Expert: China agreement will cut operating budget
10:15 - 01/24/2020
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Economist Saleh Al-Hammash said on Friday that the Chinese agreement will reduce the operating budget more than investment, noting that the percentage of the budget deficit will also decrease due to two factors.
"The Chinese agreement did not fall within the investment budget, as it deals with source oil, especially since China imports 850,000 barrels and cuts 100,000 from them to finance the agreement projects concluded between the two countries," Al-Hamash said in a statement to "The Information."
He added that "some ministries have projects, and an investment budget has been allocated to them to complete these projects. Therefore, this budget can be reduced in the solution of implementing projects according to the Chinese agreement."
And that "most of the investment budget goes to oil companies," pointing out that "the Chinese agreement will serve and reduce the operational budget more than investment."
He explained that "the operating budget constitutes 75% of the budget, and if projects are completed according to the Chinese agreement, then there will be revenues that will enter ministries and reduce their operating budget."
He pointed out that "the budget deficit will decrease after the implementation of the Chinese agreement as a result of the decrease in the operating budget, in addition to that the oil prices are higher than what is decided in the budget and the price difference will fill a large percentage of the deficit to reach at the end of the year to 10 trillion instead of 48." 25 n ended