Adoption of new measures to reduce the budget deficit
[rtl] BAGHDAD - Imad emirate
said economist D.gosai Jabri that economic development requires a review of the fiscal policy, including government spending, and the impact of this policy in determining theamount of the deficit or surplus in the budget, and the way in which the deficit financing or the mechanism that is the disposition of the surplus.
He said Jabri , in an interview with «morning» that the pressure of government spending, during the international sanctions in the nineties of the last century, led to a decline in the budget deficit at the time.
He said when it becomes clear economic imbalances need to take measures show is to determine the size of the the reduction in the fiscal deficit of the budget needed for this time duration, and identify the factors influencing the reduction of the size and extent of the sustainability of these reduction programs. public spending and stressed that such measures require a study of public spending composition and the nature of public sector activities and patterns of public service delivery, and the introduction of the principle priorities in determining the size of investment spending, and trends in accordance withsocial and political imperatives of relying on the principle of the productivity of public spending. He Jabri that the adoption of spending policy and rationalization of us in front of various options, including the central bank raised the interest rate, or an increase of the statutory reserve requirements for commercial banks, and this leads to the lifting of the cost of borrowing and reduce the money available to lend, or sell government bonds for the purpose of reducing the money supply, Maittalb sophisticated financial market islacking in the Iraqi economy. volume of imports Jabri said that these measures lead to adecline in spending on goods and services, and thus will decrease the income and output through the multiplier effect, and thus low volume of imports , which depends role on the marginal propensity to import and the degree of economic openness and theextent of the economy 's dependence on foreign trade, higher the degree of economic openness has increased the degree of effectiveness of the change spending to deal with the lack of external balance policy. yielding oil and continued, this policy can be relied upon in Iraqi economy under the assumption that the stability of the oil revenues with theIraqi economy 's dependence on oil exports basic degree, stressing that the spending policy prove effective in reducing the volume of imports exclusively, away from theinfluence in the degree of commercial exposure, through its impact on overall spending away from petroleum - based exports . he continued Jabri: on the other hand, the interest rate hike and set upper limits for credit ceilings policy reflected their impact in a marked deterioration in the gross domestic product rates and lower investment rates ofsectoral growth, thereby increasing rates of poverty and deepening unemployment and this is undesirable because of its prejudice to the level of population welfare and social security.[/rtl]
[rtl][You must be registered and logged in to see this link.][/rtl]