Parliamentary economic: the abolition of the petrodollar came because of the decline in oil revenues

Parliamentary economic: the abolition of the petrodollar came because of the decline in oil revenues


 Baghdad / Zahraa al-Jassim

At the time considered the oil and gas committee in the provincial council of Basra, the proposal to amend the paragraphs of the federal budget to cancel the paragraph on petrodollar revenues and reduce the budget of the development of the provinces will lose the province more than 90% of its budget and make it very embarrassing to the companies executing projects, The amendment came on the basis of the decline in the revenues of the state financial result of the collapse of oil prices and low returns, at the time emphasizes an expert on economic affairs need to be partially modified in the budget paragraphs relating to petrodollar revenues, commensurate with the size and production of the corset A that the disbursement of funds under the supervision of the government, because the basic problem is how to manage these funds through Iyad fair.
At the time considered the oil and gas committee in the provincial council of Basra, the proposal to amend the paragraphs of the federal budget to cancel the paragraph on petrodollar revenues and reduce the budget of the development of the provinces will lose the province more than 90% of its budget and make it very embarrassing to the companies executing projects, The amendment came on the basis of the decline in the revenues of the state financial result of the collapse of oil prices and low returns, at the time emphasizes an expert in the economic need to be partially modified in the budget paragraphs relating to petrodollar revenues, commensurate with the size of the province and production, That the disbursement of funds under the supervision of the government, because the basic problem is how to manage these funds through Iyad fair.
Under the petrodollar revenues paragraph, the oil producing provinces are given $ 5 per barrel of oil, in addition to calculating the financial ratio of the natural gas produced in the province, which is included in the Federal Budget Law has not stabilized as it has been reversed, Only one, amid the objection and protest and the threat of oil-producing provinces, which forced the return to the amount of five dollars, to return at the beginning of the adoption of the budget of 2017 attempts to replace the five dollars (5%) of each barrel of oil, which is contrary to the text of the petrodollar, Other Tdjaja deputies and a threat to the provinces of Basra, Maysan , Dhi Qar and Wasit not vote on the budget at the time the law.
Chairman of the Committee on Oil and Gas in the province of Basra, Ali Shaddad Knight, believes that the recent proposal to amend the paragraphs of the federal budget, which includes the abolition of the paragraph on petrodollar revenues and reduce the budget of the development of regions will lose the province of more than 90% of its financial budget and make it a major embarrassment to companies executing projects, In recent press statements, that the province of Basra relied heavily on petrodollar imports in the preparation of its annual plan, especially that the development budget of the regions amounted to (38 billion dinars), while the allocations of petrodollars amounted to (297 billion dinars) and in light of the recent amendment, The Basra Governorate has no more than 10% of its financial benefits, revealing at the same time the formation of a joint committee of the provincial council and the Diwan of the province and the representatives of Basra in the House of Representatives to discuss the issue with the Prime Minister and to inform him of serious repercussions on the general situation in the city of Basra.
But the member of the parliamentary economic committee Najeeb Najib confirms in an interview for (the extent), that the reasons for the amendment of the paragraph on petrodollar revenues and reduce the proportion of the development of regions in the amended budget law for the year 2017, due to the lack of financial revenues of the state as a result of the collapse of oil prices and low oil revenues, , That this is the real reason for the government to make any amendment or non-implementation of the petrodollar in the public budget and not unfair as seen by some.
Najib points out: That the issue of the semi-oil producing provinces is not a barrier, and we are with the half of those provinces being environmentally damaged because of the containment of a lot of oil and gas reservoirs, therefore must be the establishment of important projects in accordance with the huge oil reserves, and should be attention to the infrastructure being And we are with the application of the budget law, which stipulated five dollars per barrel, according to the petrodollar revenues of the provinces, but we emphasize that the real problem behind the non-payment of funds to these provinces or an adjustment of budget paragraphs due to the lack of oil revenues, Following the lack of financial state revenues.
For his part, the economic expert Bassem Antoine said in an interview with (the extent), that the main problem is how to manage these funds and how can be given in the hands of impartial, on the other hand, the provincial councils had received a lot of money, but did not improve it , But added: However, we believe that certain sections should be allocated with an audit by the Office of Financial Supervision. These funds should go to profitable places to pay obligations, whether to contractors, private sector or government projects, until the problem is solved radically.
Antoine continues: Yes, there may not be an amount to meet all the obligations, but it is difficult to spend part of these amounts to the provincial councils, especially since Basra is an oil producing city and has a very important role in the process of providing the state budget with huge financial revenues, Projects and obligations and this requires that the amounts distributed on a fair basis and according to the benefits of each province, and whether it is productive or not productive and certain rates, according to the number of population or according to the number of projects and existing commitments, so there is justice in the distribution of petrodollars, Modification of the budget paragraphs in question p And in proportion to the size of the province and its production and that there is supervision by the government in the process of disbursement and to spend on places and projects really useful for the province to ensure that not waste.
To that, specialists see that the handover of the oil-producing provinces of petrodollars can help to invest these amounts in dealing with the economic problems they suffer and to improve their economic and living conditions, which can be used to rehabilitate the infrastructure of these governorates of electricity, water, transport, communications and housing. , And the establishment of various economic projects will help in the absorption of unemployment and reduce its proportion in the provinces, and this will affect the advancement and development of economy.
The federal budget of Iraq, for 2017, 100 trillion (84.7 billion dollars), and the expected deficit 21 trillion (17.7 billion dollars), which required the government to add the supplementary budget.


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