Academic: the need to reform and restructure government spending

1/10/2016 0:00

BAGHDAD - Imad Emirate

form government expenditures the main source to provide basic services to satisfy public needs, which we desperately need at the present time, and the amount depends the well-being of society and economic progress, as the level of growth is associated with significantly growing, steady public expenditure that constitute an important part of total expenditure function, which many economists called to give her a distinct importance. In this regard, said the academic d. Imad al-Ani (morning) that talk about the issue of the reform of public expenditure must be confined to the area of reducing public spending of only quantitatively, because achieving it down to balancing the budget will result in negative economic and social consequences for society, and it must focus reform efforts in Subject to restructure public spending first and then work on directed towards areas that will economic and social stability. He said D.ana In this regard, the question arises as follows Are Targeting operational spending or investment spending in the reform of public expenditure process? The answer is that the experiences of many countries refers to the targeting of both of them, but the share of investment spending in the reduction of the expansion was the largest for many reasons may be the most important that there be obligations on the government to be carried out for social reasons may be humanitarian, such as expenditures ruling in the general budget of the Government of Iraq and of particular expenditures card ration, that also cut operational spending in many cases lead to damage to the poor classes such as reduced support in the health and social security sectors and this is inconsistent with the general trend towards reducing poverty and unemployment rates. and between Ani that most economies and Iraq, one of them is moving to adopt a market economy through the process allocative any case the private sector replace the public sector, thus reducing the role of the state in economic activity and increase its focus on the social aspect to improve the quality of services provided to satisfy Amh.oadav d needs .. Ani Therefore, reform efforts should focus on increasing the efficiency of resource allocation and reduce the resources allocated Operational spending is not the product or the so-called (drainage outside the budget) and this is what is intended to display public spending any use of modern technology and methods developed for the distribution of public funds better by measuring the yield of this, but the hypocrisy and thus transfer money from public spending is the product to product with economic returns spending and which achieves the social welfare of the community. He stressed the importance of linking the obligation to provide support for goods and services to needy groups specifically and work to improve the level of social services provided and style as well as attention to human development and infrastructure, and continued d. Ani, here it is, the installation of public spending and restructuring to its level is important in the reform of public spending process and when the extent that the public spending level consistent with economic stability, and therefore, the reform of public finance sector measures include a specific set of measures to reform spending policy and this divided into for the short, medium and long, the short-term include reducing the proportion of spending to the gross national product and change its structure by reducing or removing subsidies for projects and consumers and to subject economic and financial new assessments, this in addition to the restructuring of social security and the rationalization of other social spending programs so that they are consistent with developments and changes in the financial sector on the one hand and the process of economic reform on the one hand Akhary.fima said that reform of the spending policy for the medium term depends when there is a need for quality changes related to the maintenance and promotion of fundamental economic structures and reduce government employment process is efficient, through a policy operating with efficiency to improve productivity and rely on skilled labor to achieve Zlk.omn the other hand, try to integrate the expenses outside the budget or quasi-fiscal expenditures of government budget so that they are one unit in order to balance the unity of the budget base more accurately based on, and finally repair expenses and long-term as it is assumed that be the features of the economy and in particular the reform more clearly so that it is through which contain and confront the problems inherited.