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Experts: the budget of 2018 pressure on the citizen .. And political differences hinder its adoption
Baghdad / Fadia Al-Jawari
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Experts: the budget of 2018 pressure on the citizen .. And political differences hinder its adoption
Baghdad / Fadia Al-Jawari
A number of experts in the local economic affairs pointed out that the current year's budget 2018 is still confused and suffers from deficit and inflation. The economy is still quite rural. The political differences are hindering its adoption. Reforms are still stalled, On the citizen through deductions from salaries.
The expert on economic affairs Hilal al-Taan, the government is still hampered in the regulation of imports and out of dependence on oil, indicating that it still resort to patchwork solutions to reduce expenditures and increase imports, which shows its policy of confusion.
Hilal al-Taan added that "the government, during the preparation of the budget, especially the budget of 2017, they are wandering in the selection of imports," adding that "they tend to choose non-oil imports in options that are difficult to achieve, and if achieved, they do not achieve anything."
He added that "the choice of these solutions is evidence of the confusion and weakness of the government to find an appropriate formula to get out of the dependence on oil, pointing out that" there are options possible to move them, such as activation of tariffs and taxes on goods entering, but this requires several things, including control of the market and the imposition of severe penalties On trade and importers so as not to be affected by the citizen. "
He pointed out that "the government put in the budget law of 2018 several paragraphs, including increased tax deductions and increase taxes on the property and give a five-year conditional leave to employees, in order to reduce the deficit, which comes through the reduction of government expenditures, and all these steps are a patching solutions And irregular, "noting that" the differences of blocs and parties stand in the way of approval, and entered the new year, which is supposed to be the budget has been adopted because of the preference of the personal interest of parties and blocs at the expense of the citizen. "
Taan pointed out that "the trader is the one who controls the market and who controls the entry or non-entry of a commodity, who decides to impose a tariff or a tax on those goods or not, and this indicates a great weakness by the government, which makes Iraq, under Control traders ".
For his part, stressed economic expert Manaf al-Sayegh, "The budget of 2018 carries exaggerated estimates of non-oil imports, and the government is pressing the citizen to find ways to fill the deficit through taxation, collection, fees and others."
"The estimate of non-oil imports was about $ 11 billion," al-Sayegh said. "It is expected that the government will exert pressure on citizens in taxes, levies, fees, etc., because there is no real industrial or agricultural class that pays taxes regularly."
He noted that "the government reduced the estimated deficit from 26 billion in 2017 to 11 in 2018, to bear one-third on the collection of duties and taxes in compliance with the requirements of the International Monetary Fund."
"Many of the deficit figures were not real before 2014, but they became a real deficit after the significant drop in oil prices and the widespread spending in the war against terrorism, as well as corruption and waste of public money," he said.
Al-Sayegh said that "the Ministry of Finance instructed all ministries in the past to cover their needs through the use of the approved exchange mechanism, which is 112 to meet the non-adoption of the draft budget 2018."
In turn, said the Economic Committee of Representatives, the non-adoption of the budget caused by the delay of the Council of Ministers to send a draft budget law and synchronized with the beginning of the legislative holiday.
A member of the Economic Committee, Najiba Najib, "The reason that delayed the Council of Ministers to send the budget law to the House of Representatives, is the high oil prices have estimated the price of a barrel of $ 43, and now sold above the price of $ 65, which prompted the government to reduce the deficit to 13 trillion dinars after it was 23 trillion dinars. "
Najib expressed her dissatisfaction with the adoption of 12.6% of the region's budget of the 2018 budget, saying at the same time, it was returned in accordance with the formula "predominantly and absent."
She pointed out that "12.6 percent is not enough to pay salaries in general, because the region needs 889 billion dinars a month to pay, while the ratio will provide 450 billion dinars only."
And on the losses resulting from the delayed adoption of the budget, the member of the Economic Committee, the losses are not large because the origin of investment expenditures set for the establishment of service projects do not constitute more than 25% of the budget, the most of which loans and some of them ratified in 2017.
Noting that the sovereign expenditure took place Of the budget of 2018 to 45%, as well as the availability of degrees of employment but not able to cope with unemployment.
In turn, the member of the Legal Committee Haitham Jubouri, the mechanism of disbursement of the budget in 2018 every month until the completion of the adoption of the budget.
Jubouri said that "in the event of disruption of the budget, the government and all institutions and ministries of finance, the disposal of 1 to 12 of the total budget spent in this institution in the previous year."
He explained that "for example in the year 2017 is disbursed the total amount may be" billion "is disbursed in each month of the year to be paid 1/12 of the billion until the completion of the budget," stressing that "this measure legal."
It is noteworthy that the Ministry of Finance, authorized in the document ministries and departments not linked to the Ministry and the provinces and all councils, the powers of exchange during the month of January 2018 by (12/1).
This guidance comes to the delay of the House of Representatives in the adoption of the state budget for the year 2018, especially in the lists of parliamentary committees concerned to discuss.
According to the Ministry of Finance circular, the disbursement will be from the actual expenditures for 2017 or the preliminary estimates included in the budget bill 2017-2018, whichever is less related to salaries, allowances, wages, salaries, pensions, debt services and current expenses for the purpose of payment of security obligations and expenditures, .
It is noteworthy that the Financial Management Act of 2004 gave the government the power to exchange (12/1) for the previous budget for each month, ie, the Financial Management Law, if the non-approval of the budget law was signed or delayed, the previous budget is approved.
The project aims to regulate the movement of taxi vehicles in general and achieve high flow and reduce the traffic momentum in the ports of the provinces and eliminate the phenomenon of segmentation of lines and the indiscriminate loading of passengers from outside garages and the consequent negative effects, as well as justice in the loading sequence of vehicles Between all motorists and on all lines, and guaranteeing the rights of all.
Hilal al-Taan added that "the government, during the preparation of the budget, especially the budget of 2017, they are wandering in the selection of imports," adding that "they tend to choose non-oil imports in options that are difficult to achieve, and if achieved, they do not achieve anything."
He added that "the choice of these solutions is evidence of the confusion and weakness of the government to find an appropriate formula to get out of the dependence on oil, pointing out that" there are options possible to move them, such as activation of tariffs and taxes on goods entering, but this requires several things, including control of the market and the imposition of severe penalties On trade and importers so as not to be affected by the citizen. "
He pointed out that "the government put in the budget law of 2018 several paragraphs, including increased tax deductions and increase taxes on the property and give a five-year conditional leave to employees, in order to reduce the deficit, which comes through the reduction of government expenditures, and all these steps are a patching solutions And irregular, "noting that" the differences of blocs and parties stand in the way of approval, and entered the new year, which is supposed to be the budget has been adopted because of the preference of the personal interest of parties and blocs at the expense of the citizen. "
Taan pointed out that "the trader is the one who controls the market and who controls the entry or non-entry of a commodity, who decides to impose a tariff or a tax on those goods or not, and this indicates a great weakness by the government, which makes Iraq, under Control traders ".
For his part, stressed economic expert Manaf al-Sayegh, "The budget of 2018 carries exaggerated estimates of non-oil imports, and the government is pressing the citizen to find ways to fill the deficit through taxation, collection, fees and others."
"The estimate of non-oil imports was about $ 11 billion," al-Sayegh said. "It is expected that the government will exert pressure on citizens in taxes, levies, fees, etc., because there is no real industrial or agricultural class that pays taxes regularly."
He noted that "the government reduced the estimated deficit from 26 billion in 2017 to 11 in 2018, to bear one-third on the collection of duties and taxes in compliance with the requirements of the International Monetary Fund."
"Many of the deficit figures were not real before 2014, but they became a real deficit after the significant drop in oil prices and the widespread spending in the war against terrorism, as well as corruption and waste of public money," he said.
Al-Sayegh said that "the Ministry of Finance instructed all ministries in the past to cover their needs through the use of the approved exchange mechanism, which is 112 to meet the non-adoption of the draft budget 2018."
In turn, said the Economic Committee of Representatives, the non-adoption of the budget caused by the delay of the Council of Ministers to send a draft budget law and synchronized with the beginning of the legislative holiday.
A member of the Economic Committee, Najiba Najib, "The reason that delayed the Council of Ministers to send the budget law to the House of Representatives, is the high oil prices have estimated the price of a barrel of $ 43, and now sold above the price of $ 65, which prompted the government to reduce the deficit to 13 trillion dinars after it was 23 trillion dinars. "
Najib expressed her dissatisfaction with the adoption of 12.6% of the region's budget of the 2018 budget, saying at the same time, it was returned in accordance with the formula "predominantly and absent."
She pointed out that "12.6 percent is not enough to pay salaries in general, because the region needs 889 billion dinars a month to pay, while the ratio will provide 450 billion dinars only."
And on the losses resulting from the delayed adoption of the budget, the member of the Economic Committee, the losses are not large because the origin of investment expenditures set for the establishment of service projects do not constitute more than 25% of the budget, the most of which loans and some of them ratified in 2017.
Noting that the sovereign expenditure took place Of the budget of 2018 to 45%, as well as the availability of degrees of employment but not able to cope with unemployment.
In turn, the member of the Legal Committee Haitham Jubouri, the mechanism of disbursement of the budget in 2018 every month until the completion of the adoption of the budget.
Jubouri said that "in the event of disruption of the budget, the government and all institutions and ministries of finance, the disposal of 1 to 12 of the total budget spent in this institution in the previous year."
He explained that "for example in the year 2017 is disbursed the total amount may be" billion "is disbursed in each month of the year to be paid 1/12 of the billion until the completion of the budget," stressing that "this measure legal."
It is noteworthy that the Ministry of Finance, authorized in the document ministries and departments not linked to the Ministry and the provinces and all councils, the powers of exchange during the month of January 2018 by (12/1).
This guidance comes to the delay of the House of Representatives in the adoption of the state budget for the year 2018, especially in the lists of parliamentary committees concerned to discuss.
According to the Ministry of Finance circular, the disbursement will be from the actual expenditures for 2017 or the preliminary estimates included in the budget bill 2017-2018, whichever is less related to salaries, allowances, wages, salaries, pensions, debt services and current expenses for the purpose of payment of security obligations and expenditures, .
It is noteworthy that the Financial Management Act of 2004 gave the government the power to exchange (12/1) for the previous budget for each month, ie, the Financial Management Law, if the non-approval of the budget law was signed or delayed, the previous budget is approved.
The project aims to regulate the movement of taxi vehicles in general and achieve high flow and reduce the traffic momentum in the ports of the provinces and eliminate the phenomenon of segmentation of lines and the indiscriminate loading of passengers from outside garages and the consequent negative effects, as well as justice in the loading sequence of vehicles Between all motorists and on all lines, and guaranteeing the rights of all.
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