A member of the follow-up committee for the implementation of the government program for the parliamentary bloc of Sairon Anam Khuzaie on Monday on the rates of sharp decline in revenues of the state oil and non-oil, warning of the possibility of a severe economic crisis.
"Contrary to the government program, the fourth axis of which focused on maximizing non-oil revenues (eg customs taxes) and monitoring public debt to ensure that it remains within the limits of financial sustainability, the government did not actually seek to maximize non-oil revenues," Khuzaie said in a statement. Revealing the decline in oil prices from nearly $ 80 to $ 50 during the past months.
She added, "Unfortunately, the customs agreements between Iraq and neighboring countries have incurred heavy budget losses, especially with the granting of these countries customs exemptions and reducing the characteristics of income, which led to a decline in non-oil revenues significantly, pointing out that" official figures indicate a decline in non-oil revenues from (8.6) trillion dinars until the end of August of 2018 to nearly (3) trillion dinars until the end of August of 2019.
"This was accompanied by another serious decline in total investment expenditures from (16.3) to (11.2) trillion dinars for the same period," said a member of the Follow-up Committee of the implementation of the government program, pointing out that "this indicates a weak investment effort for this year despite what was allocated by the general budget By 32% this year compared to the same period last year.
Al-Khuzaie continued, "and justifies the concern of the performance of the government decline in oil revenues, Iraq has achieved nearly (84) trillion dinars since the beginning of 2018 until August of the same year," pointing out that "this year has witnessed a sharp decline in oil revenues, Oil revenues did not exceed (53) trillion dinars only, which is a decline in oil revenues by (37%) during the current year from 2018.
She explained that "the above figures disclose very important financial facts, the first decline in oil revenues and weak expectations about the recovery of oil prices, and the second decline in non-oil revenues due to the policies of exemptions (free of charge) followed by the current government," warning "of the possibility of an economic crisis Khanaqah warns of inflated levels of government fiscal deficit again and likely widening public debt, both internal and external.
"Finally, the investment budget figures fully reflect the deterioration of public services in the country, despite the huge budgets that are approved annually to improve the reality of services and raise the living standard of the citizen," she concluded.