Expert: the state's role in activating the basis of production sectors

11/11/2015 0:00

Baghdad follow Joseph Zayer
with the launch of talks between high-level government delegation and senior experts of the International Monetary Fund officials to study the country's financial and economic situation and ways to support and assist the Fund in the Jordanian capital Amman.

Consultations held to reach a memorandum of technical understanding on the Fund's surveillance program to strengthen public financial management and strengthening cash management and provide stability to the financial sector in the country.

Monetary Fund to deal with economic problems by scientific purely without putting considerations in its accounts for exceptions on humanitarian grounds, such as the support provided by the state to people of any kind.

This is the reason for making this difficult talks as this international organization providing assistance physical and counseling to overcome the crisis according Ahtaha long experience and relevant experts to address the economic problems that put pressure on the economies of countries of the world, and with that many observers are preparing to resort to the IMF and the World Bank as the last treatment.

The economist d. Ahmed Abrihi Ali said in his book «the international financial economy and monetary policy», on borrowing economic measure: either borrowing from abroad represents a setback disappointing because Iraq is not over from the previous indebtedness processing program.

It is known that many obstacles suffered by Iraq in the file of this indebtedness and the intransigence of some creditor countries in the liquidation of this file, representing the whole threat to the international financial center for Iraq and Jager resume it carries natural economic relationship with the world.

It confirms Abrihi on the importance of activating the production sectors and bring it back for the exercise of its proper role in the development process after addressing the problems he says is still the general economic establishments suffer a shortfall in toll revenue in the aggregate, in the sense that it does not pose a tributary to support the financial budget, but a burden. He adds: It is not expected to decline this burden in the near future.

Therefore, the non-oil revenues the field will be non-governmental sectors: production, goods and services that is spent by the private household sector, including imports, and corporate income and personal income, including employees of state agencies and registration fees and transfer ownership salaries.

And the agriculture sector wrote Abrihi: in the agricultural sector, and despite The government's withdrawal from productive activities, the future of agriculture will depend on the government effort mainly because must of dams, reservoirs and set up a new quench networks and to replace the existing ones another on different technical grounds.

Then Abrihi address to expand the non-oil revenues, a goal that the government is seeking to achieve a measure to address the imbalance rentier Iraqi economy and says: The amount of non-oil revenues, which will be extracted depends not only on the tax bases of all kinds size, but the efficiency of tax systems and collection of fees and this can not be changed in one year and with the exception of employees of state agencies' salaries can not talk about the pot tax definable procedurally without confusion approaching of arbitrariness often, and there is a tendency inherent socially and administratively to reduce revenue to tax.

Addresses Abrihi other action to address the budget deficit and says: In seeking to finance the deficit, may lead the government resorting to a conventional sources of internal borrowing by remittances, purchased by banks, to depriving the private sector of the opportunity to benefit from these deposits which will cover banks by receiving remittances to finance Asttmarth by borrowing, and thus shrink the investment activity of the sector private.

The marks Abrihi important fact he says that the budget deficit better occasion to recall the major economic truth to restore a large number of and the growing needs competing for limited resources, and that progress towards the path of justice and well-being more generally, subject to the ability of society to rational trade-off between the needs and the efficient disposition of resources to fulfill the most important needs and the least important.