Iraq: Fears of a budget deficit.

Iraq: Fears of a budget deficit.




Experts forecast for the budget deficit in Iraqi this year due to declining oil production and export surplus and lower indices in the «Development Fund for Iraq», at the time carried the Committees on Finance and Economics Barlmanatan the responsibility of the government fiscal deficit in the federal budget.
The expert said the financial appearance of Mohammed Saleh in an interview to «life»: «The projected deficit in the budget this year of 20.7 trillion dinars (17.8 billion dollars), has been achieved if you disagree with the Kurdistan Regional Government on the export of 400 thousand barrels per day to the central government and take the increase of the federal budget, which is estimated at 17 percent, and in light of the decrease in the surplus of the Development Fund of Iraq ».

Saleh added: «that the surplus in the fund until the end of 2012, amounted to 18 billion dollars, while the end of 2013 to six billion, which indicates the possibility of registration of the said deficit».

And reduced the Ministry of Finance of those fears because of what it considered a proactive plans developed to address the budget deficit. The Undersecretary of Finance Minister Fadhil Nabi told «life» that «the deficit in the current budget cut of 35 trillion dinars to 20.7 trillion, what is considered acceptable in terms of the rate of oil exports of 3.4 million barrels per day at a price of $ 90 a barrel».

Abizaid: «not selling prices have declined during the six months for $ 90 a barrel, what would be a surplus can be used to bridge the fiscal deficit in the budget». Ezzat and a member of the Finance Committee Magda al-Tamimi said in a statement to «life», the fiscal deficit in the budget to «the recent approval of the pension law and amend the law on political prisoners and calculating the funds self-financing companies».

She explained that the «deal with the deficit is to cut government spending and stimulate the financial market and maintain the oil installations from sabotage, as Iraq is dependent on oil imports to finance 95 percent of the budget». It continued: «that the budget deficit in the current default and caused the price of a barrel of oil at $ 80, and the export of three million barrels per day», loaded with «the Ministry of Finance and the Cabinet full responsibility in the event of disability check this».

He warned a member of the economic and investment commission in the House of Representatives Mahma Khalil «continuation of the fiscal deficit in the federal budget without treatment, especially as he was in the previous budget to 12 percent, will affect in the form of direct and significant investment projects, especially as the Financial Administration Act requires the State Declaration of bankruptcy if it reaches its fiscal deficit to 50 percent ».

The total draft budget in 2014 sent from the Ministry of Finance to the General Secretariat of the Council of Ministers in September last 174.649 trillion dinars, after calculating the value of oil revenues by 130 trillion dinars.


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Guess they shouldn't go around buying 96 tonnes of gold if they are skint!!