Falling oil prices widen the budget deficit gap and alarming economic crisis NEW MORNING IRAQI AFFAIRS AUGUST 23RD, 2015
With the proposals rely on cash reserves and pressure tunnels
The Iraqi Government signed a significant embarrassment as a result of the sudden drop in the world oil market, and are looking either for more pressure unnecessary expenses, and either resort to borrowing which he dropped an adviser to Prime Minister Haidar Al-Abbadi, who attributed the decline to lack of control over the global market, and acknowledged that these variables will appear results negatively on Iraq.
Mohammad Saleh appearance says the Economic Adviser to the Prime Minister in an interview with the "new morning", that "Iraq is affected significantly the sudden drop of world oil prices.
The tracks "balance still supported by 93% on oil, and that any decline in his prices means widening deficits."
And confirms that the "third country" not roads, pointing out that they either borrow internally and externally, and compression expenses ".
Economic Adviser, believes that "the Government is not prepared, under the present recourse to borrowing", stating that "the best solution is retrenchment so that were necessary during the past month and dispensable."
Despite acknowledging that "Iran's return to the world oil market after the lifting of the sanctions could affect world prices", but did not find him, "the only reason for the decline.
Saleh could not estimate the time for low ceiling and the possible return of normalcy.
But he did not exclude that "this emergency temporally ends once the demise of its causes.
And asserts that "the main reason for the decline is lack of control over the global market for oil from all parties as prone to fluctuations between the time and more recently.
He completed his favour by saying that "Iraq has not been able to in the first half of this year to address the first part of the deficit and keep the amounts aren't low figure allocated, this means the possibility of a repeat scenario that did not take Government solutions to this file.
For its part, the Committee Member said the economy and investing in a smart House, Najib told the "new morning", that "the damage the global decline in constantly increasing, in conjunction with spending to sustain the war against terror, daash exacerbated the crisis of displaced people is currently about 3 million people.
Najib said the Government started early with some action is to refer the section investment budget allocated to ministries or local governments in the provinces, the private sector companies. "
"Other decisions provided in the paper's reform, Haidar Al-Abbadi, Prime among them the abolition of certain posts and merge ministries".
And went to "administrative procedures provide funds to the Government, and not the required level, but they help fill a section of the budget deficit".
Najib pointed out "the new salary scale to be approved at a special law will help reduce differences between staff and some of the money to the State."
And called for the "application of the customs tariff and taxation in the correct manner, as well as savings on salaries over 750,000 dinars".
Najib concluded that "Iraq is not a poor country but has a cash reserve of about $ 60 billion in Central Bank through which you can resolve the crisis we need to financial management successful in overcoming the current crisis."
Crude retreated us $ 40 a barrel for the first time since the 2009 financial crisis Friday, closing low 2 percent.
Rough fell, according to Reuters, the $ 40 level, impact weekly data show an increase in the number of oil rigs operating in the United States last week, for the fifth consecutive week.