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Forecast decline in purchasing power
Date: Monday, 02/01/2012 10:27
□ Baghdad / follow-term economic
forecast for the economy and investment parliamentary reduced purchasing power in the country in 2012, giving the reasons not to increase the salaries of employees, retirees and increase the operating budget at the expense of investment in the budget in 2012. The experts confirmed that the late adoption of the current year budget amounts to cause a loss of $ 230 million a day.
The Ministry of Finance has announced that, beginning this month that the budget of 2012 will not see any increase on the salaries of employees or retirees to intercept the International Monetary Fund on this matter.
A member of the Committee of Economy and Investment Amer winner for "Twilight News" The increase in the operating budget caused by the prevention of increase in salaries employees and retirees, and also lower investment budget will stop providing jobs for the unemployed, which will lead to weak purchasing power in 2012, "explaining that" if not to enter the investing companies and investors to the country, will increase the unemployment rate within the community. "
The International Monetary Fund warned the government of the high the operating budget year after another, and threatened to raise support for the budget if it does not reduce the operating budget next year, and lack of commitment to his comments and instructions.
and draw the winner out that "the continuing political crisis and the deterioration of security conditions impede the entry of firms invested, and will have negative repercussions on the living conditions of the individual." , calling on the blocks to accelerate the resolution of the political problem of the current and to maintain the public interest to party interests and Class for the advancement of services and the elimination of unemployment in the country. "
The government has approved the federal budget for 2012, valued at $ 100 billion, an increase of 22 percent from the previous year, a shortfall amounted to about $ 13 billion, as revealed the parliamentary finance committee from meeting the budget Alchglah 70% of the budget in 2012. In the meantime, described the business elites, and parliamentary delays in approving the state budget for the current year 2012 loss of the substantial financial causing overwhelm the national economy.
A member of the Lower House Speaker Abdul Hadi al-Hassani's (Baghdadiya News) that the adoption of the General Budget Law is on time early benefit scene service and on reconstruction in Iraq, indicating that the delay in approval lead to the loss of the country, including approximately (230) million dollars a day, according to his expectations.
Hasani said: that a delay in the ratification of the budget also lead to confusion in part the investment of the budget, especially that we are working one-third of the budget for investment and other two-thirds are for operational , leading to cessation of new projects.
and hinted that the political repercussions usually lead to a delay in adoption of the budget.
to the said economic expert, Subhi al-Badri's (Baghdadiya News): that Iraq is losing more than $ 230 million a day due to delay adoption of the budget public .
He attributed Badri failure to approve the budget at this time not to the parliament meeting, resulting in the result to paralyze life and stop the development of the country for each day of delay in approval.
In turn, financial expert, Farouk Ramadan's (Albgdaah News) said the new investment projects stalled and will cease to While approving the budget law, pointing out that the continuation of existing projects small amounts granted to the ministries to complete those projects.
He Ramadan said any delay in approving the budget will reflect negatively and emotionally to the community, especially that today the House of Representatives does not turn the perpetrator in the most important paragraph, but the approval of general budget of attributing this to his preoccupation with the problems and political polemics, and security.
He pointed to the existence of the proportion of 1.0% is possible to act by the ministries of the projects already in place and either new projects are affected by this impact directly if you stop it is the style followed in previous budgets, if the delay in approval, as given monthly rate to act by the ministries for their projects on hold.
For his part, said the expert on gnathion NA said the delay in approving the budget, the general delay the disbursement of state funds in addition to stop the movement of investment, which does not allow the state disbursing to contractors without the ratification of the budget and allocations and the amounts allocated to the projects it prevents the exchange benefits contractors, noting that the damage comes in the first place on the citizen to the highest concept of political economy.
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