Planning: 2016 austerity budget and loans do not clog the deficit

Sunday, December 20, 2015
The Ministry of Planning, said that the financial budget for 2016 and realistic austerity and free from investment aspects, indicating that "loans to Atsd deficit."
He said ministry spokesman Abdul Zahra al-Hindawi that "the budget is not commensurate with the size of investment projects and this is because of the lack of revenue because it is barely sufficient operational side, where there are a lot of expenses, including staff salaries and the requirements of the popular crowd." He added that "this year's budget free of new investment aspects but perpetuate the previous projects that began meted has not been completed or perhaps deleted or be delayed, explaining that" the budget austerity and realism in line with reality, he said, adding that "the foreign loans are not able to bridge the deficit." Hindawi pointed out that "the loans have negative and is able to plug in the budget aspects of it are often soft and not commensurate with the orientations of the government, noting that" the budget talked about some processors such as imposing taxes or resorting to domestic borrowing. " The House of Representatives has approved in its meeting last Wednesday of next year's budget in 2016 with a total expenditure of more than 105 trillion and 890 billion dinars, representing a deficit of 22.8%. The total revenue which 81 trillion and 700 billion dinars oil revenues, which accounted for 69 trillion and 773 billion dinars The increase of 85.1% of total revenues. The non-oil revenues amounted to more than 11 trillion and 927 billion dinars The increase of 13.6% of total revenues. And formed the current expenditures [operating] a salary and other more than 80 trillion dinars, and increase of 76% [of total expenditures 105 trillion dinars] while capital expenditures were more than 25 trillion dinars, and increase of 23.8%. She said Article IX / I of the budget law: [specify the share of the Kurdistan region of 17% of the total actual expenditures are paid from the Federal Ministry of Finance and the consent of the Prime Minister. And it identified the share of oil in accordance with the agreement between Baghdad and Erbil province, which is required to hand over 550 000 barrels per day of production [250 000 barrels and production of Kirkuk [300 000 barrels in exchange for payment of its share of the budget by 17%. The second paragraph of the same article pointed out that this ratio is the sum of the actual spending [current expenditures and expenses of the investment projects] federal budget after excluding expenses sovereign ones. It is noteworthy that, the World Bank, announced last Friday, agreed to give Iraq a loan of one billion and 200 million dollars to assist in controlling the financial and improve the energy sector conditions, and to compensate the decline in oil prices and rising security costs, for its part, announced the Ministry of Finance yesterday that Iraq will receive the amount the loan within the next few days and by the end of this year.