Parliament: The government will resort to external borrowing to fill budget deficit

By Mohammed Emad

26/11/2015 11:14

Brother - Baghdad
MP for the National Alliance Haider molar, said the government would resort to external borrowing in order to bridge the deficit in the 2016 budget next year.

He said the Lord in a statement received for News Agency (et) a copy of "The government will rely on borrowing from the World Bank and the Japanese Agency and other banks, which will help Iraq in the allocation of funds for the implementation of infrastructure and services projects through payment on credit."

He explained that "other loans which will be provided to the government is the internal borrowing from banks in the country."

The House of Representatives, concluded in its meeting Sunday, to discuss the draft federal budget for fiscal year 2016.

The total budget expenditures next year, 106 trillion dinars, compared to the amount of 119 trillion dinars for 2015, a drop of 11%, while the estimated federal budget deficit for next year 22.7 trillion dinars, the equivalent of 21% of the total expenditure.

He said Finance Minister Hoshyar Zebari during hosted by 17 of this month in the parliamentary session, the government exceeded the real concerns about the disable state and non-compliance with its obligations to pay staff salaries and other dues.

Zebari said that the government was able to reduce the deficit from 25% to 22%.

The Council of Ministers approved during its meeting Tuesday, to amend the draft federal budget for fiscal year 2016 Law sent to the House of Representatives.

The International Monetary Fund hinted in 11 of this month, a large loan for Iraq condition removal of fuel subsidies.

The head of the IMF mission, to Iraq's Christian Gooch, "The IMF is expected to gross domestic product of Iraq recorded growth of 1.5 percent this year due to increases in oil production and that the deficit in the current account rising to 7 percent of gross domestic product."

It is said that, to get a loan from the International Monetary Fund will help Iraq OPEC member to achieve the financial stability to the conditions while suffering because of falling oil prices and the costs associated with fighting the terrorist organization Daash.

He informed a senior IMF official said last month that the new loan will be the largest of Iraq "several times" of the emergency funding of $ 1.24 billion, the Fund has agreed to be submitted in July.

And any large loan from the IMF for Iraq will come from conditions such as Baghdad steps to cut energy subsidies [include hydrocarbons such as benzene, fuel, etc.] and the reform of state-owned enterprises which steps may be difficult at the political level.