expel the national and foreign capital abroad, also pointing to the existence of a great need in the transfer of some services to the private sector within the privatization program as part of .
He pointed out that Iraqi banks won a share of the results of the decline in the state's resources where they can not separate the activity of the banking sector for the overall economic activity of the country because it is the financial arm of the Development and Reconstruction.
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08-01-2015 12:00 PM
Iraq embarked on a comprehensive review of public expenditure of the state, in an effort to address the budget deficit because of falling oil prices. It is expected that these measures will lead to a saving of about $ 13 billion, while the government is expected to resort to dispose of about 50 percent of bank reserves «Iraq» and «rational», as well as borrowing from the balance of «Commercial Bank of Iraq.»
Economic circles suggest that includes austerity luxury and sovereign expenses which constitute 10 percent of the total budget of the country.
These circles and excludes government had resorted to reserves of the Central Bank, which is estimated at $ 77 billion because they are not authorized to dispose of it. reveals adviser to the Iraqi Prime Minister for Economic Affairs, the appearance of Saleh, in an interview to «life», a government directed to address the decline in oil prices through increased production He pointed out that the oil estimates in the budget next year will be correct, but they are different from last year's budget.
He pointed out the benefit of the alternatives that will resort to the government to cover the deficit through the promotion of some resources, such as fees and taxes to get the revenue that can raise income, indicating that the total taxes in the current year's budget reached $ 1.5 billion and predicted that the tax rate rises in the next budget to make up 10 percent of gross domestic product.
He explained that the taxes in Iraq is less than two billion dollars, and this figure does not reflect the economic activity actor and the service tax touches the lives of a group of people and touches a wide slice.
He stressed that the authorities concerned to prepare the budget is working on the calendar revenue and studied to reduce unnecessary expenditures and maintain salaries poor kids and staff salaries and the army.
He explained that the stop wasteful state spending and capping them commensurate with the potential of existing priorities, Iraq is facing two wars, the first internal against «Daash», and the second external against oil prices, and saw that the five-member committee is currently composed of the budget preparation work balance high.
The economic circles suggested cut the cash reserve for the bank «rational» and «Iraq» to deal with the oil price crisis, as this measure provides $ 6 billion to the Treasury as well as the government's borrowing from «TBI» about $ 3 billion and a billion dollars of «the care of minors body», on the grounds that These frozen funds will be under the protection of the state added to the Treasury, which will provide $ 3 billion in remittances. The foot oil experts proposals to address the deficit in the state's resources as a result of lower oil prices, most notably former oil minister Ibrahim Bahr al-Ulum, who proposed the implementation of two steps, the first is to increase oil production, especially from the middle and south fields that are expected to add 400 thousand barrels during the next year to reach the source of the oil to about 2.75 million barrels per day, and the second summed activate the Kirkuk oilfields system which produces about 350 thousand barrels to be exported through cooperation with the Kurdistan Regional Government to standardize the production and pumped through the Turkish Ceyhan pipeline.
It also examined the economic circles ways of activating the work of the private sector in promoting the state's resources and stimulate the productive sectors where, pointing out that it is not only through legislation, the Social Security Act and the application of the tariff law and reconsider the prevailing laws, adding that such measures that would open parallel ports, oil revenues unstable that the Iraqi economy has been subjected to recurrent crises. He says Iraqi banks representative in the Council of Ministers of the Economic Commission Nevzat David Fattah dry, the ongoing debate about the decline of state resources as a result of lower oil prices and its repercussions on the Iraqi economy, pays about to say that the recovery of the economic file and the role of the private sector which is the backbone of the activity generally the state, which requires the provision of transition from totalitarianism to a market economy requirements as an optimal solution to the challenges faced by the country's economy, pointing out that the government's plan includes a comprehensive economic programs and require attention and other resources such as agriculture, industry, trade and services.
Dry and focused on the most important problems plaguing the economic sector, including the ancient laws and bureaucracy that currently prevail, and that would expel the national and foreign capital abroad, also pointing to the existence of a great need in the transfer of some services to the private sector within the privatization program as part of .
He pointed out that Iraqi banks won a share of the results of the decline in the state's resources where they can not separate the activity of the banking sector for the overall economic activity of the country because it is the financial arm of the Development and Reconstruction.
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