[size=30]Economist: The budget surplus of 2018 almost covered the size of the planned fiscal deficitBy [You must be registered and logged in to see this link.] September 29, 2018
BAGHDAD - Ali Karim is amazing
"The budget surplus (2018) in Iraq has almost covered the size of the planned fiscal deficit," economic expert Ahmed Hazal said on Saturday.
He said in an exclusive interview with Al-Hadath, that the budget surplus (2018) in Iraq covered almost the size of the planned deficit, because the increases resulting from the rise in oil prices prevented internal and external borrowing. According to the Ministry of Finance, spending during the first half of this year (30) trillion, while revenues amounted to about (45) trillion dinars, while the surplus of this year is almost equal to (15) trillion, and the Ministry stressed that the budget deficit amounted to real (19) trillion dinars, not (12) trillion dinars, as planned So, what if oil prices do not increase?
He added: We will definitely go to the public debt channel because we have no other, even if the interest-free borrowing will often be negative for future generations because the imbalance in the budget prevents any growth in sectors with reliance on the oil well on the one hand and abuse and censorship on the other hand! "He said.
"Whether it is time to look at events logically and pragmatically, is it not worth working on the logic of the economy and the dictates of cost-return? Why do we insist on continuing the same mistake!"
The economic expert pointed out that "Iraqi oil is sold less than (7) dollars from the basket of oil, because it contains a large proportion of water and impurities, in one period Iraq has exported a quantity of oil to one of the European countries, and the agreement that the Iraqi oil falls in it Water percentage and other impurities. When the shipment arrived in the European country, it was found to contain a large amount of water. The western side demanded a fine and paid for the liquidation of the oil, as well as reducing the quantity sold after liquidation. "
"When oil is extracted, it is usual to have a technical defect that needs to be repaired, whether it is in the pipes or the oil wells, and this takes a long time, leading to a reduction in quantities sold," he said.
At the end of his speech, Hazal called for the need to develop at least one sector, to lead Iraq to an economy man who is aware of what he is doing and to make the decision according to the economic logic that is approaching reality. Not all of the country's revenues from crude oil, Public debt does not leave this country, and will eliminate what can be saved for future generations if this arbitrary pattern continues. "