Economic Commission expects the weak purchasing power in Iraq in 2012
On: Sun 01/01/2012 6:24
Baghdad / economic-term follow-up
Commission expected the economy and investment representative for the weak purchasing power in the country for 2012, citing not to increase the salaries of employees, retirees and increase the operating budget in the investment budget in 2012.
The Ministry of Finance had announced earlier that the budget 2012 will not see any increase on the salaries of employees or retirees to intercept the International Monetary Fund on this matter.
A member of the Committee of Economy and Investment Amer winner for "Twilight News" that "increase the operating budget caused by the prevention of increase in salaries of employees and retirees, noting that the decline in the investment budget would stop providing jobs for the unemployed, which will lead to poor purchasing power of the citizen, He said the winner: the entry in the absence of the investing companies and investors to the country, will increase the unemployment rate within the community. "
He noted that the International Monetary Fund has warned the government of the height of the operating budget year after year, and threatened to raise support for the budget if it does not reduce the operating budget next year, He said winning the continuing political crisis and the deterioration of security conditions impede the entry of firms invested, and will have negative repercussions on the living conditions of the individual, "calling the blocks to speed in solving the problem of the current political and placing the interests of the general party interests and Class for the advancement of services and the elimination of unemployment in the country."
The government had approved the budget for the year 2012, valued at $ 100 billion, an increase of 22% from the previous year, a shortfall of about $ 13 billion, as revealed the parliamentary finance committee from reaching the operating budget 70% of the budget in 2012.
For his part, said a member of the Finance Committee Haitham Jubouri that the next financial budget without the presence of any increase in the salaries of retired employees, except in the event of increased oil revenues "for the first six months" of next year.
He's Jubouri Agency (news) that the financial budget for next year when it was modified by the government led to the reduction of operational matters relating to the budget of all state, including the increase for the salaries of retirees and employees.
He noted that the budget Jubouri fitted with a paragraph in the article (23) that in the event of increased state revenues from oil revenues for the first half of next year, "ie the first six months of next year" will be added to the salaries of retired military personnel and civilians, as well as staff.
To that member of the Economic Commission warned Nora Salem from Iraq affected the global recession that the economy unilaterally, calling at the same time to develop appropriate solutions.
Said Salem's Agency (news): It is likely to witness a new world economic crisis be stronger than the previous one, noting that Iraq will be affected by the annual Baaradath being dependent on oil only.
She added that the global economic crisis caused by low oil prices in world markets and this will affect the Iraqi economy as Rieia.
Salim called on the government to develop appropriate solutions to avoid this crisis as a crisis of unexpected hit America and Europe.
She pointed to: that the central bank has a large reserve of up to (60) billion dollars and is considered a strategic reserve for undistributed Iraq in the event of unforeseen circumstances or economic disaster in the country, can be used in this reserve.
The International Monetary Fund objected earlier to the general budget for the year (2012), after which he considered that the operating budget of more than (75%) and the investment budget (25%), and was its response to the government to modify it.
The House of Representatives had voted on the budget for 2011 of $ 81.9 billion dollar deficit of $ 13.3 billion is covered by the amounts retained from the previous year's budget, borrowing internally and externally, while the operating expenses $ 56.4 billion, while the capital expenditures $ 25.4 billion on the basis of the rate of 76.5 dollars per barrel of oil at a rate of 2.0002 million barrels a day, including 100 thousand barrels of the Kurdistan region.
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