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Iraq cancels a third of the 2016 projects
15/07/2015
The government stopped the beginning of the year about 7 thousands continued to ministries and provincial investment project because of lack of funding and low oil prices.
BAGHDAD / Obelisk: the Iraqi government has failed for the first time to secure public sector wages for the current month, and resorted to external borrowing, and the fluctuation of oil sales has forced the Ministry in charge of planning drawing annual budgets on the officially announced the cancellation of 30 percent of the ministries and provinces investment projects, and the development of plan to start work officially implemented projects Order forward. Began in the Ministry of Planning earlier this month extensive discussions with all ministries and departments not associated with the Ministry and the provinces to discuss the proposed investment plans for 2016.
The House of Representatives approved the current financial year's budget ceiling of US $ 105 billion and a deficit of ascending until now $ 30 billion, the highest compared to previous budgets, as a result of lower oil prices and the deterioration of the security situation in the country.
The Undersecretary for Technical Affairs Johan Maher Hammad said in a statement that "these discussions come in the framework of the recommendations made by the special rearrangement of investment expenditure ministerial committee in order of priority and importance of the project in light of the current economic conditions and the postponement of the least important projects."
He explained that "investment projects discussions with the concerned parties aim to agree on priorities for each point of access to rationalize the investment plan as much as possible, to suit the financial situation that the country is going through and the continuing decline in oil prices, which impacted negatively on earnings."
Johan and pointed out that "the projects to be agreed upon will serve as the first step in preparation of the proposed investment budget for 2016, after determining the Ministry of Finance financial ceilings for those projects and projects that will stop and those that will be postponed or removed to reduce the financial obligations on the state budget."
The rationalization plan by about 30 percent, or whether to postpone lifting of the plan for the ministries and provinces, revealing at the same time adopting a set of solutions to address the problems caused by the financial crisis between the compact, and to seek the approval of senior-related adjustments views.
Insofar as the adoption of the payment on credit policy, which has already been to the parliament rejected, Johan "The ministry has prepared a working paper represents the proposed mechanism to move the subject of payment on credit and to address the higher authorities quickly for inclusion in its agenda and work to activate this mechanism in accordance with Article 26 of the general budget of the state of the law said 2015, which helps in stimulating economic activity. "
The head of the economic and investment commission parliamentary Jawad al-Bolani said in a statement to "life," I followed "obelisk", that "the current financial crisis did not come as a result of falling oil prices and the crisis only security, but was corruption and poor planning of the main reasons."
He pointed out that "the government find it difficult to state employees totaling 5.2 million employees and retired the salaries of insurance, and it was on the previous governments to think about it and exploit additional oil revenues and its high price in projects supply the state treasury, but the price of oil, waste, theft and embezzlement of money retreat brought us to where we are today. "
And he confirmed a member of the economic and investment commission parliamentary economic expert Nora Salem that "the financial crisis gradually escalate and will be very difficult during 2016, due to a large portion of oil revenues exhaustion in military operations to counter the terrorist organization Daash".
She added: "The government has stopped the beginning of the year about 7 thousands continued to ministries and provincial investment project because of lack of funding and low oil prices, and now announces the rationalization of 30 other percent of the projects, which will negatively impact on economic development, and cause other economic problems of future governments may fail to find an appropriate solution. "
The budgets of federal Iraq began in 2005, after the formation of the first elected government, $ 30 billion, rose in 2006 to $ 33.7 billion, and exceeded 41 billion in 2007, the Parliament acknowledges the 2008 budget worth $ 48 billion.
The 2009 budget amounted to $ 58 billion, rising in 2013 to more than 118 billion. The government has been unable or the House of Representatives of the adoption of the 2014 budget amid accusations loss of $ 123 billion from the state treasury.
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15/07/2015
The government stopped the beginning of the year about 7 thousands continued to ministries and provincial investment project because of lack of funding and low oil prices.
BAGHDAD / Obelisk: the Iraqi government has failed for the first time to secure public sector wages for the current month, and resorted to external borrowing, and the fluctuation of oil sales has forced the Ministry in charge of planning drawing annual budgets on the officially announced the cancellation of 30 percent of the ministries and provinces investment projects, and the development of plan to start work officially implemented projects Order forward. Began in the Ministry of Planning earlier this month extensive discussions with all ministries and departments not associated with the Ministry and the provinces to discuss the proposed investment plans for 2016.
The House of Representatives approved the current financial year's budget ceiling of US $ 105 billion and a deficit of ascending until now $ 30 billion, the highest compared to previous budgets, as a result of lower oil prices and the deterioration of the security situation in the country.
The Undersecretary for Technical Affairs Johan Maher Hammad said in a statement that "these discussions come in the framework of the recommendations made by the special rearrangement of investment expenditure ministerial committee in order of priority and importance of the project in light of the current economic conditions and the postponement of the least important projects."
He explained that "investment projects discussions with the concerned parties aim to agree on priorities for each point of access to rationalize the investment plan as much as possible, to suit the financial situation that the country is going through and the continuing decline in oil prices, which impacted negatively on earnings."
Johan and pointed out that "the projects to be agreed upon will serve as the first step in preparation of the proposed investment budget for 2016, after determining the Ministry of Finance financial ceilings for those projects and projects that will stop and those that will be postponed or removed to reduce the financial obligations on the state budget."
The rationalization plan by about 30 percent, or whether to postpone lifting of the plan for the ministries and provinces, revealing at the same time adopting a set of solutions to address the problems caused by the financial crisis between the compact, and to seek the approval of senior-related adjustments views.
Insofar as the adoption of the payment on credit policy, which has already been to the parliament rejected, Johan "The ministry has prepared a working paper represents the proposed mechanism to move the subject of payment on credit and to address the higher authorities quickly for inclusion in its agenda and work to activate this mechanism in accordance with Article 26 of the general budget of the state of the law said 2015, which helps in stimulating economic activity. "
The head of the economic and investment commission parliamentary Jawad al-Bolani said in a statement to "life," I followed "obelisk", that "the current financial crisis did not come as a result of falling oil prices and the crisis only security, but was corruption and poor planning of the main reasons."
He pointed out that "the government find it difficult to state employees totaling 5.2 million employees and retired the salaries of insurance, and it was on the previous governments to think about it and exploit additional oil revenues and its high price in projects supply the state treasury, but the price of oil, waste, theft and embezzlement of money retreat brought us to where we are today. "
And he confirmed a member of the economic and investment commission parliamentary economic expert Nora Salem that "the financial crisis gradually escalate and will be very difficult during 2016, due to a large portion of oil revenues exhaustion in military operations to counter the terrorist organization Daash".
She added: "The government has stopped the beginning of the year about 7 thousands continued to ministries and provincial investment project because of lack of funding and low oil prices, and now announces the rationalization of 30 other percent of the projects, which will negatively impact on economic development, and cause other economic problems of future governments may fail to find an appropriate solution. "
The budgets of federal Iraq began in 2005, after the formation of the first elected government, $ 30 billion, rose in 2006 to $ 33.7 billion, and exceeded 41 billion in 2007, the Parliament acknowledges the 2008 budget worth $ 48 billion.
The 2009 budget amounted to $ 58 billion, rising in 2013 to more than 118 billion. The government has been unable or the House of Representatives of the adoption of the 2014 budget amid accusations loss of $ 123 billion from the state treasury.
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