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The federal budget deficit between risk and available resources
10/31/2015 1:07
Government's economic policies include
d. Acer Yassin
with the approval of the federal budget of the Republic of Iraq for the year 2016 of the House of Representatives this early record of the fiscal year time, show a lot of views that warns of several problems surrounding the folds of their contents and should be seen to take the reasons for progress by taking advantage of its capabilities and resources available which have become more limited tangible. The state budget as a tool that reflects its strategy to benefit from the limited resources and the optimal utilization of the fact that the government budget financial position of the state, strength and represent a summary My guess, and a detailed account of all state spending and revenues, is likely to achieve during the coming financial year, and this report is supported by the power Legislative issued a law from the government. The derived importance of the general budget of It's a political tool, because the government translate the goals of its policies through credits include them in the budget of revenues and expenses, it is which is economic policy-making and clear through if the government seeks to minimize the disparity in the distribution of income and wealth or increase arms or minimize it. And then should the general budget that is consistent with the established goals of the government's economic reform overall, but that the reality of the current budget of $ headquarters deficit of more than 29 trillion dinars threatens the likelihood of misalignment in implementation and in particular with the estimates are not consistent with the actual reality of the market to determine the price ( 45) dollars per barrel and the rate of export of (3.6) Mlaepn barrels per day with no clear signs of recovery in global oil prices, which does not justify any slack endeavors to diversify the economy. The fact that the public budget shows the financial position of the state and its strength does not mean surely they remain on one case, the state of balance or imbalance appear in its sides, public expenditures and public revenues, as the imbalance either in surplus or in deficit, is intended to balance the government budget as equal to public expenditure with public revenues, as intended, the balance of public revenues with the expenditures in the state budget tables and crosses two concepts from the concept of balance in general. and that the design of the Iraqi general budget on the basis of a scheme stems from the same controversy that still existed between specialists in public finance science in their views about the balance and imbalance, which occur in the government budget deficit, as the classics is believed that the budget balance It is to be achieved in all circumstances, and not to cause an imbalance in the budget, while the proponents of the modern school (Keynesians) The occurrence of the imbalance (surplus or deficit) is not carries any risk, but on the contrary may be the way out of the developments of the crisis in the economy. classified nature of the deficit in the Iraqi government budget as a structural deficit that occurs if public revenues did not cover continuously overhead, which is mainly due to increased government spending by more than the financial capacity of the economy and bear the burdens, which indicates the presence of a defect in the same structure of the national economy, making it difficult to resolve this deficit if the use of financial means only. This is the pension financial realities in Iraq in recent fiscal years, as the Iraqi government is spending more than public revenues from oil sales fact that the Iraqi economy Rieia depends on oil class basis and reflected in the planned budget for 2016, which will continue the dominance of oil revenues rentier on the overall public expenditures by 95 percent. Reducing the budget deficit is essential to avoid entering the country Bmdioniat large and very high interest rates Stkpl the future of the national economy. We must find a radical review of the sections of the general budget spending and address the sag you live by state agencies after the integration of many advanced classes in the old part of public sector employees army, which led to the weakening of the effectiveness of economic and service performance of this sector has expanded, mostly to get the benefits of pension abundant and which were not compatible with the public service they have provided. It is necessary to increase direct public expenditures on financing programs for small and medium-sized enterprises, which have been allocated six trillion and shorten the period of repayment to enable recovered and recycled in the economy in the form of new loans and activating the role of the multiplier and expansion in this program by finding financing partnerships with the private sector last and directed towards companies with public sector reform under contracts based on market rules in their work. Which will achieve two main out of it, the first is to break the liquidity trap by employing money multiplier factor and the second will work to alleviate the burden of spending power of the government to public sector institutions if it is able to integrate into partnerships with the private sector. The second way to reduce the deficit of any budget is by increasing public revenues, which comes in turn often to reduce public expenditures, which represents truncated part of the user's national income to cover public spending, which may be in light of the reality of the work of government institutions and mechanisms of administrative structures are less productive than private spending. Should the general budget to focus on spending on income-generating government aspects and increase, for example, the state's non-oil revenues from real estate State fees and service departments and enhance its revenue and collected which is not found in the budget approved for 2016 with directing public expenditures in most of the estimated revenues to 84 trillion dinars towards expenses the current estimated amount of more than 83 trillion dinars to keep the financing of investment spending and the planned 30 trillion in the hope that is funded from sources deficit in the budget to cover an internal and external borrowing and amounts retained cash in the Federal Ministry of Finance account and the ratio of expected savings from the increased sale of crude oil prices Source or increase crude oil exports. * Iraqi academic
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