Economists call for the government to take advantage of the financial crisis and rely on internal resources


Called experts, government economy, on Sunday, to activate the internal resources of the state and foreign investment to cope with the financial crisis experienced by the country without relying on oil supplier, with the Minister of Higher Education and Scientific Research Hussain al-Shahristani revealed, for lower than expected by 25% of government revenue in two weeks because of lower oil prices.
The economist said Abbas Ibrahim Bahadli in an interview for the "long", that "the adoption of the country's economy on the financial resource and sole oil, and the absence of productive sector last compensates losses lower prices put the local economy in a difficult situation due to lack of financial liquidity."
He added that "despite the negative aspects of the current financial crisis, but it's considered. A major impetus for the government to activate the other resources of the country and try to rely on internal resources such as investments and foreign collection of direct and indirect taxes"
Bahadli said that "poor planning and a lack of strategic vision over the past 12 years, to build a strong internal economy and activating the industrial and agricultural productivity institutions of the public sector and private produced a severe financial crisis can not be easily overcome, especially
In 2016. "
He said the "external borrowing and internal by the government during the current year has not only fill a fraction of the amount of the budget deficit in 2015, so it is difficult to rely on the prosthesis solutions to address next year's crisis without austerity plan apply to all the high exchange government ministries and try to legalize waste the big money in the doors of the most entertaining and useless. "
The Prime Minister and single-Abadi count, Tuesday (15 December 2015), the fall in world oil prices as a "most serious challenge" facing Iraq next to "terrorism", and stressed the government continues to reform and simplify procedures and "would not retreat from it."
The world oil prices have fallen by about 60% since the summer of 2014 the past.
The Minister of Higher Education and Scientific Research, Hussein al-Shahristani, during an economic seminar entitled (the pillars of the Iraqi economy and its challenges) was held at the headquarters of the Ministry of Education, the center of Baghdad, and attended (range Press), said that "Iraq is going through an economic crisis is unprecedented because of its reliance primarily on oil," noting that "Oil prices have fallen dramatically and out of the control of OPEC."
He revealed Shahristani for "lower than expected within two weeks 25% of government revenue," pointing out that "Iraq is seeking to offset lower oil prices by increasing production."
Shahristani stressed "due to lower imports to Iraq less than a third of what it was during the past years," and expressed hope that "Iraq compensates decline of those resources by increasing production."
The House of Representatives has approved in its meeting on Wednesday (16 / December / 2015) next year's budget in 2016 with a total expenditure of more than 105 trillion and 890 billion dinars, representing a deficit of 22.8%.
The total revenue which 81 trillion and 700 billion dinars oil revenues, which accounted for 69 trillion and 773 billion dinars The increase of 85.1% of total revenues.
The non-oil revenues amounted to more than 11 trillion and 927 billion dinars The increase of 13.6% of total revenues.
And it formed the current "operating" expenses, a salary and other more than 80 trillion dinars, and increase of 76% of the total amount of 105 trillion dinars, while expenditures were capital expenditures of more than 25 trillion dinars, and increase of 23.8%.
In turn, the economic expert Maitham Laibi said in an interview for the "long", that "the oil licensing rounds impose the state pays in full field development costs every 3 months contracts, foreign companies invested."
"The government is obliged to pay all the costs of the development of oil fields, the 17 contracted under the licensing rounds, estimated at nearly 200 billion dollars, which means that the payment of the 4.5 billion every three months, or $ 18 billion a year up to."
He Laibi that "the current economic crisis, to prevent the government's commitment Ptaakedadtha with the oil companies despite the high incomes earned from licensing rounds for nearly 5 years, which amounted to 300 billion dollars."
He said the "government suffers from a real financial crisis so by activating the economic laws such as legal customs tariff for moving the private sector, which is the basis for building economy is characterized by force and wheel to be unaffected by the ongoing market volatility and consumer protection."