The abolition of allowances for housing officials Rent transitional institutions .. ~
The abolition of allowances for housing officials Rent transitional institutions .. .. retired elected
Anbuge reveals austerity proposals to overcome the economic crisis the country
BAGHDAD - Hussein Tgb - Shokran Fatlawi
Adviser in the Prime Minister warned d. Abdul Hussein Al-Anbuge of scary to spending limits of pressure because it leaves a deflationary impact on the Iraqi economy, particularly on the operational spending.
He said in an interview during a seminar center «morning for Strategic Studies» titled «the budget and the problems encountered»: that «the proposals which had been prepared to minimize the effects of a lack of financial revenues due to the decline of crude oil prices in global markets move the investment in infrastructure and major projects, and restore the looted money during the former regime », pointing out the importance of resolving some of the institutions that were found to achieve transitional justice for no longer needed, as well as the conversion of some institutions to self-financing, and the formation of committees effective to recover stolen funds through a window of financial and administrative corruption.
Foreign loans from other countries and organizations promised the danger does not prefer to go to it only in narrow limits, referring to the importance of focusing on taxes and fees, which represents the prices of public goods and services, indicating that expand the important imports through ownership of agricultural land for the occupants for cash and this in turn helps to raise their interest in the also, especially after converting her sex.
And reduce costs, Anbuge suggested unpaid wages pension for any person elected, but returned to his previous position he held prior to delivery of the electoral seat, as well as giving an optional leave of not more than five years without pay for the employee and service counted for the purposes of retirement.
He commended Anbuge on the central bank's initiative to allocate 5 trillion dinars for banks specialized and 1.5 for private banks to lend to small and medium enterprises, pointing out that these steps need to be comprehensive banking system and enables the productive sectors of the absorption of these amounts manner that achieves economic viability and without the availability of these needs may be Results were negative.
The success of the private sector
He attributed the success Anbuge private sector in the work to be separated between the social and economic side, and the workers in the private sector, higher productivity for the existence of a permanent control in the field of employment.
In turn, showed a member of the Baghdad Economic Forum d. Ikram Abdul Aziz in an intervention with the necessity of activating investment projects, and that the loans went allocations paths that achieve economic viability of the country, pointing out that the issue of privatization must be feasible and meticulously studying the economic feasibility and the extent of that accrue to the country from them.
He returned Anbuge for stating the need to reduce public expenditure to 40 percent or increase public revenues by the same amount to cover the deficit has taken into account the reduction of expenditures in the budget 2016 through the pressure of civil spending to a very large limits, despite leaving it harmful effects in the economy, including investment spending which is almost close to zero.
He called for the importance of benefiting from funds generated by solving some of the institutions that no longer required the fact that a need to it is no longer, as it settled all Accessories, accompanied by the need to abolish pensions for elected deputies for four years as a commissioner by the people only for four years.
He also stressed the abolition of payment of rent for any functional site (Minister, Member of Parliament, Deputy Minister) they have the necessary funds for rent or ownership of the houses mainly, the sale of state property and ownership of agricultural land for funding and improve land productivity at the same time, being now contracts and remain the property of State, wondering: What is the reason for the state to own 96 percent of agricultural land in the country, 4 percent king Exchange this socialist system has ended?
He pointed to the importance of determining the number of members of the House of Representatives hundred Vice maximum in the next phase, as well as the importance of the abolition of the Electoral Commission the fact that their work is limited during the four years between election periods and carry the country a lot of money unnecessarily, as well as institutions no longer required, and suggested that foreign institutions competent to organize elections.
Anbuge stressed the adoption of economic policies and not the plans has failed because it is from the socialist system concepts, these systems have collapsed, and the policies they enjoy being practical and more effective in exceptional circumstances, explaining that the Iraqi economy is «messy economy» could make it economical more effective if it has to use Bagtsadaan and academics to stand the fundamental problem through the goals that the government is seeking them through the instruments of fiscal policy, particularly the state budget, which is annually issued an annual law called «the state budget law» and the two wings «public expenditure» and »public revenues» and be the ability of future period, taking into account what cashing".
He said any amount spent should turn into fixed assets or remaining assets and did not act, taking into account the existence of final accounts for the budget appear at the end of the year and get rid of the absurd, pointing out that the budget is a revenue turns into spending at the same time they do not represent confounded.
Sources of funding
Continued Anbuge saying: that the financial and monetary policy is harmonious in the country, revenues come from sources of funding are institutions, land and real estate through revenue generated or sold, including oil revenues and taxes of all kinds, which is the income president of the general budget of the state, but most states that do not have to live on oil tax revenues, which are determined by the pot whenever income tax and vessel size increases, the more revenue tax.
He pointed out that fee-for-service offering, different from the tax, as the latter imposed on certain assets, while the fees for a service to a specific person, for example the granting of building a car or vacation leave, where imposed in return fees.
And non-standard sources of funding, said: sources are used by the government in times of disasters and crises, and the country is now in the heart of the disaster, and is unusual sources of public loans and direct loans whose Kaguetrad government from other governments or borrowing from international organizations certain.
He said the foreign loans means buying foreign government bonds and this is a loan to the government with the stated amount and interest, as well as treasury transfers and treasury bills, the same idea of remittances with a little difference, since the latter is the term of 6 months or less, and deficit financing by the central bank accounts, as have Central Bank Tdfaqan, commodity flow and cash flow to control the money supply, in the sense to know a certain line, which is normal, but it is not normal when the cash flow is greater than the commodity flow generates Inflation.
While between the other side of the budget «overhead» and that is including military spending and protect the country, which is always confidential contracts are not subject to disclosure standards and civil spending on public life, infrastructure and public services are the responsibility of the government and spending of spending civil.
The export of oil
He said that the 2016 budget submitted to Parliament on the export of oil to be the amount of 3.6 million barrels per day at a price of Default and hit $ 45 per barrel multiplied by 360 days a year with the exception of days of bad weather appears revenue up to 58.3 billion dollars in oil revenues, In addition to it taxes and fees and the last two are not constitute more than 7 percent and the rest on oil revenues.
Budget to the «Gross domestic product» GDP volume up 70 percent, while in other countries such as Jordan and Egypt, does not exceed 7-8 percent, this confirms that the state dominant economic activity, then the economy depends on a commodity one name oil commodity and controlled by the market and world politics and wars, one of the fragility of the Iraqi economy requires exit and diversification of the economy Iraqi.
A great challenge
Anbuge said after the adoption of the budget Oil prices have fallen to $ 30, Iraq sells under Brent $ 7, there is a big challenge facing the country and means that there is a deficit, it requires the search for sources to meet the $ 42 billion currently on prices deficit, a real deficit and is not a policy in budgets Previous there were claims the introduction of projects and plans to diversify the economy but it has not taken into consideration.
In a detailed licensing contracts between it works according to the equation service contracts where the divide revenues 50 percent to the government and 50 percent of so-called revenue available is divided into three sections, the first investment and operational costs, which is the responsibility of the country accompanied by the payment of wages for each barrel added to production paid to him wages and the remainder of the costs and wages up to the government.
He explained that the wage share is divided into two parts and the contractor, which represents the company's 75 percent stake and the government 25 percent and the amount of the first subject to the corporate income tax and the remaining companies.
At present, the proportion of companies have begun to increase because the costs are fixed and prices fell, Vanekst equation and as a result of lower prices disrupted the picture, and what is needed is a review of administrative obstacles and giving licensing contracts from the ground up, it was possible to have our export now 6-7 million barrels, the fact that the companies will work High technology to increase production and not to keep the Statistics and energy technologies export.