Off-balance sheet


Mohamed Sharif Abu Maysam
Hedge exaggerated in estimating the price of selling oil barrels at $ 46 in the budget of 2018, which we pointed out in the preparation of the budget in previous articles, raised above the ceiling of exaggeration as a financial problem with the contraction of the budget in its investment and the method of funding deficit through borrowing after The price of OPEC's oil has jumped by 70 dollars per barrel and sales prices have not fallen below 55 since the beginning of this year.

Which makes the rate difference until this moment between the price of the guess and the price of selling prices about $ 17, and therefore the price difference for the past six months in the light of the budget approved the amount of daily sales estimated at three million and 888 thousand barrels per day,

up to about 66.096 million dollars can be calculated Over a period of six months by multiplying the number in 180 days to be the amount of difference about 11.9 billion dollars and offset the amount at the exchange rate of the budget capacity at 1182 dinars to the dollar is the final outcome of 14 trillion Iraqi dinars,

the difference in selling prices for the price of the guess for only six months, Covers and increases the comp The planned deficit of 12.5 trillion dinars, which means that we urgently need a supplementary budget through which we can free from the conditional indebtedness complex and free with us the investment budget from the restriction of Alakmashi.

Thus, we have no choice but to adapt the text mentioned in the budget law Article 2 - 1 - which states that (this deficit is covered by the abundance achieved and then internal and external borrowing ..) as the abundance of the need to borrow and is achieved, which means the absence of the need to borrow.

The abundance here does not mean the amounts collected from the highest revenues of fiscal year 2017, as it can refer to the abundance of the increase in oil prices or increased sales quantities, and as long as the explanation here in favor of the country to save from the conditions of creditors and cumulative interest rates on the origin of debt, Procedures for recourse to foreign debt are considered to be detrimental.