Baghdad recognizes the budget in 2015 worth 103 billion

by **Ponee** Tue Dec 23, 2014 8:51 pm

Iraq's cabinet approved a draft federal budget for next year worth $ 103 billion, with an average deficit of about 20 billion. The Iraqi Prime Minister Haider al-Abadi said at the beginning of this month that falling oil prices forced the government to cancel the 2015 draft budget and embark on a new draft.

He said Finance Minister Hoshiyar Zebari told Reuters news agency that the budget will be presented to Parliament after that regulate the legal drafting committee comprising the Minister of Finance and led by Iraqi Prime Minister. The Committee also includes Bahaa al-Araji, the deputy prime minister and the ministers of planning, higher education, scientific research and transportation.

Iraqi parliament speaker has called Salim al legislative institution to convene next Thursday to discuss the budget, which is the price of oil was adopted on the basis of $ 60 a barrel.

Jobs and the deficit
and the budget next year include the introduction of more than a hundred thousand new jobs, of which 83 thousand to the ministries of defense and interior. First, the ministry acquires five budget, which relies 95% on oil revenues.

Because of the increasing budget deficit, Baghdad will resort to issuing permissions for the treasury and government bonds to finance the deficit, and will borrow from local banks, according to a Zebari. As the country's authorities are planning to withdraw some of the financial shares deposited with the International Monetary Fund , and the imposition of a tax on imported cars, and slices of imported mobile phones and the Internet.

Iraq has yet to approve the budget year in 2014 because of disagreements between the political blocs on the terms and clauses contained in the budget law, and because of the security situation following the disturbance control the organization of the Islamic state over large areas in the north and west of the country.

Current spending
Zebari said that no data about public spending draw the current year, but it is expected to exceed the amount of 123 trillion dinars ($ 103 billion) planned in the budget of 2015. The pay higher spending and falling revenue Baghdad authorities to approve the austerity measures as a result of the very low oil prices in global markets since last summer.
He noted the Iraqi Minister of Finance that his country's economy suffered a major Sdmtin in the current year, fully to the emergence of state regulation and the consequent military confrontations and losses to agriculture and the costs of care displaced, and the second shock is the drop in oil prices.

It should be noted that the budget year 2015 comes just weeks after the conclusion of the central government in Baghdad and the Kurdistan region of Iraq agreement ended the differences between the two sides on oil exports and the region's share of the federal budget.