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"Life" - Iraq: Fears of a budget deficit
March 10, 2015,
Experts for the Iraqi budget deficit for this year because of expected oil production and export decline and low surplus indicators in «Development Fund for Iraq», in time for Genta money and the economy both parliamentarians blamed the government for the fiscal deficit in the federal budget.
A financial expert, the appearance of Mohammed Saleh said in an interview to «life»: «The projected budget deficit this year of 20.7 trillion dinars ($ 17.8 billion), has been achieved if the Kurdistan Regional Government did not agree to the export of 400 thousand barrels per day to the central government and took increase of the federal budget, which is estimated at 17 percent, and in light of the decrease in the surplus Development Fund for Iraq ».
Saleh added: «that the surplus in the fund until the end of 2012, amounted to $ 18 billion, while the end of 2013 fell to six billion, which indicates the possibility of recording the said deficit».
And reduced the Ministry of Finance of those concerns because of what it considered a proactive plans developed to address the budget deficit. He stressed the Deputy Minister of Finance Fadel Prophet's «life» that «the deficit in the current budget cut of 35 trillion dinars to 20.7 trillion, what is considered acceptable in terms of oil export rate of 3.4 million barrels per day at a price of $ 90 a barrel».
And Abizaid: «selling price has not decreased during the six months from $ 90 a barrel, what would be a surplus that can be used to bridge the fiscal deficit in the budget». Ezzat and Finance Committee member Magda al-Tamimi said in a statement to «life», the fiscal deficit in the budget to «approve the final pension law and amend the law of political prisoners and calculating self-financing funds Companies».
She explained that «address the deficit is to cut government spending and stimulate the financial market and maintain the oil installations from sabotage, as Iraq is dependent on oil imports to finance 95 percent of the budget». It continued: «that the deficit in the current budget and the default was caused by the price of a barrel of oil to $ 80, and the export of three million barrels per day», loaded with «the Ministry of Finance and the entire Cabinet responsibility in the event of disability check this».
He warned a member of the economic and investment commission in the House of Representatives Mahma Khalil «continued fiscal deficit in the federal budget without treatment, especially as he was in the previous budget 12 percent, what will affect the direct and significant form of investment projects, especially as the Financial Management Act requires the State to bankruptcy if the fiscal deficit reached 50 percent. »
The total draft budget 2014 sent from the Ministry of Finance to the General Secretariat of the Council of Ministers in September (last September) 174.649 trillion dinars, after calculating oil revenues and the value of 130 trillion dinars.
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