An invitation to take economic measures to support budget

by **Ponee** Sat Jan 10, 2015 9:41 pm

at a time when the World Bank count falling oil price that constitutes «opportunity» for some developing countries to rebuild their financial reserves and a cushion against the new economic shock, called for an economist to activate sectors productivity, especially that Iraq needs to diversify its financial revenues and reduce dependence on oil in the financing of the budget, especially after the decline in prices to the low rates compared to previous years, requires - according to expert - to take decisive economic measures.

After the price of oil fell by more than fifty percent since June last, Even under fifty dollars roof barrel (Brent down below $ 49 a barrel on Friday but closed above $ 50), sees economic expert Dr. Hilal Taan need to exploit the non-oil resources enjoyed by the country and the development of the reality of the productive sectors quickly to minimize the effects of the decline in oil prices in the economy of Iraq warning not to take such a step when the price of a barrel of oil to $ 30 because it would cause an economic catastrophe.

He Taan in a statement »Sabah» that the tourism sector in the country has not invested as it should, as well as the laws and regulations currently in force do not help to promote economic reality, pointing out that the treatment of the lack of electricity will contribute greatly to activate the agricultural and industrial sectors and the operation of labor Miada to provide employment opportunities for the youth and then reducing crime and terrorism.

He called Taan based on economic profile in Iraq to the need for decisive action and reduce corruption and proper planning correct vision through the use of academic expertise that abound in the country, stressing that the reduction of the salaries of the three presidencies effectively would contribute to reducing the proportion of Almoisna.fa the same context, the inability of the parliamentary Economic Committee announced, prepared proposals for the diversification of the federal budget revenues, with renewed its warning dependence on oil as the sole source of the budget.

The committee member said Ahmed Salim Kanani: In a press statement, «must assign budget and diversify revenue which», adding that «the budget relies on rents oil only, while in all countries of the world there is the proceeds of a national patriotic» .
He explained that «National rents is to rely on the collection of fees for services, electricity, water and other charges, while the national rent is relying on investment and building human interest».

For its part, the institution concerned with the fight against poverty, said the report "for a certain number of oil-importing countries, constitutes low price of crude oil a chance to improve their financial positions faster pace. "

The bank has promised significant decline for the price of oil should specifically that allows these countries to reduce subsidies on energy sources that keep fuel prices at low levels, but it weighs public finance.

He said economists at the World Bank official Kaushik Basu, as quoted by a statement "on the oil-importing countries to shrink or eliminate subsidies on fuel prices and rebuild the margin of maneuver has a financial level."

According to the International Monetary Fund, the cost of supporting the energy sources in the world amounting to $ 1900 billion, or 2.5 percent of global gross domestic product.
The World Bank added that these additional resources for developing countries are very useful in economic conditions "uncomfortable."

In contrast, the institution that showed a drop in oil price will deliver weighed on the financial situation of the oil-exporting countries and economic activity.

2015-01-10

http://www.alsabaah.iq/ArticleShow.aspx?ID=84321

by **Cascadian** Sat Jan 10, 2015 10:42 pm

Put fees on everything and reduce subsidies on petroleum products in the country. In a country where a large portion of the populace doesn't even have reliable electricity you are going to try and eliminate the deficit on the backs of the poor. Good plan.

I really liked the line by the committee member stating that Iraq needed to diversify it's tax revenue. When your income relies on oil for over 99% of your taxable exports, I would like to know where you come up with the money.

The article is right though. Were the oil price to get to $30 bbl, that would be a catastrophe.

by **Kevind53** Sat Jan 10, 2015 11:28 pm

Actually, reducing subsidies was referring to oil importing countries not Iraq. As far as tariffs go, they will impact those with money more than the poor. The poor can not afford the items subject to the tariffs.

by **Cascadian** Sat Jan 10, 2015 11:34 pm

I tip my hat so you sir.. I didn't read the article closely enough. Good catch.

I remain skeptical though that they can tax their way into another 20 billion (and counting)

There's some noise around dinarland that someone has found 200 billion that Maliki hid around the world and is ripe for the taking. If that turns out to be true or if even 10% turns out to be true, there won't be that much of a crisis. If not.....

by **Kevind53** Sat Jan 10, 2015 11:40 pm

They are going after more than just M and his pilfered funds. But I agree that they will be able to make up their entire deficit. I think they know that and that is why they are still working on the budget.

An invitation to take economic measures to support budget

An invitation to take economic measures to support budget

Re: An invitation to take economic measures to support budget

Re: An invitation to take economic measures to support budget

Re: An invitation to take economic measures to support budget

Re: An invitation to take economic measures to support budget