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Narrator: expand other resources to cover the deficit
10/21/2015 0:00
Baghdad Joseph Zayer Imad emirate
participants agreed in a panel discussion on the need to pursue rational in spending, economic policy and the creation of sources of public non-oil revenues through the activation of the tax system and reduce unnecessary spending.
This came during the seminar organized by the Al-Mustansiriya Center for Arab and International Studies, Department of economic studies, and attended by «morning», entitled «problematic oil prices and their impact on the budget in 2016», on last Monday, and was attended by a number of academics, experts and specialists.
The d. Ahmed Omar al-Rawi in his lecture the importance of taking actions to be taken to reduce the projected deficit in the budget procedures and said: «as a result of the significant decline in oil revenues in exchange for increasing public expenditure with implications on the government's financial obligations, all this requires them to take more serious measures to reduce public expenditure, with Work on the adoption of a rational economic policy in spending and the creation of sources of public non-oil revenues.
»made the narrator several recommendations to reconsider the terms of the budget through the achievement of stability in the budget growth adoption rate in line with the annual growth of total output rate, and not to make its development Bria oil function, and achieving distribution equitable allocations between the provinces and the region, so as to ensure the recovery of the national economy as a whole, and to achieve an efficient allocation of financial resources for the Platform for investment, leading to economic performance efficiency and increase its ability to provide the core for development of physical components of
the economic, and write off all unnecessary spending items, especially with regard to benefits items social and expenses of public offices for state officials.
He said the importance of «re-examine the privileges granted special grades which weigh heavily on the budget of the diverse allocations large and protections, wheels and other privileges, and hard work to fight corruption in state institutions in all joints, particularly accused the security establishment by a major corruption, and activating the tax system and public duties.
and gave the narrator historical overview of the public budgets in Iraq since the inception of the Iraqi government in 1921 and to the present, noting the different phases have been characterized by each of these stages of political, economic and social Basmadtha.
He said: «But all stages of their budgets have been involved total reliance the rents earned from oil exports, and oil was one of the most important factors affecting
the preparation of the Iraqi budgets over the last period ».
He pointed the narrator in his lecture to the great challenge that is facing the Iraqi economy since late 2014, after the decline in oil prices to more than 45 percent , with pressure to increase government spending, which form more than 70 percent of the total budget, and continued the narrator «and characterized by this spending being inflexible because he represents wages and salaries for a wide cross-section of Iraqi society, this as well as the expenses of the war on terrorism and the war required from
large expenditures in the military and security side.
So he became the government significant challenges are difficult to overcome in preparing the 2016 budget ».
He noted the narrator to the expectations about the price of oil will remain between $ 45-48 by the decline in Chinese demand for
oil, one of the most important importers of oil
from« OPEC »a result of the decline in China's economic growth.
as well as to increase Iran's oil exports after the lifting of economic sanctions against it, and the return of Libyan oil to the international market, and the continuation of large quantities of Russian oil in spite of lower prices, are all factors that support the expectation the stability of the low price of oil.
The narrator «that any rise in global oil prices will encourage the increase of shale oil production, and thus will lead to an increase in the offer and then return to lower prices again».
He concluded the narrator to say: »The other challenge for the 2016 budget is the difficulty of access to the production of 3.6 million barrels per day over the next year, which is the ceiling, which was adopted in the preparation of the draft budget for 2016 as a result of the problems suffered by the Iraqi oil sector, as well as the difficulty of strengthening the non-oil revenue because of the complications suffered by the Iraqi economy, and this is what we have seen in the suspension of a sales tax because of the large protests it ».
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