Economist: 2017 budget to meet its obligations with the private sector


Views 23 Date 30/10/2016 - 21:03

Economy News / Baghdad ...



Said economist Ahmed Abrihi, that year's budget in 2017 is an extension of the 2016 budget, noting that the new budget is able to fulfill its contractual obligations with private contractors, farmers and peasants to pay their dues implications for years.

He Abrihi in an interview for "Economy News" it was necessary to mention in paragraphs 2017 GDP rates of the budget and rates of entry of foreign investment and the contribution of domestic investment and indicators of the balance of external payments, calling on the House of Representatives to be careful in making public budget on track and address macroeconomic aspects of Iraq, especially the fight against poverty and reduce unemployment.

He explained that the issue of the deficit in the new budget and ways of financing, the deficit represents the amount of government demand is financed by borrowing or lose government funds that exchange liquidity to finance the deficit, when borrowing deficit financed in the conditions and controls lead to a lose-oriented private sector credit, or the total requested by the same deficit it means removal of resources from the private sector to the government sector.

He said the deficit financing from abroad do not resort to him governments usually only if accompanied by a large deficit in the balance of payments are not enough reserves to filled, meaning that borrowing from abroad is intended to avoid foreign currency shortages.

He added that the budget 2017 is able to pay employees and retirees' salaries and payments to the families of martyrs and sustain the battlefield momentum against "Daesh" and secure the benefits of farmers, but it remains an important aspect of which is that the accumulation of budget deficits lead to economic problems could lead to a critical situation.

He pointed out that it is necessary that the government take rapid and sound processors in the first subject of the revitalization of the private sector and embark on privatization and gradual manner and the fight against financial and administrative corruption which is similar to the black holes that eat away at the body of the Iraqi economy.

He said, the reform of public finance sector process that includes a package of measures needed to address the imbalance and measures on both sides of the general budget, expenditure and revenue, so requires improving aspects of public spending and the use of optimal use of resources and reduce the size of spending technology without harming the poor class.



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