The impact of debt in direct spending

4/24/2016 0:00

Mohammed Sharif Abu Mayssam
It is natural that is resorting to external debt as a fiscal deficit in the general budget processing tools at a time when the country is experiencing a severe financial crisis, caused by the continuing decline in oil prices compared to what is planned in the year's budget law in 2016 as well as the continued rise in the war on terror expenses, However, our experience with debt over tyranny decades has left us a legacy bad with the so-called debt breath caused by financial mismanagement, and that's what behind the pan involved in economic affairs what can be called a «phobia debt» as it is feared many of them that will depend on the will of the political and economic country's creditors international who knew the high abilities in shackling countries indebtedness as it seeks to get out of the crises in the transition economies totalitarian systems to systems of social market economy or capitalism, and on this basis would prefer a lot of economists resort to domestic debt through the issuance of government bonds sold to the public to address deficits , or seeking to move the currency bloc chunky in homes rather than resorting to external borrowing, which often result in rates of interest over the life of the debt as well as the delay benefits that may result from the lack of commitment to make payments in a timely manner or not adhering to the requirements dictated by the creditors on the country , such as the restructuring of the public sector through the privatization program and to stop the creation of government jobs and going to the private sector in the support tools and so on.

However, that is striking in the case of access to foreign debt from the World Bank or the International Monetary Fund or even with regard to the Japanese loan and the loan of the Islamic Development Bank, is a commitment to direct spending and ensure the money going to their goals despite the scarcity, as opposed to what is known about the financial management in the executive organ of the state during the years after the change, which became popular attributes inaccuracies in directing spending Fjbelt those actors of financial mismanagement and lack the ability to direct spending, as it directs the World Bank loan for this year, according to Bank into three areas: reform of the public sector wage system and reduce spending on energy subsidies and support transparency in the financial and non-financial institutions of the state, and note accuracy in direct spending in spite of the limited amount about the enormous sums which is monitored by the general budget annually which is often wasted due to poor implementation and mismanagement at once, as it does not exceed the World Bank for Iraq loan in 2016 more than 1.2 billion dollars, which is part of the $ 6 billion division over several years starting from the year 2015, it seems that the World Bank loan for ages liberated areas amounting agreement (350) million on 07.12.2015 were part of this total loan.

But to wonder here and away we go about managing money that went down the drain in the final accounts of the ministries and provinces boxes over the years after the change »If the amount of $ 350 million are able to do something for the reconstruction of liberated areas, an amount that will result in rates of interest, and many of the commitments on the Iraqi side, how similar amounts of this amount has been wasted in the implementation of non-conforming projects, or have been implemented as roads or sidewalks or afforestation projects or sewage systems projects and then re-executed by the intersection with the work of other projects for electricity or or water systems or expansion here or rubble there, and how many of these same amounts that have become spoilers in the wombs as hopeless loans from government banks repaid the granting of borrowers and could not be recovered due to the influence of these or strong links to the owners of influence. »

The country has barely wake of debt and compensation perched on her chest over the years, the rule of tyranny, even slipped a new debts due to financial mismanagement and poor spending in the midst of the scheme and other financial deficit caused by exaggerated perception of the size of the oil revenues under the supervision and auspices of the International Monetary Fund and the World Bank despite expectations of continued low oil prices and the high volume of expenses resulting from the war on terror.
Having enjoyed two institutions International Tribunals to intercept a year on what is contained in the general budget of the estimates in the financial abundance time and insist on reducing public spending and the estimated sale price of a barrel and the quantities of oil production as well as to support the market and call for privatization, they were regarding the general budget in 2016 and before 2015 interacting so in the granting of loans and the development of a long list of requirements that lead by the overall transition toward liberal capital, which leaves it to the top of your absolute freedom in managing the affairs of the country money, rather than focusing on the financial and administrative corruption, which Otiha all the financial capabilities of the country and instead of focusing on direct spending in relation with the funds in the general budget, we find the focus on the requirements and the accuracy of spending in the granting of these loans, which do not constitute amounts nothing about the compound deficit of the general budget of the size, but the passage of the years and the succession of debt and the consequent obligations would be a real constraint Stsaq router successive governments to be a subsidiary of the global economic system that you do not know a thing as government sectors in the countries cited by the Globalizing its system, only then we'll find out what went wrong to him.