Saleh: next year's budget deficit can be treated

9/18/2016 0:00

You can make a change in its structure and transfers for the benefit of reconstruction

BAGHDAD Shokran Fatlawi

Featuring 2017 budget year next to my optimism and positive bright even though they do not vary much from the current year's budget, but in the adoption price of oil, which, as well as expectations of increased oil production volume to rates achieved revenues in the framework of the difficult financial equation faced by the country from the war on {Daesh} The terrorist and the decline in world oil prices since 2014.

He announced a financial advisor to the Prime Minister Dr. The appearance of Mohammed Saleh, said that the side optimistic for next year's budget is the possibility of a change in its structure and make transfers for the benefit of reconstruction and construction with the capacity to deal with its deficit of around 34 trillion dinars from internal sources and external represented by the Convention with the Bank and the International Monetary Fund and international bodies chock, or asylum to borrow Procedure.

He predicted favor to have the roof total Alanvaqa budget about 103 trillion dinars and that the budget year turn in 2017, which was approved by the Council of Ministers of the war budget to a peace budget after eliminating gangs «Daesh» terrorist and turning a lot of high packing expenses to the field of reconstruction and stability of cities and infrastructure rapid infrastructure construction and other joints such as the operation of water systems, health units and schools.

Operational spending

Financial Advisor to the Prime Minister in his speech for the «morning» said on the sidelines of an economic seminar organized by the recent progress of policy development institute that the priorities of operational spending will be for salaries and wages and social welfare without compromising them, noting that the budget year 2017 technically not different from the 2016 budget year, but different pricing oil, where the price of a barrel of oil in 2016, $ 40 a barrel for a while in the next budget to $ 35 per barrel, the barrel returned calculating this price affirmative action the fact that oil prices will range between $ 40-45 per barrel.

production volume

With regard to the budget and production of oil Saleh explained that what is required to increase the volume of production for the current year, production in the framework of the financing equation difficult and roof of the proposed budget for 2017 with respect to the price of the barrel and the volume of production of 3.88 million barrels, noting that it did not affect the deficit, which jumped from 24 Trliuna size 34 trillion Dinar.

Maximum energy export

Saleh revealed the existence of a problem is at maximum capacity for export amounting to 4.1 million barrels, and the difference between planned for export and absorptive capacity is 200,000 barrels per day, which is enough to meet domestic consumption of 650,000 barrels, indicating that the investment capacity of oil is good in light of the modest allocations with a dues financial companies and licenses required repaid.

Improve negotiating conditions

He also called for the need to improve the negotiating conditions for licensing contracts and taxed in a clear and transparent to the presence of tax evasion for these companies also called to the importance of the study of moderating the costs of the large waste, pointing out that the total revenue for 2017 will amount to 70 trillion dinars of oil revenues 58 trillion dinars and other income 11 Trliuna and the barrel price will be $ 35 and the amount of current expenditures 76 percent and investment 24 percent.

Future investment plan

Saleh concluded that the investment budget will be mostly for the oil sector and power sector As regards the structure of long-term infrastructure, it will depend on donors, and directions of future investment plan of the Ministry of Planning and according to investment plan 2018 - 2023, which will be one of its aspects structuring infrastructure in the country, especially those that have been damaged , stressing that the terrorist organization destroyed more than 140 bridges and a large number of infrastructure.