Discrepancy between public expenditure and revenue, despite austerity

05/03/2017 (0:01 pm) - The number of readings: 483 - Issue (3868)

Baghdad / Zahra al - Jassem

Although the government reports show disparity between public expenditures and revenues derived in its entirety from oil sales, the financial advisor to the prime minister is counting on what he calls financial management "wise" based on the pressure of unnecessary spending and reduce the budget deficit for 2016 of 25 trillion dinars, to 15 Trliuna in the fourth quarter of the same year, a view that does not agree with the parliamentary finance committee that talk about what it calls the policy is correct in the state and its institutions management, slack happening in the government apparatus and not to activate the economic and key sectors such as agriculture, industry and tourism private sector.

Committee announced government financial experts, on Saturday, figures for the value of oil revenues and the value of public expenditure in the first half of last year.

The head of the committee, Abdul-Basit Turki said in a statement received (range) a copy of it, the Committee met and discussed with the representative of the international auditing firm (KPMG) a draft report the company's financial statements for the first six of 2016 for months, and that the company will issue soon, based on the contract signed with it, adding that the indicators showed that the export of oil revenues during the first half of last year amounted to 17 billion and 92 million, and 296 thousand dollars, roughly, while expenditures amounted to 0.17 billion, and 434 million and 933 thousand dollars, which means that there is an increase in the compared to revenue expenditure.

He pointed Turki, that he was also at the meeting to discuss the quarterly report of the Ministry of Oil for the fourth quarter of 2016 for following up the implementation monument measurement and calibration in the field of oil industry equipment, where the percentage of implementation in the field of oil export 100%, and expected to complete the international auditing firm completion of eight ministries scrutiny by the middle of this month and complete the rest of the ministries and five provinces in addition to the Kurdistan region before the end of August of this year.

Financial Advisor to the Prime Minister Dr. The appearance of Mohammed Saleh pointed out in an interview (term) that the budget revenues are based on oil revenues and other income, and that the presence of the budget deficit means that the government has spent more than its revenue, adding: where speculative annual deficit in last year's budget of 25 trillion dinars , it was the final deficit 15 Trliuna, which means that the government reduced its expenditures, this does not mean it did not borrow from the banking system.

He continues favor by saying that domestic borrowing of the government reached last year more than 11 trillion dinars, while the total amount borrowed from the inside and the outside was around 15 trillion dinars, persisting as saying, that the expenses are more than revenues, yes means that there is a problem and the reality of the situation, Iraq is now going through an economic circumstance is difficult, but the financial administration was wise where reduced the deficit ratio.

Confirms Saleh, also on the improvement of oil prices in the fourth quarter of 2016, with the improvement of the country's non-oil revenues contributed to reducing the deficit of 25 trillion dinars ratio to 15 Trliuna, and the wisdom of the government in control of a lot of expenses is necessary had an important role in reduce the deficit.

Member of the Parliamentary Finance Committee was delighted happy, say, revenues for the first six months of 2016, according to the availability of data, ranging between 19 and 21 billion dollars, and expenditures were more than this figure, and they are covered expenses of the cash reserves of the Central Bank, which has contributed her time in cash reserves fell to $ 49 billion, after it was up to $ 52 billion.

Said continues in an interview (range): But the situation now is different and oil revenues to the state and others have increased due to increased oil prices, also stressed the need to bridge the gaps through tax and customs activation, where she was already tax revenues in the second half of 2016 more than expected in the budget speculative.

And bridge saying: We know that a significant portion of operating expenses go to salaries and the fixed order, and so Mtoty followers inaccurate or incorrect policies in the state and its institutions management, especially with the slack existing in state institutions and non-activation of the private sector, and not to take advantage of other sectors such as agriculture, industry and tourism, these are all things exacerbate expenses compared to revenue.

He said stresses at the conclusion of his speech on the need to activate and promote the work of the private sector to follow the legal procedures and legislation laws and create jobs in the private sector, with the need to move from public to private, which are trying to work with the Government through economic reform programs.

And it founded the Committee of Financial Experts, based on the Cabinet decision, and began its work in 1/4/2007, to be the supervision of a substitute for the International Advisory and Monitoring, which currently oversees the spending of Iraqi public funds derived from the production and export of oil and oil products, which are deposited in the account particularly in the US Federal reserve Bank in New York, based on UN Security Council resolutions passed after the overthrow of the former regime as the development Fund for Iraq. This account has been awarded international immunity, so as not to be liable to seizure and forfeiture as a result of the decisions of international tribunals, may be issued for the lawsuits and claims against the former regime.