Iraq Wrangling with $26.6bn Budget Deficit
December 3, 2016 in [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.]
December 3, 2016 in [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.]
Iraq’s parliament will meet Dec. 1 to continue hashing out a draft of the 2017 general budget, which currently includes a deficit that will require the country to seek out non-oil income, attract investments and eliminate alleged corruption.
So far, the draft law [You must be registered and logged in to see this link.] at 102 trillion dinars (about $85 billion) with a projected deficit of $26.6 billion.
The [You must be registered and logged in to see this link.] have been hammered by low oil prices, the war against the Islamic State (IS) and, according to a citizens group, significant government waste.
Much of its budget will depend on the price of oil. Iraq received good news today when OPEC agreed to cap oil production. After two years of prices that sometimes dropped below $50 per barrel, OPEC now expects that figure to reach $55-$60, the [You must be registered and logged in to see this link.] reported. OPEC has not always [You must be registered and logged in to see this link.] on its promises, however.
Parliament is trying to resolve disputes over a number of items, including the budget for the [You must be registered and logged in to see this link.] (PMU). The [You must be registered and logged in to see this link.] Nov. 26 to make the Iran-backed PMU into an official government military force. Shiite parliament members supported the move, but the Sunni minority boycotted the vote.
On Aug. 31, the proposed budget was amended to increase the [You must be registered and logged in to see this link.], which had amounted to about 6 trillion dinars ($5 billion) in 2016, but the PMU leadership said that was not enough to cover all necessities. [You must be registered and logged in to see this link.], a member of parliament’s Economics and Investment Committee, criticized the PMU on July 12, telling the media, “Allocating 25% of the state budget to the army and the PMU overburdens the budget and adversely affects the economy.”
[url=https://www.addtoany.com/share#url=http%3A%2F%2Fwww.iraq-businessnews.com%2F2016%2F12%2F03%2Firaq-wrangling-with-26-6bn-budget-deficit%2F&title=Iraq Wrangling with %2426.6bn Budget Deficit][/url]
Other proposed allocations also are controversial. The Finance Committee examined the budget in October and concluded it did not adequately address [You must be registered and logged in to see this link.]. Members proposed [You must be registered and logged in to see this link.] to address citizens’ needs by providing support for low-income workers, creating jobs and stimulating investment, but such changes have not been made.
Although the budget allocates $20 billion for [You must be registered and logged in to see this link.], it halts investments in ministries except for the [You must be registered and logged in to see this link.] ministries. The cost of the [You must be registered and logged in to see this link.] is responsible for a large part of the deficit, as 12 trillion dinars ($10 billion) were allocated to the Ministry of Defense.
The [url=http://www.alaalem.com/index.php?news=%E3%CE%C7%E6%DD %E3%E4 %C7%E4%DA%DF%C7%D3 %C7%E4%CE%DD%C7%D6 %C7%D3%DA%C7%D1 %C7%E1%E4%DD%D8 %C7%E1%DA%C7%E1%E3%ED%C9 %DA%E1%EC %C7%DE%CA%D5%C7%CF %c7%e1%da%d1%c7%de&aa=news&id22=15143]drop in oil prices[/url] forces the budget to depend on loans to cover the salaries of employees and retirees as well as to compensate the families of those who were killed in the [You must be registered and logged in to see this link.], in addition to covering the costs of fighting terrorism and providing farmers’ entitlements. [You must be registered and logged in to see this link.], a member of the Oil and Power Committee, has warned that unless parliament is cautious, the country could go bankrupt next year if oil prices continue to drop.
This economic bump in the budget was noted by Ahmed Kanani, head of the Economics and Investment Committee, when he told Al-Monitor, “Oil prices have thwarted a lot of projects and plans included in the 2017 budget.”
Kanani added, “The deficit caused by the lack of non-oil revenues and the costs of the ongoing war against IS since 2014 forced important ministries, such as the Ministry of Defense, to rely on the allocations [taken from] less important ministries to cover the cost of its projects.”
[You must be registered and logged in to see this link.], a researcher, correspondent and head of the economics department at Iraqi Al-Sabah newspaper, told Al-Monitor, “An economic recovery in light of the financial hardship suffered by Iraq as a result of the drop in oil prices in global markets seems impossible.”
[url=https://www.addtoany.com/share#url=http%3A%2F%2Fwww.iraq-businessnews.com%2F2016%2F12%2F03%2Firaq-wrangling-with-26-6bn-budget-deficit%2F&title=Iraq Wrangling with %2426.6bn Budget Deficit][/url]
According to Thaghab, the solution lies in “creating an environment that can attract global investments with a lot of capital and advanced technologies. Global corporations are aware of Iraq’s economic capabilities and plentiful natural resources.”
He added, “The country is deemed rich, and this is one of the most important elements that guarantee the rights of international companies, especially as the volume of work in Iraq is very large and accommodates a lot of specialized and internationally classified companies.”
Because of that, Thaghab believes “Iraq is capable of gradually achieving economic development,” especially if it paves the way for investment projects in the industrial, agricultural and tourism sectors, which will “pump billions of dollars into the federal budget.”
[You must be registered and logged in to see this link.], financial adviser to the prime minister, confirmed Nov. 3 to the media that the 2017 budget is in line with [You must be registered and logged in to see this link.] requests to develop non-oil resources and other sources of income.
The new budget is also expected to reduce expenses through a project that in some ways resembles a pension or severance pay incentive. Under the program, public employees who have worked at least five years in their jobs can [You must be registered and logged in to see this link.] for five years, but there is no guarantee that their jobs will still be there for them after that period.
[url=https://www.addtoany.com/share#url=http%3A%2F%2Fwww.iraq-businessnews.com%2F2016%2F12%2F03%2Firaq-wrangling-with-26-6bn-budget-deficit%2F&title=Iraq Wrangling with %2426.6bn Budget Deficit][/url]
Other measures are also expected. These include reducing the number of cars allocated for officials, reducing by 25% the staff of 4.5 million public employees, closing consulates and merging all of the trade, military, cultural and diplomatic missions with embassies. These measures are aimed at containing [You must be registered and logged in to see this link.].
The Citizen Alliance lashed out Nov. 14 at the House of Representatives for the proposed allocation of 50 billion dinars ($42 million) to the president’s office and 39 billion dinars ($33 million) for a plan to collect illegal weapons from civilians.
Najib told Al-Monitor the solution lies in “developing public and private sectors, enacting laws that can attract local and international private companies, cutting unnecessary expenditures, adopting a tax policy that encourages investment, and stimulating domestic products so they are up to the level of imported goods.”
A main consideration is safeguarding Iraq’s money and directing the budget toward the goal of getting rid of financial and administrative corruption. About $361 billion went missing from Iraqi budgets between 2004 and 2014, which led the Iraqi government in 2016 to sign a memorandum of understanding with the United Nations to [You must be registered and logged in to see this link.].
Today at 5:24 am by Rocky
» utube MM&C 3/26/24 Iraqi Dinar - IQD Update - Strength Dinar - Automation ASYCUDA - World Bank - D
Today at 5:21 am by Rocky
» Amending the Health Professions Law “robs” scientists of the central appointment 3 years after it wa
Today at 5:20 am by Rocky
» Is the “blessings package” that Erbil paid to the citizens of Kurdistan related to the elections?
Today at 5:19 am by Rocky
» Exceeded 5,000 projects.. Allocating 10 trillion dinars to support governorate reconstruction plans
Today at 5:18 am by Rocky
» “His need no longer exists.” Parliamentary Finance confirms the necessity of returning the retiremen
Today at 5:17 am by Rocky
» To communicate with the bases... 12 directives from Al-Sadr, including blocking numbers for non-gove
Today at 5:15 am by Rocky
» In an interview with "Baghdad Today"... an Iranian researcher reveals the importance of Haniyeh's vi
Today at 5:14 am by Rocky
» After it was 63 trillion in 2023... the 2024 budget deficit will rise to 80 trillion dinars
Today at 5:13 am by Rocky
» Parliament reveals the date of the first evaluation of the governors and determines the party respon
Today at 5:11 am by Rocky
» The President of the Republic informs Al-Araji and Al-Basri: Momentum must be mobilized to eliminate
Today at 5:10 am by Rocky
» Can the Federal Court sue others? A legal clarification of its response mechanism to abuse
Today at 5:09 am by Rocky
» Despite promises to soon stop burning gas.. What is the secret behind Iraq renewing the Iranian gas
Today at 5:07 am by Rocky
» Advisor to Al-Sudani: The dollar is on the way to further decline, and 70% of Iraqi traders have ent
Today at 5:06 am by Rocky
» Iraq exported more than 99 million barrels of oil last February
Today at 5:04 am by Rocky
» Barzani “gives good news” to Kurdistan employees: salaries, land, and loan exemptions
Today at 5:03 am by Rocky
» Alia Nassif: Nour Zuhair returned to the port of Umm Qasr to make deals.. An influential Shiite forc
Today at 5:02 am by Rocky
» The Prime Minister announces the movement of nearly 500 stalled projects
Today at 5:00 am by Rocky
» A government strategy to enhance investments.. Iraq is on the verge of a new era of economic develop
Today at 4:59 am by Rocky
» Ranging between 20% and 50%.. The Kurdistan government decides to reduce service fees, customs dutie
Today at 4:58 am by Rocky
» Al-Sudani: The reform approach in the security services is an integral part of reform in other secto
Today at 4:56 am by Rocky
» Everyone in Iraq wants the Sudanese visit to Washington to be successful, even the factions!
Today at 4:55 am by Rocky
» Sources and experts expect the agenda.. in his bag is the Baghdad dollar and the factions’ truce, bu
Today at 4:54 am by Rocky
» The decision to raise gasoline prices arouses the ire of drivers...a reminder of the large demonstra
Today at 4:53 am by Rocky
» Parliamentary services: 3 important hospitals in Baghdad will enter service at the end of the year
Today at 4:52 am by Rocky
» Iraq signs a contract to supply Iranian gas for a period of five years
Today at 4:50 am by Rocky
» Parliament adds a voting paragraph on amending the Penal Code to its agenda
Today at 4:49 am by Rocky
» His political advisor: We are not afraid of Sudanese entering the elections alone
Today at 4:48 am by Rocky
» Parliamentary services explain the reasons for the rise in real estate prices in Baghdad
Today at 4:46 am by Rocky
» Attia, criticizing the government's decisions: "The citizen's feathers will be ruffled without servi
Today at 4:45 am by Rocky
» Parliamentary Communications: Zain Iraq and Asiacell did not pay their debts
Today at 4:44 am by Rocky
» The Governor of Karbala announces the imminent establishment of the largest industrial city in the c
Today at 4:43 am by Rocky
» A government determination to end the issue of displaced persons in the middle of this year
Today at 4:42 am by Rocky
» Iraq buys gas from Kurdistan to generate electricity
Today at 4:41 am by Rocky
» Parliamentary signatures to include an amendment to the internal regulations to decide the choice of
Today at 4:40 am by Rocky
» In Basra.. a demonstration against foreign workers in Iraqi companies (video)
Today at 4:38 am by Rocky
» Al-Samarrai: Presidency of Parliament is an entitlement to the constituents, and calling it a “frame
Today at 4:36 am by Rocky
» Electronic food supplies in 6 governorates... covering 11 million Iraqis and “writing off” about 700
Today at 4:34 am by Rocky
» Corruption of the Ministry of Transport.. Representatives express their surprise at the minister’s s
Today at 4:32 am by Rocky
» The biggest supporter of the invasion of Iraq.. The death of former US Senator Joe Lieberman
Today at 4:31 am by Rocky
» Iraq is ranked “late.” A list of the most and least safe Arab countries for women
Today at 4:30 am by Rocky
» The Council of Ministers exempts the Gulf Interconnection Authority from guarantee fees: it is a gov
Yesterday at 7:48 am by Rocky
» The Iraqi government raises the size of the 2024 budget, and Parliament is “surprised”
Yesterday at 7:46 am by Rocky
» Popular Movement: We have many economic options away from American hegemony
Yesterday at 7:42 am by Rocky
» The Oil Parliament stresses the need to transfer part of the revenues to the producing governorates
Yesterday at 7:41 am by Rocky
» It will cover 14 regions in eastern Iraq.. A deputy reveals the “border electricity” project
Yesterday at 7:40 am by Rocky
» Experts Warn Mass Migration Threatens US Food Security
Yesterday at 7:37 am by Bama Diva
» Al-Fateh: America occupies Iraq through agreements
Yesterday at 7:37 am by Rocky
» Anger in Iraq over a "sudden decision"... and a reminder of a "general strike" that paralyzed the co
Yesterday at 7:34 am by Rocky
» Parliamentary Committee: Parliament is discussing today a decision that “disturbed” the Iraqis
Yesterday at 7:33 am by Rocky
» Ministry of Electricity: Our production will reach 27 thousand megawatts by May
Yesterday at 7:31 am by Rocky
» Diagnosing the “most important” problems in the oil file between Baghdad and Erbil.. What is the rel
Yesterday at 7:30 am by Rocky
» The Iraqi Fiqh Academy and the Sunni Endowment issue a fatwa to pay Zakat al-Fitr
Yesterday at 7:28 am by Rocky
» The National Bank of Iraq continues its digital transformation by launching its new banking system a
Yesterday at 7:26 am by Rocky
» Parliamentary Investment and the Central Bank are discussing the housing initiative
Yesterday at 7:25 am by Rocky
» The Prime Minister announces the restart of 500 suspended projects
Yesterday at 7:23 am by Rocky
» Al-Barti assesses the region's employees: Your salaries are insured and will be paid after resettlem
Yesterday at 7:21 am by Rocky
» Iraqi-American discussions in anticipation of the Sudanese visit
Yesterday at 7:20 am by Rocky
» Iraq and Turkey hold meetings in Ankara to discuss technical issues related to the development road
Yesterday at 7:17 am by Rocky
» A government parliamentary agreement to support budget revenues and governorate allocations for inve
Yesterday at 7:16 am by Rocky
» Oil: The gas sector is witnessing great development
Yesterday at 7:15 am by Rocky
» A Kurdish-French agreement to develop trade and economic relations
Yesterday at 7:13 am by Rocky
» Exchange companies in Mosul demand that they be entered into the currency selling window
Yesterday at 7:12 am by Rocky
» Minister of Finance to the Czech Ambassador: Iraq enjoys a more attractive business environment and
Yesterday at 7:10 am by Rocky
» Iraq and Britain sign an agreement in the field of the stock market
Yesterday at 7:08 am by Rocky
» A new parliamentary meeting with the Minister of Finance to discuss these files
Yesterday at 7:07 am by Rocky
» A parliamentary committee discusses these files with the Director of the Projects Department in the
Yesterday at 7:06 am by Rocky
» Central Bank sales exceed $257 million today
Yesterday at 7:05 am by Rocky
» Parliamentary Finance and the Minister of Planning discuss governorate allocations and investment bu
Yesterday at 7:04 am by Rocky
» Planning: We are discussing with representatives of the World Bank the work plan of the Social Fund
Yesterday at 7:02 am by Rocky
» Parliamentary meeting with the Governor of the Central Bank and the Director of the Real Estate Bank
Yesterday at 7:01 am by Rocky
» Parliamentary Finance: The 2024 budget reached 228 trillion dinars
Yesterday at 6:57 am by Rocky
» Barzani "gives good news" to Kurdistan's employees: salaries, land, and loan exemptions
Yesterday at 6:57 am by Rocky
» Parliamentary Economy: The decision to raise fuel prices targets this class
Yesterday at 6:54 am by Rocky
» The President of the Republic: Iraq is an important investment environment
Yesterday at 6:53 am by Rocky
» From the accounts of Saddam's Republican Guard... Iraq returns approximately 7 billion dinars to the
Yesterday at 6:52 am by Rocky
» Al-Abadi: Muqtada al-Sadr did not leave politics.. He reached a dead end
Yesterday at 6:49 am by Rocky
» Nassif: The leaders of the framework abandoned Al-Sudani because of his recent successes
Yesterday at 6:48 am by Rocky
» Baghdad stresses the continued danger of ISIS and the importance of Washington's efforts to combat i
Yesterday at 6:47 am by Rocky
» Parliamentary Oil: It is necessary to transfer part of the revenues to the oil-producing governorate
Yesterday at 6:45 am by Rocky
» The Sudanese government zeroes in on the legacy of its predecessors
Yesterday at 5:28 am by Rocky
» The Human Organ and Tissue Transplantation Law is ready for its second reading
Yesterday at 5:26 am by Rocky
» 1,500 active civil organizations in Iraq
Yesterday at 5:25 am by Rocky
» The position of Speaker of Parliament awaits decision
Yesterday at 5:23 am by Rocky
» Water for peace...the water crisis in Iraq
Yesterday at 5:21 am by Rocky
» Fiscal and monetary policies succeed in undermining the parallel dollar
Yesterday at 5:20 am by Rocky
» Kurdistan.. Attempts to circumvent the "Federal" decision and an invitation to the Baghdad governmen
Yesterday at 5:17 am by Rocky
» “Iraq warned the US Treasury to leave the dollar.” Parliamentary Finance: The exchange rate will con
Yesterday at 5:16 am by Rocky
» The Iraqi government issues new decisions
Yesterday at 5:14 am by Rocky
» Barzani: We will not give up our constitutional rights, and tomorrow we will take a decision that is
Yesterday at 5:12 am by Rocky
» A researcher in political and security affairs describes the decision to increase the price of gasol
Yesterday at 5:11 am by Rocky
» The Council of Ministers addresses the Finance Ministry to appoint the families of those who died du
Yesterday at 5:09 am by Rocky
» 100 thousand dinars as a “Eid gift” for retirees.. A parliamentary request before the Sudanese (docu
Yesterday at 5:08 am by Rocky
» Al-Sudani confirms that more than 490 projects have been moved and returned to work in record time
Yesterday at 5:07 am by Rocky
» Parliament reveals three facts about the decision to raise the price of fuel: It targeted “luxury” w
Yesterday at 5:05 am by Rocky
» In detail...the problems of the oil file between Baghdad and Erbil
Yesterday at 5:04 am by Rocky
» International skepticism about Iraqi agriculture... Modern irrigation succeeds, but it will not be e
Yesterday at 5:02 am by Rocky
» For those who love traveling by the Iraqi train... buy the ticket with your mobile phone and 50 new
Yesterday at 5:00 am by Rocky
» Regional and international challenges hinder the path of the Iraqi economy towards stability
Yesterday at 4:59 am by Rocky