Call for a reduction of public debt in the budget of 2018


To keep it under control
Baghdad / Emad Al-Amara

The budget of 2018 approved financial revenues of 91 trillion and 643 billion and 667 million and 236 thousand dinars, calculating the estimated revenues from the export of oil on the basis of the average price of 46 dollars and the export rate of 3 million and 888 thousand barrels per day, including 250 thousand barrels of crude oil produced in the northern provinces;

The total deficit planned for the federal budget for the fiscal year 2018 amounted to 12 trillion and 514 billion and 516 million and 498 thousand dinars, covered by the abundance realized and then internal and external borrowing.

And between the academic economist d. "It is important that there be a clear picture in the budget items on how to pay the debt both internally and externally, and make it always under control to keep away from accumulating, which may compound the difficulty of repaying the date of entitlement."

Economic resources

"Iraq, with huge economic resources, is able to control its debts if there is a strategy adopted in the management of public debt, and that the current circumstances may make his inability to manage his public debt, an obstacle to the policy of investing this debt annually."

"Given the challenges Iraq faces in controlling its financial capabilities and managing its public debt, there must be strict policies and measures in controlling public spending, which should be included in the public budget," he said.

Activation of sectors

Called the narrator, to "activate the provisions of the general budget of the positive side through the adoption of strategies to work on the revitalization of economic sectors to diversify sources of national income, which strengthens the general revenues that are in the interest of the general budget, and not rely on oil revenues only," noting that " 50 percent of public spending under low price conditions.

Therefore, unwarranted spending in the current budget and budgets should be reduced. Control of spending should be tightened by tightening financial controls and enhancing the role of integrity, while maximizing public revenues in a way that does not decrease. The people of the citizen.

Financial Reserve

"The importance of adopting fiscal policies commensurate with low revenues in the preparation of budgets for the coming years to reduce the deficit as much as possible, and reduce the recourse to the financial reserves in the Central Bank of Iraq to fill the deficit in public budgets in order to preserve the financial reserve of Iraq, which is one of the economic constituents of Iraqi society" .

He stressed the need to direct the amounts borrowed to finance public service projects to improve their level, especially in the field of electric power, water, health and education services, and to make a diplomatic and financial effort to enter into negotiations with the Gulf countries and exploit the change of positive Gulf position from Iraq to reach a final solution to Iraq's debt with these countries.

Signing contracts

He pointed out that "financial institutions have to mediate with the oil companies that have been signed licensing contracts with them to review some of the items included in those contracts, especially with regard to the large costs borne by Iraq as a result of the development of oil fields and commensurate with the price of oil in the international market, Interest of increasing revenues of the state budget. "

"It has become necessary to take quick and practical measures to address the decline in oil revenue revenues to finance the budget items, through the main measures of reviewing public budgets away from rent projections and raising all unnecessary expenses," he said.

Annual growth

He called for "taking measures to address the budget deficit by stabilizing the budget growth by adopting a rate commensurate with the annual growth rate of the gross output and not making its development a function of oil rent."

There should be an efficient allocation of financial resources to the investment platform, And to increase their ability to provide the basic material components to achieve economic development He

concluded by referring to the importance of "activating non-oil revenues to counter the risks of lower oil prices on the budget, which is the main source of budget preparation in non-oil countries ,

Such as the activation of the tax system and public fees, through the need to carry out real reforms in the tax system and promote it to the level that achieves the objectives required of it, primarily the goal of funding for public budgets.