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Iraq will spend about 20 percent of the 2016 budget on defense
OCTOBER 28, 2015
BAGHDAD (Reuters) - Iraqi Minister of Finance said on Wednesday that the financial pressures Iraq paid to the suspension of a major arms deals, but the state will recruit ten thousand additional personnel from the paramilitary presence is necessary to fight the organization «Islamic State», pointing out that defense spending would take on about 20 percent of the budget of 2016
will Baghdad focused its military spending in 2016 on light and medium weapons, such as sniper rifles, as well as mine detection equipment poll devices, instead of heavy weapons such as artillery.
Zebari said in an interview in the investment Reuters summit in the Middle East «the government shifted its focus to improving the quality of the necessary weapons for this kind of war.»
The minister said that despite the decline in available liquidity to Iraq - one of the leading exporters of oil-because of falling crude prices, but the focus has shifted to small arms and light weapons may enhance the anti-militant efforts.
He added that about 20 percent of the 2016 budget will be spent on defense items, including the popular crowd forces. However, spending on paramilitary forces will be reduced from this year dedicated to one billion dollars in the framework of broader budget cuts.
The PDF crowd of volunteers and fighters from the Sunni tribes and Shiite groups backed by Iran. And looks to those forces as a bulwark against the militants to organize the Islamic state who seized control of about a third of the country last year.
Zebari said «I think we gave them what they asked ... about ten thousand new recruits .. but their budget (new recruits) within the security forces budget.»
The proposed Iraqi general budget for 2016, spending nearly $ 95 billion, and a deficit of about $ 21 billion, compared with an initial estimate of this year's spending of about $ 105 billion and deficit of 22 billion.
Oil accounts for more than 80 percent of Iraq's budget revenues, but the prices Crude dropped to less than half since the middle of 2014.
International investors demanded a yield high when Iraq tried to sell bonds worth two billion dollars a few weeks ago because of concern about the public finances of the state status, and ended up in Baghdad to the cancellation of the bond issue.
But Zebari said that the government is making strenuous efforts for the reform of public finances, expected Baghdad not to spend only about 60 percent of the budget of 2015 by the end of this year, due to reductions in operational and capital expenditures.
He said «already imposed strict limits on all ministries and government departments in order to overcome this crisis.» He added that Iraq Revenue Sales of crude oil in 2015 is still without a government, which refers to the monthly exports of 3.3 million barrels a day forecast, the price of $ 54 per barrel of oil. He said the average oil price since the beginning of the year until October / October of $ 48 a barrel.
It is necessary to strengthen the Baghdad revenues to reach an agreement with the Kurdistan Regional Government of Iraq on oil exports from the northern region. Kurdistan government agreed to convert up to 550 thousand barrels per day to Iraq's oil marketing company «Sumo» in exchange for the allocation of Baghdad, 17 percent of the budget payments to Erbil.
However, the Government of the Territory reduced their allocations for »Sumo» in June, and increase the independent sales of oil crude through pipelines extending to Turkey a steady line in the actual cancellation of the agreement.
Zebari said he was confident that a delegation from the semi-autonomous region will go to Baghdad soon to negotiate a re-activation of the agreement covered by the proposal of the general budget for 2016.
The «If we can re-activate the (agreement ) oil between the Government of the Kurdistan region and Baghdad again and ensure the implementation of the two sides to him .. I believe that we will be able success this year ».
It was Haider al-Abadi, the Iraqi prime minister, said yesterday that the decline in oil prices dramatically, and enter the country at war with« State Islamic »deplete big money from the federal budget, a situation the government in financial trouble and Dfaha to look for to fill the requirements of resources.
He said during his speech in front of a group of university professors« The professors have a distinct role in the community they are a role model for him, so it is necessary to put them financial situation, which passes by country, did not reduce the allocation was part of what we want to do, but the repeated declines in global oil prices led to some of the measures because of the seriousness of the financial situation ».
He added» that Iraqi oil source close to 59 trillion dinars, and there is the cost of oil production, which remains of the amount of 45 trillion dinars, and the debt accumulated, Valmtbaka about 40 trillion dinars, and salaries and retirement needs 50 trillion dinars, how is spending on the war, health, education, agriculture and services, the poor and other ».
He said Abadi« that the government continues to reduce dependence on oil as a key resource policy budget by improving and the rest of the sectors of the private sector ».
On the other hand load and a source in the oil sector data reported that crude exports from southern Iraq rose to 3.1 million barrels per day since the beginning of October / October to moving towards recording a monthly record high.
This increase indicates continued the high level of production pumped by senior Organization of Petroleum Exporting Countries members including smarter global supply glut and contributed to the imposition of downward pressure on prices.
The average exports from the southern harbors in Iraq 3.1 million barrels per day in the first twenty-seven days of the current month. If this trend continues, the exports will exceed the record high recorded in July at 3.064 barrels per day.
The increased shipments from northern Iraq via the Turkish port of Ceyhan this year, despite tensions between Baghdad and the Kurdistan Regional Government on budget payments, though the rate fell in October .
The average independent exports of the Kurdistan region 510 thousand barrels per day in the first twenty-seven days of October, according to data loading, while the Iraqi oil marketing company has not issued (SOMO) any amounts of the north after shipments amounted to about 20 thousand barrels per day in September.
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OCTOBER 28, 2015
BAGHDAD (Reuters) - Iraqi Minister of Finance said on Wednesday that the financial pressures Iraq paid to the suspension of a major arms deals, but the state will recruit ten thousand additional personnel from the paramilitary presence is necessary to fight the organization «Islamic State», pointing out that defense spending would take on about 20 percent of the budget of 2016
will Baghdad focused its military spending in 2016 on light and medium weapons, such as sniper rifles, as well as mine detection equipment poll devices, instead of heavy weapons such as artillery.
Zebari said in an interview in the investment Reuters summit in the Middle East «the government shifted its focus to improving the quality of the necessary weapons for this kind of war.»
The minister said that despite the decline in available liquidity to Iraq - one of the leading exporters of oil-because of falling crude prices, but the focus has shifted to small arms and light weapons may enhance the anti-militant efforts.
He added that about 20 percent of the 2016 budget will be spent on defense items, including the popular crowd forces. However, spending on paramilitary forces will be reduced from this year dedicated to one billion dollars in the framework of broader budget cuts.
The PDF crowd of volunteers and fighters from the Sunni tribes and Shiite groups backed by Iran. And looks to those forces as a bulwark against the militants to organize the Islamic state who seized control of about a third of the country last year.
Zebari said «I think we gave them what they asked ... about ten thousand new recruits .. but their budget (new recruits) within the security forces budget.»
The proposed Iraqi general budget for 2016, spending nearly $ 95 billion, and a deficit of about $ 21 billion, compared with an initial estimate of this year's spending of about $ 105 billion and deficit of 22 billion.
Oil accounts for more than 80 percent of Iraq's budget revenues, but the prices Crude dropped to less than half since the middle of 2014.
International investors demanded a yield high when Iraq tried to sell bonds worth two billion dollars a few weeks ago because of concern about the public finances of the state status, and ended up in Baghdad to the cancellation of the bond issue.
But Zebari said that the government is making strenuous efforts for the reform of public finances, expected Baghdad not to spend only about 60 percent of the budget of 2015 by the end of this year, due to reductions in operational and capital expenditures.
He said «already imposed strict limits on all ministries and government departments in order to overcome this crisis.» He added that Iraq Revenue Sales of crude oil in 2015 is still without a government, which refers to the monthly exports of 3.3 million barrels a day forecast, the price of $ 54 per barrel of oil. He said the average oil price since the beginning of the year until October / October of $ 48 a barrel.
It is necessary to strengthen the Baghdad revenues to reach an agreement with the Kurdistan Regional Government of Iraq on oil exports from the northern region. Kurdistan government agreed to convert up to 550 thousand barrels per day to Iraq's oil marketing company «Sumo» in exchange for the allocation of Baghdad, 17 percent of the budget payments to Erbil.
However, the Government of the Territory reduced their allocations for »Sumo» in June, and increase the independent sales of oil crude through pipelines extending to Turkey a steady line in the actual cancellation of the agreement.
Zebari said he was confident that a delegation from the semi-autonomous region will go to Baghdad soon to negotiate a re-activation of the agreement covered by the proposal of the general budget for 2016.
The «If we can re-activate the (agreement ) oil between the Government of the Kurdistan region and Baghdad again and ensure the implementation of the two sides to him .. I believe that we will be able success this year ».
It was Haider al-Abadi, the Iraqi prime minister, said yesterday that the decline in oil prices dramatically, and enter the country at war with« State Islamic »deplete big money from the federal budget, a situation the government in financial trouble and Dfaha to look for to fill the requirements of resources.
He said during his speech in front of a group of university professors« The professors have a distinct role in the community they are a role model for him, so it is necessary to put them financial situation, which passes by country, did not reduce the allocation was part of what we want to do, but the repeated declines in global oil prices led to some of the measures because of the seriousness of the financial situation ».
He added» that Iraqi oil source close to 59 trillion dinars, and there is the cost of oil production, which remains of the amount of 45 trillion dinars, and the debt accumulated, Valmtbaka about 40 trillion dinars, and salaries and retirement needs 50 trillion dinars, how is spending on the war, health, education, agriculture and services, the poor and other ».
He said Abadi« that the government continues to reduce dependence on oil as a key resource policy budget by improving and the rest of the sectors of the private sector ».
On the other hand load and a source in the oil sector data reported that crude exports from southern Iraq rose to 3.1 million barrels per day since the beginning of October / October to moving towards recording a monthly record high.
This increase indicates continued the high level of production pumped by senior Organization of Petroleum Exporting Countries members including smarter global supply glut and contributed to the imposition of downward pressure on prices.
The average exports from the southern harbors in Iraq 3.1 million barrels per day in the first twenty-seven days of the current month. If this trend continues, the exports will exceed the record high recorded in July at 3.064 barrels per day.
The increased shipments from northern Iraq via the Turkish port of Ceyhan this year, despite tensions between Baghdad and the Kurdistan Regional Government on budget payments, though the rate fell in October .
The average independent exports of the Kurdistan region 510 thousand barrels per day in the first twenty-seven days of October, according to data loading, while the Iraqi oil marketing company has not issued (SOMO) any amounts of the north after shipments amounted to about 20 thousand barrels per day in September.
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