Non-traditional solutions of the general budget of the Year (2016)

1/2/2016 0:00

Dr.. As Abdul Hadi
A few days ago in one of the seminars held to discuss the subject of the general budget for 2016 presented one of the members of the Finance Committee in the Parliament and paper discussed the obstacles they face and the solutions that can be adopted for the sake of the current financial crisis exceeded, especially with the dramatic decline in oil prices during the year current and potential public revenue and its effects, and the seminar attended a group of researchers, academics and interested in the subject.

I have followed the talk that took place at the symposium carefully focusing the researcher (Member of Parliament) on aspects of financial waste in public spending under penalty of corruption for the past years and how they responded to each other without delve into the reasons for the continuation of this approach is beyond the symposium about the origin of the subject and we introduced the subject of another is financial corruption, which has become like a mirage which is difficult perceptible or constipation Boukaoth to deal with it, we are seeing signs of corruption every day in all government dealings and products without knowing when to end it and how?

The other thing which is weaker than the importance of the seminar in the hunt for the exits of the current financial crisis is that the talk was about the budget as the theme-year-old any that Dar Al-Hadith for previous budgets through the current budget in a review of the main disadvantages of these budgets according to Bending methodology can not offer realistic solutions to what can be be the case in this budget within their own data as well as Mstrkadtha with previous budgets.

In this context, I see that the new budget was adopted at the end of the day on the traditional solutions of the deficit suffered, as can be to him to grow up in the absence of check the foundations that have been adopted in building This budget, like the price of a barrel of oil and the quantity of production is estimated at (3.6 million barrels a day) as well as the volume of non-oil imports, estimated at up to (13 percent) from the budget, and in front of the dramatic changes that the oil market experienced over the past several days and open the possibilities of this on the one hand and the difficult commitments faced by the government on the other hand, I think we need unusual solutions that are the size of these challenges.

The problem that we face in the truth lies not in the approved budget type as change the budget type (budget items) to any other type does not solve the problem as the problem lies in the mechanisms for budget preparation and execution, in the first aspect, the preparation of the budget is according to what is known in the literature of modern financial «problematic Commons» where most ministries provide everything you want to do projects without regard to the limits of financial means available, as well as the projects submitted and by a very large be prepared in a manner diligence Profile without relying on economic feasibility studies.

After collecting all the projects submitted to the relevant ministries of the trade-off between them, the choice is a way of ijtihad also without being according to what is known as the financial programming that takes into account the total added for each project on the overall output level In contrast, the process of implementation of the approved projects are suffering from the problem of poor implementation or lack thereof in many of them and that it was up to the cause of Prime is to provide an initial grant to the contractor upon signing the contract with the public authorities and before starting work, contrary to what was happening before 2003 where the contractor gets to work in batches after starting Baltniv.ary The simplest measures that could contribute to overcome the financial crisis in the current year budget is to cancel the investment budget and approval of the operating budget just as it will eliminate the deficit almost as most projects are not implemented originally Because of corruption, The other thing is the importance of investing adoption on credit through the election of international companies sober solution other can be through re-working vacations import and documentary credits to transfer money can also adopt the idea of saving mandatory as a last resort or securitization of the debt of government employees for a small benefit to be These bonds are traded on the Iraq Stock Exchange.

Area can not help here to the breakdown of previous solutions but it can be urgent solutions to avoid a deficit which could be faced by the Government in the light of the current changes and some of them are still to him there is a chance for adoption in spite of approving the budget risks, In contrast, should the warning here to adopt some solutions such as increased taxes as it is unrealistic at this time because it will affect corporate profits and thus will lead

To more deflation and thus reduce the private sector and to engage in what is known financial Balhaoah especially that the Iraqi economy is on the verge stage of contraction, as well as that the solutions put forward here is not a substitute for the required solutions in the long term in order to diversify the Iraqi economy and thus diversify the general imports, which we hope it can achieve Prime Minister's visit to China, something of which what owned the economy of this country of great potential can The solutions provide us with the short and long term.