Economists: the citizen will remain safe from damage if the government stuck to austerity rational m

Economists: the citizen will remain safe from damage if the government stuck to austerity rational management of money available

Sun Nov 02 2014 22:08 | (Voice of Iraq) -  Add Comment - long / Baghdad 

Experts predicted in the field of economics that the citizen will be away from the effects of monetary policy liquidity crisis and austerity that are being talked about in the face of the recent drop in oil prices and increased expenses, and stipulated that the government money in the existing management to succeed in a "rational". 

While the Chairman of the Finance Committee in the House of Representatives Magda Tamimi says Gulf barrel is calculated in the budgets of $ seventy Kqimih discretionary, while Iraq Ihtsabh ninety dollars, and then falls in forbidden, experts criticize spending "lavish" policies by the powerful class that has been keep on estimates High oil prices in the budget do not take precautionary measures, according to their opinion, in order to keep a share of the money mafia Almtbdd by financial and administrative corruption. While experts suggested a series of urgent measures to remedy the features of "economic crisis", such as the launch of domestic borrowing and bonds and moving money insurance companies and pension fund, and to reconsider the privileges of officials and the number of employees in the three presidencies and style grants and Altamoana card. 

Oil prices have tumbled about 25 percent since last June, and analysts expect that the abundant supply of high-quality shale oil from North America, may last years. The spent the government of Nouri al-Maliki "previous" amounts derived from the export of oil and the estimated value B70trliun dinars without the fulfillment of a lot of obligations, such as dedicated to the Kurdistan region amounts and allocations of petrodollars to Basra, predicted the former oil minister, "Ibrahim Bahr al-Ulum," The decline in oil prices to $ 70. 

In Moish that a professor of economics at the University of Mesopotamia, Imad Abdul Latif Salem says in an interview for the "long" that "Iraq is estimated price of a barrel of oil in the budget, high value even builds a policy of high Anfaqah," while most of the countries of the world, including the Gulf appreciate 60 to $ 70 to avoid any surprises in prices. 

Salem is the political situation the general budget is a political "improper" and promote economic imbalance and dedicated corruption, a re-distribution of the "corrupt" quotas instead of re "income" distributed to citizens. He said, adding that the higher public spending higher the corruption, so there are forces and a group of private sector "parasite" allied with the state to build what is known as the "state capitalism", prefers to keep going forward with high ceilings to keep the power, influence and wealth. 

Indicates a professor of economics that the austerity policy will not include "salaries", but will include only "investment going forward," while operating, which is estimated 52% of the overall budget will be out of the accounts, but the economic impact on the citizen and the market will be indirectly, while less public spending Because of the lack of financial Alsjulih government will at least demand on employment and purchasing goods from the private sector, to create Miada possible recession turns into an economic crisis if it is not handled properly. 

He says Salem that Iraq has become a fait accompli after the drop in oil prices to $ 85 and the decline of export of 3.4 million Armel to 2.4 million barrels, and is imperative that the decline in the huge amounts spent by the "political class" which says it eat a large proportion of the budget, and review the preparation of workers In the third presidencies, where confirms that "presidencies" inherited from the previous government's "heavy legacy" of the workers do not know how to behave with them, in addition to the need to reconsider the advances and grants, at the same time warning of the danger of external borrowing. 

For his part, says economist Majid picture "long" that "the citizen will be away from the impact of the liquidity crisis and austerity if the government managed funds manage a sound and rational manner," he said, adding that he can not in any case from talking about "austerity" while we do not know where I went weather money in the past few months, which is estimated B70trliun dinars spent during the past seven months. 

"Suri says that" the final accounts, which were sent to the House of Representatives is incomplete until 2011, indicating that he was supposed to send an initial accounts "quarterly" before checking periodically until the work is true and can learn the fate of the money. 

He says economic expert said any talk of a new tax or an increase in customs duties in a "relative" will be affected, including the poor citizen, but you can follow the tax "progressive" rise with rising citizen's income, Mini deduct money from senior staff who have the money and high allocations. It also says that he could invest the money in the pension fund and insurance companies and religious endowments. 

It was a meeting of the Ministerial Committee for Financial and Economic Chún, earlier, stressed the need to "reduce non-core expenditures in ministries and state bodies allocations and pressure on spending as much as possible to avoid the aggravation of the financial crisis and low liquidity," The meeting also discussed a number of options available to the government to finance the deficit sources available during the remaining period of the current fiscal year. 

The chairman of the government, "Haider al-Abadi," recently, about his government had discussed the issue of the federal budget for 2014 three times, and will provide a cash budget to the House of Representatives, representing the amounts disbursed by the government since the beginning of this year, with military spending, "pointing out that" budget in 2015 will be based on balancing the current year, because the current problems will continue in the coming year, where the province of Kirkuk oil wells stopped, as well as lower prices for a barrel of oil dramatically to below $ 90 per barrel. "Abadi said that" the Council of Ministers decided to follow the policy of austerity in unnecessary expenses, and we will continue with this policy, because we can not confine the military effort and salaries and basic services to citizens. 

The appearance of Mohammed Saleh, a former official at the central bank, said that Iraq is in crisis "temporary liquidity", following the increase in the expenses of military operations and the displacement crisis and low oil prices that are expected to settle at $ 80. As he says that the time has come to launch the government's "economic change" and dismantling of barriers to private sector campaign. 

I suppose the benefit that the crisis can be avoided by rearranging spending priorities, and the development of "sound" for the collection of fees and taxes diluted way measures do not affect the shoulders of the citizen, and the expansion of domestic borrowing door firing bonds and patient involvement in external debt because they carry a large burden on the country.


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