Iraq postpones implementation of projects to cut spending

Views 37 Date 21/08/2016 - 20:20

BAGHDAD / Economy News ...

Iraqi planning ministry began preparing for the 2017 budget, especially in relation to the completion of the investment side.

But the financial crisis in which Iraq is going through the ministry to pay «to try to compress expenses as much as possible, and not to enter into new financial commitments, in order to ease the burden on the state treasury». They pointed out that the draft budget «Saakhlu of any new projects.»

He said ministry spokesman Abdul Zahra al-Hindawi said in a statement to «life», that the ministry in collaboration with those concerned and local governments «seek to find appropriate solutions to fund 4,500 ongoing project over the next year».

He pointed out that the proposals laid down for it, is a way of funding for projects or offer investment opportunities for companies wishing, as well as the involvement of the private sector in financing ».

The ministry was omitted in the earlier 296 projects at a cost of 10 trillion and 652 billion dinars (about $ 9 billion), saying it «is not a priority at the current stage, in 2169 postponed the project at a cost of 36 trillion and 720 billion dinars».

And sources of financing of projects, Hindawi said that the ministry «will finance part of the investment side of the allocations in the budget next year, including projects that have reached an advanced completion rates, with a focus on completion as soon». He said that the ministry «will take into account the service projects that affect the lives of citizens, such as water, sewage, roads, bridges, electric power and infrastructure».

Hindawi pointed to the committee set up by the Council of Ministers headed by the Minister of Planning and membership of the Governor of the Central Bank of Iraq, and officials in the ministries of the state, to develop a structure for the distribution of benefits Contractors, stressing the launch of «the first batch of them and is payable, the central bank took over the responsibility of paying dues through the issuance of treasury bonds». He explained that «the contractor who completed the project at rates above 80 percent, making him a full financial dues, that vows to complete in the fastest time. While disbursed 40 percent of the projects that do not exceed the rates achieved 80 percent, and the rest of entitlements after the completion of the project. »

The Economic Adviser to the Prime Minister and the appearance of Saleh announced that «financial constraints still exist, but the risks have fallen as a result of the availability of funding through borrowing from the International Monetary Fund, and budget restructuring and retrenchment and re-prioritization».

And he confirmed a member of the parliamentary Finance Committee Magda Tamimi, the financial crisis in the country because of low oil prices «made the government needs foreign loans to bridge the shortfall in the budget, but that does not mean the country's dependence on these advances without activating other vital sectors». He pointed out that Iraq «large internal and external debts is unable to repay.»

And it announced in a statement that economic activity «shrank by 2.4 percent in 2015», unexpected «to grow by 10.3 percent this year». She noted that the government «will reduce the non-oil spending in this year's budget by 15 percent».

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