Discussions at a high level shown by hosting Iraqi parliament today to the Ministers of Finance, Planning and oil difficulty issuing country's budget for the current year 2014 because of the shortfall, and lower production and oil prices and the continuing volatile security situation and the trend is towards the issuance of government data revenue and expenditure and the deficit and the mechanism addressed to the Council of Representatives for approval Instead of balancing deactivated.
During extensive discussions of Iraqi MPs to the conditions of the country denominational by hosting Acil Representatives of the Ministers of Finance, Hoshyar Zebari, and oil Adel Abdul-Mahdi, planning Salman al-Jubouri Thursday and briefed on the full "Elaph" detail according to a report received from the Information Office of the Parliament about the direction of the forces for not issuing the current year budget of 214 for short time the remainder of it and replace it by issuing cabinet data of income and expenditure and the deficit and the mechanism treated to the House of Representatives for approval, rather than the broken budget, which has become material for debate and the exchange of accusations between the political blocs and has returned to the cabinet several times to make adjustments to some of its clauses.
Amoisna to 2014, despite reducing its deficit
During the parliamentary session Zebari has pointed to the existence of a lack of crude oil source in revenues due to lower prices and production difficulties in the current security conditions plaguing the country. He added that the budget which amounts to amounts of about $ 150 billion was planning to be the largest in the history of Iraq suffer a deficit of 79 trillion dinars (about US $ 70 billion), and after reduction amounted to 77 trillion and after discount ranging between 39-36 trillion dinars (about US $ 30 billion) .
He said that the Council of Ministers formed a new committee during the current month to re-define the priorities required, leading to deficit reduction and rationalization of expenditure to below what can be planned in order to finance the deficit was able to be reduced to about 27 trillion Iraqi dinars (about US $ 22 billion). He explained that the withdrawal of the reserve allocation from the Development Fund for Iraq during the 2012 and 2013 economic impact and the consequent financial commitments to a number of decisions and laws on compensation and the ration card and electrical projects.
He noted that there are several proposals to address the matter, including the agreement with the Central Bank of EXTRA discount reservists legal to 7 percent instead of 15% and a Trade Bank of Iraq to grant the Ministry of Finance a loan of $ 3 billion and the issuance of securities, which means that the fiscal deficit by about 5 trillion dinars, indicating near launch an urgent batch of money available to the Kurdistan region and is currently working to prepare the budget for fiscal year 2015.
He stressed the difficulty of the Minister of Finance to provide the 2014 budget, but the ministry will provide financial data on disbursements, indicating the importance of the existence of political processors for some aspects related to the budget and the lack of any intention by the government or the Ministry of Finance PMS employees' salaries. He pointed to the existence of a real crisis in the financial liquidity but to call an end to bankruptcy in the presence of about $ 77 billion financial reserve at the central bank have not been touched.
He said Zebari to the intention of the Ministry of Finance to launch allocated to the provinces of Nineveh, Kirkuk and Diyala and Anbar money during the next phase, .. indicating the absence of any costs or financial burdens for the establishment of the coalition forces raids to combat terrorism .. stressing the keenness of everyone to grant the Kurdistan region of all rights and working to launch a boost Finance for the region soon revealing that the amount of emergency has been cashed in different areas.
Low oil prices hinder the issuance of budget
[6:07:57 AM] OW: For his part, the oil minister, Adel Abdul-Mahdi stressed that it is not possible to provide the 2014 budget due to changes in oil prices, and pointed to the lack of need for Iraq to foreign debt because Maldih of resources equivalent to the budgets of four neighboring Arab countries, but the problem is the fact that the unilateral Iraqi economy depends on oil, which imposes Everyone should understand that the continuation of this road will lead to bankruptcy.
The minister said the possibility of the ministry to increase oil production effort of the government and the House of Representatives, especially with the presence of obvious problems after licensing rounds .. stressing the need for effort with the Organization of Petroleum Exporting Countries (OPEC) to face the global oil market situation and lower global growth for some importing countries for Iraqi oil rates.
The Planning Minister Salman Jumaili has explained that the investment budget was in line with the security and development plans, but has seen many changes, noting that his ministry is working on reducing the deficit alluding to the existence of the follow-up to the level of achievement on the projects.
He pointed out that the defense and interior ministries have the largest proportion of the investment budget, noting that the ministry measures to rearrange its priorities adopted calling for the re-consideration of much of the financial policies likely non-arrival of the situation to the case of austerity, but rather to rationalize the exchange.
MPs are worried and call for processors
In the interventions of Representatives MP Magda Tamimi Head of the Finance Committee stressed the need to know the costs of the war against terrorism, calling for the development of a vision different from the previous phase strategy and demanded a review of real estate prices, which sells the state. The MP called on Najib Najib to send financial share of the region of Kurdistan and the indispensability take measures to pay the salaries of the Peshmerga, similar to the popular crowd wondering about the possibility of recycling the money.
He MP Adnan al-Janabi said national unity could potentially contribute to change the rentier economy and support agriculture, pointing to the existence of illegal decisions taken by the government to divert money from within the budget, urging the Oil Ministry to facilitate the work of the oil companies.
Inquired MP Haim Jubouri commitment on the issue of a number of ministries over the signing of contracts for projects without the approval of the Ministry of Planning or approving the budget, calling for the export of oil through the province of Kurdistan and to reconsider the price of a barrel of oil within the next budget.
For his part, MP Fares Albraivkane called on the government to take immediate action to divert the salaries of the province of Kurdistan .. As an MP has demanded the return of Ola addressing the phenomenon of tax evasion and to benefit from the financial liquidity in the Iraqi market. He said MP Mohammed Naji that 95% of the financial budget dependent on oil which is not accepted to continue .. wondering about the nature of the actions taken by the government to cope with the deterioration of global oil prices.
The MP Abbas al-Bayati, the need to work hard to prevent money laundering and the importance of reducing the custom consumer aspects of the money in the state departments.
MP Ahmed electrodes have inquired about the existence of attempts to dispose of the Iraqi Central Bank reserves. MP Aziz and inquired about the timing of the exchange Ugaili provincial share of the petro-dollar and a way to extinguish the advances from 2008 until 2013. And MP Ali al-Badri, the need for the government to develop a clear strategy for the agricultural sector and support the agricultural provinces.
And Rep. Nora Albjara indicated the presence of 6000, which requires a large project to have a role in the Ministry of Planning completed. MP Ibrahim Bahr al-Ulum government and politicians to look for real solutions to the problem of the fiscal deficit in the budget.
Direction of austerity
It was a meeting of the Ministerial Committee of the Iraqi in charge of the financial policy of the country, headed by Finance Minister Hoshyar Zebari on Tuesday with the participation of ministers of the interior, electricity, health and planning, higher education, trade and the central bank governor and the head of the advisers and the Secretariat of the Council of Ministers, experts and the Ministry of Finance has stressed the need to reduce non-core expenditures in ministries allocations The bodies of the state as much as possible to avoid the aggravation of the financial crisis and liquidity faced by the country and the possibility of disability from a number of available sources of funding for the remaining period of the fiscal year.
Iraqi officials say the large deficit facing the state billions of dollars because the sudden draft budget prepared by the previous government of Nuri al-Maliki law involving exaggerations on oil revenues and projected filled with heavy financial commitments paid executive authority to request a review of arming military contracts and obligations.
The parliamentary committee competent revealed earlier this month that the Maliki government has spent all amounts derived from oil revenues for the first seven of this year for months, although it did not pay the amounts of petrodollars to Basra and the rest of the producing provinces as Kurdistan's budget did not pay as well as other contingent expenses in the provinces which fell to Daash What refers to a substantial increase in spending and not calculated for job quotas provinces has been waiting for the launch of their salaries or their employees.
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