Saleh: The 2018 budget was built on the basis of fiscal consolidation

Saleh: The 2018 budget was built on the basis of fiscal consolidation

02/01/2018 0:00

BAGHDAD / Shokran Fatlawi

after the face of Prime Minister Dr. Haider al - Abadi, a review of the proposal of 2018 budget year, and reduce operational expenses, with " the need to secure international and national obligations in the repayment of loans and benefits entitlements and promotion of non - oil revenues through the activation of different activities and increase productivity," the financial advisor to the prime minister revealed the appearance of Mohammed Saleh , said that " the budget 2018, which raised the Council of Ministers to the House of Representatives, was built on the basis of the so called "fiscal consolidation" necessary expenditures, enhance resources non- oil, reduce borrowing and the accumulation of debt, stressing the importance of the trilateral financial sustainability. " Financial consolidation

Saleh stressed in his speech to the "morning" that "any manipulation of those elements because the country back to square one , especially the oil tremor failure long - term effects, as well as the accumulation of debt , " stressing " the need not to return to the loose spending again if there was any improvement in oil prices. "

He stressed " the importance of continuing fiscal discipline and cautiously until the high debt incurred during the past years absorption, as well as the importance of directing a lot of resources to revitalize the infrastructure that influenced many of them over the years for one reason or another." Investment allocations and suitability of investment allocations, the country 's need Saleh said " the investment budget only divided by the energy sector and infrastructure and any surplus sector checks used in the approval of supplementary projects plus addressing the debt , " asserting that "any improvement in oil prices outside of the decision in the federal budget 46 dollars a barrel , with a crew of export 3.88 barrels divided into two parts , the first goes to pay off debt and not to borrow, especially since the budget deficit is estimated at 13 trillion dinars covered by self - financing, while have to go hard the other towards the activation of the outstanding projects and strategic projects that did not find an opportunity late Nivha funding because of indigestion. " Financial Planning and added that "any trends towards expansion of the operational budget is dangerous and Ainsjm with proper financial planning long - term trends adopted by the state and return to the correct bases in the face of future shocks that the oil market is calculated the consequences." Saleh explained that " the installation of the budget because of the fixed expenses of the budget on top of salaries, wages, retirement and social welfare make up more than 50 percent of the budget expenditures, accompanied by the operation of state requirements, which constitute about 75 percent , as well as 25 percent of the investment budget , " stressing that "the Council Representatives must take into account the response to the debt and directing effort towards investment spending, particularly in the case of reconstruction and care infrastructure, according to priorities. " Meet the challenges and on how to address the challenges of the 2018 budget year , Saleh explained that "there is a case of understanding prevails within the Finance Committee at the present time to make it accommodate those challenges , " noting " the importance of taking into account that are facing the challenges away from placed near the elections and use them as an excuse election because the interest of the country 's interest supreme financial stability and sound is the most important interest of the citizen and the future of the country both ".saleh noted that" the orientations of the Finance Committee in general began properly in line with the government 's vision to offer the budget to the House of Representatives. " Oil prices member of the Finance Committee pros Hamadoun saw that " to continue the policy of austerity, comes as a result of the continuing financial crisis, saying that the rise in oil prices, recorded a surplus in the state budget, as well as deductions from employees ' salaries and taxes that were levied, funded by the popular crowd and displaced persons requirements." Earlier reports confirmed that the 2018 budget year, no different from the current year in the guidelines, only a few minor changes to the special items, such as how compensation of public debt fund, in addition to some of the paragraphs supporting your local product sector at the expense of the importer, also noted that the deficit in the budget may be Cassapgaha and not necessarily that there is a rise in the deficit ratio. s