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Revision of the state budget structure and presentation
7/26/2015 0:00
Ali Mohsen Keywords
Evolution of the concept and content of the state budget over time, is no longer a budget just legislation to legitimize the expenses and revenues in the traditional clauses that were linked to the traditional role of government, it has become an annual plan reflects the plans or the medium and long-term strategies, which are aimed at achieving social and economic development goals, which It is of the form and content of the general budget so as to achieve the provision of understanding of the objectives and programs and provide a clear display offers the possibility of monitoring and evaluation and accountability, and can be linked to the general budget expenses and the contribution of those expenditures in achieving progress and growth towards the objectives contained in these national plans and strategies in the macro-economic dimensions and sectoral and spatial extent of progress in the reality of public services and the infrastructure, and what is possible to achieve the developmental harvest of the implementation of programs and projects
And it can shorten the factors that led to the evolution of the concept of the state budget and thus presentation of the following factors:
1. The form and content of the state budget is linked to the philosophy of the state in its economic-political, and the role of government - depending on was so in economic and social life, and this role has evolved over time to change the philosophy and systems of governance, which arrived in his accession to the government to be in a position (directed and orderly) for economic and social development after it was her role in the beginnings of the emergence of modern governments role (goalkeeper), the upgrading of the role and tasks put governments in a position strategic mind which carries the vision and goals, and then routing turning it into projects and programs in accordance with the models and multiple options (away from the direct role of government in implementation), create opportunities and an environment suitable for the promotion of economic sectors and social welfare and development through the optimal use of resources, and the effectiveness and economic efficiency, and determine which is contained in the state budget targets in the light of the developments mentioned above, the following:
• To achieve sustainable development in order to achieve social welfare.
• encourage productive activities and the reduction of non-productive activities.
• reducing unemployment and raising the social productivity of labor.
• general stability of prices and the reduction of inflation.
• attracting foreign investments.
• increase national income.
• Support the trade balance.
• To achieve the security and economic and financial stability.
• Increase the contribution of the private sector in the GDP.
2. growing human development mission, which is the other evolved from being the provision of humanitarian aid, to include checks for people of offering qualitative and quantitative in their lives, and became a reality and a trend that human development and improve the characteristics of the human is the natural gateway to any real development process, and that man does not have to the ultimate goal of development.
3. The growing role of human and civil society organizations to participate in the planning and evaluation and accountability, as the maker of human development as its purpose and the time itself is a tool for change.
4. The growing role of local authorities in light of the spread of democratic systems, which expands from those roles, and is based on the decentralization of the management and development areas, and the consequent of the division of powers and responsibilities and fair distribution of resources, and empower local administrations administratively and financially, and enable them also in planning and drawing operations policies and programs a private development.
5. The development of the concept of control, because of the evolution of the content and goals of the general budget on the one hand, and because of the development of administrative and financial systems, including the concepts of strategic planning and concepts of efficiency, effectiveness and economic expansion in performance measurement, and the concepts of quality and excellence and public satisfaction .. etc, because of the expansion of the role of citizens in the political and economic life and social and therefore their role in the control, so control is no longer a legislative and financial traditional control scrutinize the commitment limits expenditure and income governed by the budget law, but the evolution of the concept, content and tools to control the direction of achieving other goals, the goals focus on the achievement of objectives, programs and plans that target the budget and focus on those results in terms of quality, efficiency, effectiveness and Aguetsadatha, check the optimal use of resources within the specific priorities in achieving sustainable development on the basis of social justice and social balance.
6. increased risk due to the large opening of the markets and the complexity of the economic, commercial and financial relations, and the magnitude of the risk as a result of the effects of financial crises that occur in other countries, and increase the risk depth in countries that depend on the source or specific sources of natural resources -as is the case in oil-producing countries such as Iraq where these countries rely on the basis of resource affect fluctuations in oil prices have a direct impact on revenues, all of that arranges a direct impact in the preparation of the general budget, construction and presentation including indicates the medium and long-term goals in the diversification of the production base, and in diversifying the sources of budget revenues, and objectives short-term to deal with the fluctuations and financial crises, and in general is bound to the general budget reflects the ability to hedge risk and flexibility to respond to changes and fluctuations.
7. In addition to what is stated in the above points, the specificity of the situation in Iraq calls for a development entirely in the form and content of the state budget, as the country suffers and citizens of heavy byproducts of large and backwardness in various aspects of life, as the country faces great challenges and serious disorders, and the circumstances of the country in terms of the transition from an authoritarian system to a democratic system in the absence of cohesion institutional, social and the resulting delay, palaces and corruption, all of this calls for the construction of the general budget and presented a way that reflects the extent to respond to the requirements and challenges and phenomena of serious, and in a form that provides information and data readable and measurement, control and Calendar in clear frameworks objectives, programs and subject to review, monitoring and Althalil.bad this year's review, which we dealt with the justifications and reasons and conditions of the development of the general budget planning and in form and substance, show in below if the federal public budget for Iraq in the light of the over statement, any how close or after of these requirements:
1. The general budget in the light of other ministries and agencies estimates, which are based on historical data and future expectations are added randomly and in an exaggerated manner too, to provide room for negotiation with the Ministry of Finance (for example, were the ministries and other agencies provided estimates of spending power to the Ministry of Finance more than ( 300) billion dollars for the year in most years - no more than state revenues by 4-fold), and the intervention of such requests in and take, negotiation processes to reach a certain number, and influence in determining the amount in some cases, the power of the bargaining, political or Aguenaia or in person, and if What estimates approved reached a large primary deficit, so they can be truncated sums of allocations by almost a uniform for everyone without taking into substantive considerations, priorities and commitments, goals and nature of the activity.
2. Although continue to develop short- and medium-term strategy for the budget, and despite the presence of national strategies directly related to the general budget, such as the National Development Strategy (for five years), and poverty reduction strategy, and strategy development of the private sector, and strategies sectoral (energy, health, education, Labour and Social Welfare, Agriculture, Housing, etc. ..), despite the presence of all those strategies which should be reflected in the construction of the general budget, but we note the almost complete absence of these strategies in the content of the budget can not be the current display method of knowing the extent to which those strategies in budget.
3. The growing role of public budgets -as Pina- in the expression of economic and social objectives in human development can not touch this role in the General Fund, because of the nature of the preparation and presentation of the budget can not stand or identify the answers to important questions, including:
- What are the economic, social and development goals targeted by the budget? What is the progress that can be achieved when implemented ratios?
- What is the Tothiralanvaq in different sectors?
- What is the role of the budget in balance and social justice?
- Check how much of a gap to bridge the shortfall in the infrastructure?
- The extent to which the budget conform with national and sectoral strategies allocations?
- What is the cumulative realized from previous years to the desired goals?
- How is the size of the projects included, not only in the annual allocation but its total allocation for these projects (a total allocations for the projects listed more than 200 billion is not reflected in the budget)? How is the sectoral and geographical distribution and the extent to which deprived areas? What are the proportions of what actually check them out?
- What are the tax policy? What are the vessels that target? How much is the size of these vessels? What is the ratio of estimated revenue in light of the size of each pot of these vessels?
- What are the costs of departmental centers in the state, starting from the presidencies of the authorities to the public administrations? What is the ratio of the cost of each center to the size of the production or activity provided? What are attributed to the total expenditure of the public budget?
- How much cover local revenue (non-oil) from operating expenses of the state?
- What is the size of grants, aid and loans to self-funded bodies (by virtue of its laws), and public companies? And what proportion to the total expenses?
- What are the current fixed expenses (which can not be reduced)? And how it is funded? What are attributed to the oil revenues?
- What is the ratio of the contribution of economic sectors (non-oil) in the composition of GDP? What is the budget impact in that percentage?
- What is the status of the balance of trade (non-oil) and the balance of payments?
- What is the size of the domestic and external, benefits and entitlements of religion?
- What is the value of private real estate government property (buildings, land)?
- Is there a link between the allocation and target (expressed in a project or program)?
It is regrettable that the budget in its current form does not provide adequate or answers do not already exist answers to most of these questions, and this indicates to the size limitations of the data and information offered by the budget (in form and content), and thus lose their importance and role in the planning and control, control and achieve the desired results in aspects economic, social and development budget, which represents the main tool to achieve.
The general budget organized on the basis of government accounting, and this is the basis of a minor for providing accurate and useful reading in directing the budget towards the ends and in providing management, planning and control and optimal use of resources rules, at a time when the general budget passed in world developments successive where the budget has shifted from being an annual plan of expenditure and income within tabs accounting rigid, turned into plans and programs respond to the objectives of the medium and long-term strategy, and saw these developments move the budget to a data management helps to optimum utilization of available resources base (called the administration's budget) and then evolved to balance programs and then to planning and programming system provides the necessary planning, management and control of data, which helps in the optimal use of resources and provide clear rules and specific and measurable goals and performance at all levels.
We have launched a project to reform the public budget system by more than two years (when I was Secretary General of the Council of Ministers), and we formed a joint team to select the appropriate system to view the balance between Options world followed, cutting the team way whatever in this regard after reviewing the budgets of other countries, and we hope to end This project is real reform alters the shape of the budget and content to respond to the requirements and necessities which we have referred, and to then (the application of a new system), we see it is necessary to address the current situation by remodeling budget (without prejudice to the government accounting system which is which) by strengthening general budget analytical disclosures, can decision-making positions in the executive and legislative branches to understand and stand on the facts and phenomena and information designated by taking guidance and appropriate decisions, also provide those disclosures rules of important information for all specialists and concerned as well as the media and civil society organizations, professional organizations and the business environment as well as the public in general.
We show below in a number of important data that must be provided in order to achieve the necessary understanding of the budget, knowing that they are available and can be obtained, as annexes attached to them:
7/26/2015 0:00
Ali Mohsen Keywords
Evolution of the concept and content of the state budget over time, is no longer a budget just legislation to legitimize the expenses and revenues in the traditional clauses that were linked to the traditional role of government, it has become an annual plan reflects the plans or the medium and long-term strategies, which are aimed at achieving social and economic development goals, which It is of the form and content of the general budget so as to achieve the provision of understanding of the objectives and programs and provide a clear display offers the possibility of monitoring and evaluation and accountability, and can be linked to the general budget expenses and the contribution of those expenditures in achieving progress and growth towards the objectives contained in these national plans and strategies in the macro-economic dimensions and sectoral and spatial extent of progress in the reality of public services and the infrastructure, and what is possible to achieve the developmental harvest of the implementation of programs and projects
And it can shorten the factors that led to the evolution of the concept of the state budget and thus presentation of the following factors:
1. The form and content of the state budget is linked to the philosophy of the state in its economic-political, and the role of government - depending on was so in economic and social life, and this role has evolved over time to change the philosophy and systems of governance, which arrived in his accession to the government to be in a position (directed and orderly) for economic and social development after it was her role in the beginnings of the emergence of modern governments role (goalkeeper), the upgrading of the role and tasks put governments in a position strategic mind which carries the vision and goals, and then routing turning it into projects and programs in accordance with the models and multiple options (away from the direct role of government in implementation), create opportunities and an environment suitable for the promotion of economic sectors and social welfare and development through the optimal use of resources, and the effectiveness and economic efficiency, and determine which is contained in the state budget targets in the light of the developments mentioned above, the following:
• To achieve sustainable development in order to achieve social welfare.
• encourage productive activities and the reduction of non-productive activities.
• reducing unemployment and raising the social productivity of labor.
• general stability of prices and the reduction of inflation.
• attracting foreign investments.
• increase national income.
• Support the trade balance.
• To achieve the security and economic and financial stability.
• Increase the contribution of the private sector in the GDP.
2. growing human development mission, which is the other evolved from being the provision of humanitarian aid, to include checks for people of offering qualitative and quantitative in their lives, and became a reality and a trend that human development and improve the characteristics of the human is the natural gateway to any real development process, and that man does not have to the ultimate goal of development.
3. The growing role of human and civil society organizations to participate in the planning and evaluation and accountability, as the maker of human development as its purpose and the time itself is a tool for change.
4. The growing role of local authorities in light of the spread of democratic systems, which expands from those roles, and is based on the decentralization of the management and development areas, and the consequent of the division of powers and responsibilities and fair distribution of resources, and empower local administrations administratively and financially, and enable them also in planning and drawing operations policies and programs a private development.
5. The development of the concept of control, because of the evolution of the content and goals of the general budget on the one hand, and because of the development of administrative and financial systems, including the concepts of strategic planning and concepts of efficiency, effectiveness and economic expansion in performance measurement, and the concepts of quality and excellence and public satisfaction .. etc, because of the expansion of the role of citizens in the political and economic life and social and therefore their role in the control, so control is no longer a legislative and financial traditional control scrutinize the commitment limits expenditure and income governed by the budget law, but the evolution of the concept, content and tools to control the direction of achieving other goals, the goals focus on the achievement of objectives, programs and plans that target the budget and focus on those results in terms of quality, efficiency, effectiveness and Aguetsadatha, check the optimal use of resources within the specific priorities in achieving sustainable development on the basis of social justice and social balance.
6. increased risk due to the large opening of the markets and the complexity of the economic, commercial and financial relations, and the magnitude of the risk as a result of the effects of financial crises that occur in other countries, and increase the risk depth in countries that depend on the source or specific sources of natural resources -as is the case in oil-producing countries such as Iraq where these countries rely on the basis of resource affect fluctuations in oil prices have a direct impact on revenues, all of that arranges a direct impact in the preparation of the general budget, construction and presentation including indicates the medium and long-term goals in the diversification of the production base, and in diversifying the sources of budget revenues, and objectives short-term to deal with the fluctuations and financial crises, and in general is bound to the general budget reflects the ability to hedge risk and flexibility to respond to changes and fluctuations.
7. In addition to what is stated in the above points, the specificity of the situation in Iraq calls for a development entirely in the form and content of the state budget, as the country suffers and citizens of heavy byproducts of large and backwardness in various aspects of life, as the country faces great challenges and serious disorders, and the circumstances of the country in terms of the transition from an authoritarian system to a democratic system in the absence of cohesion institutional, social and the resulting delay, palaces and corruption, all of this calls for the construction of the general budget and presented a way that reflects the extent to respond to the requirements and challenges and phenomena of serious, and in a form that provides information and data readable and measurement, control and Calendar in clear frameworks objectives, programs and subject to review, monitoring and Althalil.bad this year's review, which we dealt with the justifications and reasons and conditions of the development of the general budget planning and in form and substance, show in below if the federal public budget for Iraq in the light of the over statement, any how close or after of these requirements:
1. The general budget in the light of other ministries and agencies estimates, which are based on historical data and future expectations are added randomly and in an exaggerated manner too, to provide room for negotiation with the Ministry of Finance (for example, were the ministries and other agencies provided estimates of spending power to the Ministry of Finance more than ( 300) billion dollars for the year in most years - no more than state revenues by 4-fold), and the intervention of such requests in and take, negotiation processes to reach a certain number, and influence in determining the amount in some cases, the power of the bargaining, political or Aguenaia or in person, and if What estimates approved reached a large primary deficit, so they can be truncated sums of allocations by almost a uniform for everyone without taking into substantive considerations, priorities and commitments, goals and nature of the activity.
2. Although continue to develop short- and medium-term strategy for the budget, and despite the presence of national strategies directly related to the general budget, such as the National Development Strategy (for five years), and poverty reduction strategy, and strategy development of the private sector, and strategies sectoral (energy, health, education, Labour and Social Welfare, Agriculture, Housing, etc. ..), despite the presence of all those strategies which should be reflected in the construction of the general budget, but we note the almost complete absence of these strategies in the content of the budget can not be the current display method of knowing the extent to which those strategies in budget.
3. The growing role of public budgets -as Pina- in the expression of economic and social objectives in human development can not touch this role in the General Fund, because of the nature of the preparation and presentation of the budget can not stand or identify the answers to important questions, including:
- What are the economic, social and development goals targeted by the budget? What is the progress that can be achieved when implemented ratios?
- What is the Tothiralanvaq in different sectors?
- What is the role of the budget in balance and social justice?
- Check how much of a gap to bridge the shortfall in the infrastructure?
- The extent to which the budget conform with national and sectoral strategies allocations?
- What is the cumulative realized from previous years to the desired goals?
- How is the size of the projects included, not only in the annual allocation but its total allocation for these projects (a total allocations for the projects listed more than 200 billion is not reflected in the budget)? How is the sectoral and geographical distribution and the extent to which deprived areas? What are the proportions of what actually check them out?
- What are the tax policy? What are the vessels that target? How much is the size of these vessels? What is the ratio of estimated revenue in light of the size of each pot of these vessels?
- What are the costs of departmental centers in the state, starting from the presidencies of the authorities to the public administrations? What is the ratio of the cost of each center to the size of the production or activity provided? What are attributed to the total expenditure of the public budget?
- How much cover local revenue (non-oil) from operating expenses of the state?
- What is the size of grants, aid and loans to self-funded bodies (by virtue of its laws), and public companies? And what proportion to the total expenses?
- What are the current fixed expenses (which can not be reduced)? And how it is funded? What are attributed to the oil revenues?
- What is the ratio of the contribution of economic sectors (non-oil) in the composition of GDP? What is the budget impact in that percentage?
- What is the status of the balance of trade (non-oil) and the balance of payments?
- What is the size of the domestic and external, benefits and entitlements of religion?
- What is the value of private real estate government property (buildings, land)?
- Is there a link between the allocation and target (expressed in a project or program)?
It is regrettable that the budget in its current form does not provide adequate or answers do not already exist answers to most of these questions, and this indicates to the size limitations of the data and information offered by the budget (in form and content), and thus lose their importance and role in the planning and control, control and achieve the desired results in aspects economic, social and development budget, which represents the main tool to achieve.
The general budget organized on the basis of government accounting, and this is the basis of a minor for providing accurate and useful reading in directing the budget towards the ends and in providing management, planning and control and optimal use of resources rules, at a time when the general budget passed in world developments successive where the budget has shifted from being an annual plan of expenditure and income within tabs accounting rigid, turned into plans and programs respond to the objectives of the medium and long-term strategy, and saw these developments move the budget to a data management helps to optimum utilization of available resources base (called the administration's budget) and then evolved to balance programs and then to planning and programming system provides the necessary planning, management and control of data, which helps in the optimal use of resources and provide clear rules and specific and measurable goals and performance at all levels.
We have launched a project to reform the public budget system by more than two years (when I was Secretary General of the Council of Ministers), and we formed a joint team to select the appropriate system to view the balance between Options world followed, cutting the team way whatever in this regard after reviewing the budgets of other countries, and we hope to end This project is real reform alters the shape of the budget and content to respond to the requirements and necessities which we have referred, and to then (the application of a new system), we see it is necessary to address the current situation by remodeling budget (without prejudice to the government accounting system which is which) by strengthening general budget analytical disclosures, can decision-making positions in the executive and legislative branches to understand and stand on the facts and phenomena and information designated by taking guidance and appropriate decisions, also provide those disclosures rules of important information for all specialists and concerned as well as the media and civil society organizations, professional organizations and the business environment as well as the public in general.
We show below in a number of important data that must be provided in order to achieve the necessary understanding of the budget, knowing that they are available and can be obtained, as annexes attached to them:
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