The World Bank advised to adjust spending & curb the growth of budget deficit in 2016
The World Bank advised to adjust spending and curb the growth of budget deficit in 2016
Baghdad, Omar Abdel-Latif
Warned the World Bank on the need that Iraq is working to curb the fiscal deficit growth over the next year and reforms in the areas of spending and free up resources for investment in infrastructure sectors Alajtmaih.oukal bank representative in Iraq, Robert Abu quality as part of his response to the questions (morning ) that because of the decline in the Iraq oil prices like most of the exporting countries will need to adjust the financial situation to ensure financial sustainability, as well as it needs to be amended through the development of a medium-term plans and credible in the fiscal situation and requires a reduction of current spending including wages bills and support.
He said the priorities of large investment projects that are important to ensure the growth of earnings over the medium term evaluation, noting that the main challenges facing Iraq in 2016 to curb the fiscal deficit growth and free up resources to invest in infrastructure and social sectors, especially in the liberated areas, while maintaining to basic safety nets and social support for the poor and the disadvantaged, as well as the need for fiscal consolidation by reducing energy subsidies and the implementation of the civil service reform and reform of state-owned enterprises.
He pointed out that Iraq also faces multiple challenges, but at the same time an opportunity to move forward in reforms and diversification of the economy, indicating that the deterioration of the financial situation presents Iraq's largest financial risks, calling for strengthening the financial conditions gradually through containment of spending growth and improve income generation.
The Iraqi government demanded to seize the opportunity to reform the economy to address the structural issues that protracted, stressing that Iraq is in dire need many important reforms in areas such as subsidies and pensions and the financial sector and state-owned enterprises and public sector employment and wages and contribute to achieving a higher degree of efficiency in public spending and the deepening of economic reforms aimed at diversifying the economy away from oil, warning that all reforms, if implemented successfully, it is that would encourage private sector development and job creation so For Iraq to accelerate structural reforms to liberalize the economy and promote competition.