Budget requirements do not cover the lack of clarity criteria estimates 17/01/2012

Budget requirements do not cover the lack of clarity criteria estimates

17/01/2012

Specialists agree on the need to develop a new methodology for the preparation of
BAGHDAD - Yasser incumbent - Haidar al-Rubaie
Re-seminar organized by the Iraqi Institute for economic reform and which carried the title of the federal budget for 2012 and the strategic option of the Iraqi economy calls to mind the annual recurrent need to develop a new methodology for the preparation of the budget because of the lack of clarity in the criteria used in the preparation of estimates and customizations. The whole number of experts involved in the ring and the inadequacy of the capacity of budget allocations for this financial year to satisfy the various economic sectors because of the limited public revenues compared to the magnitude of operational spending.
They attributed the cause to the absence of a general economic strategy agreed reflected on the lack of clarity of the budget strategy to strive for economic reforms, especially reform of the policy of government support and private sector development.
Value of the study made by the Iraqi economic thinker Dr. Kamal Al-Basri, the focus of debate on the economic cycle, stressed the need to raise the human development indicators of the strategic target in the current phase and found that the development of other economic sectors should be by encouraging and attracting direct investment and indirect.
The study focused on the performance of the budget depends on Baltuaqat and political repercussions of the political process that delayed the achievement of reforms are important, what makes her performance captured the complexities of government measures and overlapping of powers and the scarcity of technical competencies.
She stressed the need to take the necessary measures to lift the restrictions and the application of the central requirements of good governance of the rule of law in order to achieve human development occurs a quantum leap in the Iraqi economy and the shift according to the international experiences can not be achieved the absence of good governance and the rule of law.
After a detailed presentation for the workshop and its objectives and mechanism of action by a member of a board of trustees at the Institute Manaf jeweler has been read and study with the mass demonstration, and then opened for discussion.
The first speech of the economic thinker Dr. Mahdi Al-Hafiz, who confirmed the vital importance of the budget lies in the fact that an economic tool to ensure effective distribution of financial resources properly and achieve social and development objectives in accordance with the policy of the political system and its principles.
He pointed out, for Iraq, there are dilemmas such as if the circle chronic unemployment (and the ratio is accurate between 20-30 percent) and low standard of living and lack of public services and the spread of corruption and cronyism on a large scale.
Then there is the issue of income distribution according to the operating budget (about two-thirds). What about the peace salaries and wages for all state employees (3.5 million) How can I address this issue, and what about the desired economic reform and policy development of the unified state. Do you have one policy covering all parts of the country? These important questions need to be answered. What about income taxes? Is it true that the country continues to tax pot is very limited? What saves the people if a disaster occurred and stopped the transfer of oil?

He said the budget preparation methodology I still think that the methodology used to suffer from significant shortcomings. How is the preparation of estimates for the various ministries and bodies all? It is clear that the logic of traditional (bureaucratic) the former is dominant.
It is not clear to us what criteria are used in the preparation of estimates? Eight overall economic outlook to be adopted as a guide to budget preparation is aware and non-binding. This is a serious economic imbalance, we note that varying proportions of the budget submitted by the various ministries and agencies and are included in the expenditure section, in the country there are allegations and complaints about corruption and its spread and the inaccuracy or delay implementation. What the way to combat corruption and cronyism? There are some who say that corruption is one of the mechanisms of governance.
He noted that the budget provided an estimated revenue of about (100) billion dollars. As (90) percent of oil revenues is a big budget comes after Saudi Arabia.
Are there guarantees to be free of this dilemma? What about the other productive sectors (non-oil), agriculture, industry and others. Is it possible that the country can continue its growth is the diversity of economic and financial? The figures provided to us put these sectors at the site later after the energy and security, defense and education ... And others. Can not lag or delay the issue of diversity to a later time. It is a real guarantee for the safety and prosperity of the economy.
Regarding external liabilities - is still a list of sanctions against Iraq as the country is still subject to Chapter VII of the Charter of the United Nations. We pay 5 percent of the proceeds of Kuwait after Iraq had to pay more than (20) billion dollars so far. Why Atoda this issue as a problem with Kuwait and resolved in the Security Council. Like the border issue and other outstanding issues?
Then there are foreign loans. Valmoisna is committed to complete the $ 4.5 billion loan from the International Monetary Fund and a loan to another (2) billion dollars. The question of why Iraq continues to take foreign loans and continue to be subject (sanctions), such as those related to Kuwait?
With regard to plan the distribution of resources: - The state is uniform and there is a serious oversight on the exchange and accounts. Corruption and wide .. Here comes the issue of Kurdistan and the provinces. It was decided earlier that the share of Kurdistan 17 percent of expenditures. Then mix this with the resources allocated for investment across the country, leading to increase this percentage.
He stressed that the final accounts of a chronic problem and solve it now. Wondering how can we discuss the annual budget is a summary knowledge of the accounts for the years in the budget, referring to the Kurdistan region has not provided accounts from 2004 until now? The promise of an explicit violation of the Constitution which requires discussion of the budget and final accounts with some.
He said: We need answers to specific questions, as the deficit in the current budget of about $ 14 billion and be covered from foreign loans (IMF + WB).
What about the potential increase in the price of oil? What about the amounts retained in the DFI (Development Fund for Iraq)? What about the deficit the past? We have no information. What about the external reserves of the Central Bank, which is estimated now to (60) billion dollars? Why not be used to meet part of the deficit?
He said: we do not have accurate data about tracks spending in the country as a whole. There are those who say that the percentage of spending in some provinces that did not exceed 30 percent. Burdened with a variety of colors and styles of corruption and manipulation operations. How safe to the safety of spending unless the installation of a strict and balanced in this context?
The conclusion of the angle is, that the budget presented now raises many concerns and questions, and ask for urgent need to address the financial situation and the system of budget preparation with the aim to promote development and reform and preserve the interests of the people of all classes and secure a stable life for them all.
The second intervention was the Associate Secretary General of the Council of Ministers Obeid replaced Freeh warned that the continuation of budget preparation in this way, referring to get messy in preparation.
He said Iraq needs a revolution in the financial and administrative reform of the system fails Avtaaly budget and accounting system.
He noted that all international organizations that worked with the Ministry of Finance have not been any development in the work or the budget accounting system is the latest chaos in these two important events.
He said with this fact, the Ministry of Finance to the lack of specialized technical equipment able to discuss the budget process to discuss and analyze their data.
Freeh revealed problems associated with budget preparation, called the character of «innovation» may have accompanied the budget during this period and the year 2004.
He noted that the recycling of funds is heresy distanced Balvashl and not at fault for punishment, but rewarded him for his failure in the rates of low achievement and recycling of funds in the following budgets.
He warned that the style of petro dollars and the allocation of duties to the provinces may affect the achievement of the goals of economic losses, because these ratios was not a financial goal, according to Freeh.
He explained that the budget Zero is the way of advanced work, has formed a committee to work which did not take this the state of a step, pointing out that the United States has left the implementation of this budget, the zero of the difficulty of preparation and wondered how the case and that it is the balance in Iraq, graduate junior high industry for example, in the province Fulani or Fulani ministry.
Thus, people associate general secretary of the many obstacles and problems associated with budget preparation, renewed his call for the need to reconsider the methodology for the preparation of the budget.
The Deputy Governor of the Central Bank of d. The appearance of Mohammed Saleh has implications for intervention are important aspects of the comparison of the rate of default in Iraq than in the Gulf states, for example, pointed out that Iraq's dependence on the price of $ 85 per barrel for the calculation of the budget is different from the assumption that the Gulf states, which reaches 58 to $ 60.
He said that the reason is that the absorptive capacity of countries of the Gulf of liquidity is weak and most of these revenues shall be transmitted to the sovereign funds.
He noted that there are signs of catastrophic financial management, we can touch the implementation rate, which amounted in the budget year 2011 by around 3 percent, and this reflects the failure of performance, and weaknesses.
The benefit referred to the monetary reserve of 60 billion dollars that he also threatened by the pressure in the consumer markets, and that reflects the distortions economic situation.
He said: There are internal and external causes, internal is the inability to implement the investment budgets, either external causes goes back to the survival of Iraq under Chapter VII of the most serious reasons until the moment the list is an indication of the existence of the prevention and prohibition on the entry of big companies to Iraq.

[You must be registered and logged in to see this link.]