08-23-2016, 12:39 AM
Report this effects the International Monetary Fund in the budget of 2017
2016/8/22 08:13:06 PM
At a time when the Council of Ministers discussed a draft general law of 2017, before he sends it to parliament, is the fear of the conditions imposed by the International Monetary Fund more serious than ever, because of the agreement between the Fund and the government.
The government borrowed from the fund over the past year loan worth $ 5.4 billion, and the period and an interest rate of 1.5 per year, as stipulated several conditions to the annual ones budget to impose new taxes on citizens, and reduce spending, in addition to reducing the budget deficit, according to the agreement between the parties.
Despite the granting of Iraq two years exempting from the payment, but the conditions under which concealed Finance Minister Hoshyar Zebari said when announcing the loan, duration, are binding for the government to be approval and consistent with respect to the state annual budget, including the budget that these two that will not be repaid in which Iraq something of the loan, two in 2017 and 2018.
Taxes and stop the appointments budget of 90 trillion
The tax one way in which is expected to be exploited by the government to earn more revenue, with especially if the budget will amount to 90 trillion dinars at most, with the deficit will reach 20%, but the obstacle that faces is its inability to impose more of them, by reference to the reaction of the street when the last time the government Halot the imposition of new taxes on consumer goods.
He says economic expert on behalf of Antoine's (and 1 n News), said that "the international transport fund to impose several conditions on borrowing countries, to know where he will spend the money that it lends to the state, including stop wasting revolutions, and Yakav appointments in the coming budgets, thus structuring the federal budget," explaining "the Fund also gave directives doors exchange followed by the government in order to avoid wasting money, in addition to reducing spending to provide part of the budget."
The expert adds, "The budget for 2017 will amount to 90 trillion dinars, with a deficit amounting to 20%, while prices will stick estimates current oil market, will not be valued at a higher price, in terms of balancing the price per barrel for 2017 was estimated at $ 40."
Antoine and excludes "the imposition of new taxes by the government to the citizens," while the draw that it "will improve tax collection and customs, in particular, improving the collection at border crossing points."
The Fund also Rferd and strict control on the doors of disbursement of the loan, and full salary and allowances for senior subordinate state employees, functional upper grades, and private, to income tax.
The value of the current budget for 2016 amounted to 105 trillion and 800 billion dinars, according to Massot Parliament in December of 2015, it refers to decline by 15 trillion in a single year.
Approving the budget in accordance with the terms of the Fund
According to Time timings of the budget, it will be presented by the government to the parliament on the tenth of next October and requires Parliament to 50 days to study them and then approval into law and become legally effective for the government, but the budget this time will be in accordance with the terms of the Fund and will not enjoy the same freedom they once enjoyed in past years.
In a press statement followed up (and 1 n News), said Finance Committee member Ahmed al-Haj, said that "required to pass the budget in accordance with the timetables set by the Financial Administration Act, public debt, and in the present time as there is agreement between the IMF and the government, we must abide by it."
Haj pointed out that "the first of the Convention item, refers to the preparation of the budget under the conditions prepared by the International Monetary Fund, which include the lack of expenditure and increase revenue, and revisit the high salaries, as well as increase the tax base and the multiplicity of taxes," while ruled that "the imposition of taxes on fuel within the budget."
It marched agreement between the government and the oil fund on the loan towards spending cuts of about 13 trillion dinars, without prejudice to the ration cards and a network of social welfare and affairs of the displaced.
Economic Adviser to the Prime Minister and the appearance of Mohammed Saleh (1 n News), said that "the conditions under which the fund also imposed his part, said in Tslaahat pursued; monitor the Integrity Commission and the Office of Financial Supervision and devices anti-money laundering in financial transactions, in addition to the settlement of dues of oil companies and avoid accumulation of dues,"
He pointed out that "the International Monetary conditions also included a full income and allowances of senior staff subject to income tax, and the exclusion of the armed forces and junior staff of the income tax provisions."
It is noteworthy that Iraq is the first installment of the loan amount had received a 5-billion dollars, the middle of last July, was valued at $ 634 million, and insert it into the doors of the federal budget, specifically for the displaced, education, health, waiting for the completion of the total value of the loan as agreed between the parties to the table.