The budget deficit and lending policies

8/10/2016 0:00

Ali Hassan al - Fawwaz
Talk about the economic deficit, it means talking about the efforts being made to bridge the gap which, set policies and wizards that will provide funds to overcome them, and through the methods of the most important borrowing countries and the banks, or by obtaining guarantees bonds have lids, or through activation effort investment and the private sector.

This topic is related to the nature of economic alliances to Iraq, where he rejected the US Congress (grant of security to the Iraqi bonds are expected from the United States) and under different reasons, probably because Mayanet former Iraq from mismanagement and spending, and an unprecedented rise in serious levels of corruption .

Linking the budget deficit to oil prices and volatility recently will continue to be a matter of constant debate, because most of the rentier economies problems is its dependence for Mrkzaat wealth President, and the nature of the political administration of the national economy, and mechanisms of action in the investment and other fields, as well as the weakness of its ability to create financial abundance of non - economic sources oil.

Iraq 's failure to get two billion dollars in debt bonds to address the economic gap is not frustrating, but does not mean that the deficit will make it threatened the economic structure by not securing foster financial coverage for treatment, or even face the repercussions on the level of salaries and public services benefits, and figured out that economic policies graceful and wise to adopt, and determining spending limits, and control of corruption files, will make viable coexistence environment with debt first, and facilitate appropriate opportunities for Satrhalleha secondly, as well as to reconsider the specific prices by the government for a barrel of oil will also provide financial margin can ensure that address some of the debt and bridging the gaps in the budget.

Budget 2017 economic and guarantees the problems faced by the 2017 budget for the previous budgets may not differ, the deficit in this budget will remain in place, albeit uneven borders, but characteristic of the budget next year is the change that has happened because of high oil prices, and the approval of the re - pricing of a barrel of oil to $ 43, which it means the provision of additional funds for the budget, and to mitigate the serious deficit, which is a major reason for the objection creditors in the international Monetary Fund and many countries to lend to Iraq to fill the gap in its budget deficit and secure public services to its citizens.

The international Monetary Fund approval of a loan for Iraq worth $ 5.34 billion over three years reveals the Fund 's intervention by Iraq committed, in order to have the door open to get more than $ 12 billion in aid and loans from the World Bank and major industrial countries, and the most prominent of these obligations effective measures to control economic policies, and control over spending and consider the revitalization of many events that will achieve acceptable growth of the economy ratios.

The listing matches draft of the proposed budget for Iraq in 2017 to reflect a new reality in the general directions of this budget, because of the adjustments that were made, notably adjusted oil prices, which put the budget blueprint in front shortage can be controlled, and up to 12 trillion dinars, compared with expectations Panevaqat amounting to 90.224 trillion dinars (77.6 billion dollars).

It has become clear that the prospect of any budget can not be away from the orientations of economic policy, and the government 's ability to control its tracks, and to control expenditures randomized, open the files of corruption at all levels, compared to banking policies tuning, something that should be subject to a set strict control procedures, and thus contributing to the preservation of the national reserve on the part of , and control over policy to act in hard currency from another side, especially Maitalq issues remittances abroad and sale of foreign currency through the central bank, or through other banking outlets.