Economic Commission expects the weak purchasing power in Iraq in 2012

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On: Sun 01/01/2012 6:24




BAGHDAD / follow-term economic
forecast for the economy and investment representative for the weak purchasing power in the country for 2012, citing not to increase the salaries of employees, retirees and increase the operating budget in the investment budget in 2012.


The Ministry of Finance had announced earlier that the budget 2012 will not see any increase on the salaries of employees or retirees to intercept the International Monetary Fund on this matter.
A member of the Committee of Economy and Investment Amer winner for "Twilight News" that "increase the operating budget caused by the prevention of increasing the salaries of staff and retirees, noting that the decline in the investment budget would stop providing jobs for the unemployed, which will lead to poor purchasing power of the citizen,
and added the winner: that in the absence of corporate income investing and investors to the country, will increase the unemployment rate within the community. "
He noted that the Fund IMF has warned the government of the high operating budget year after year, and threatened to raise support for the budget if it does not reduce the operating budget next year,
and continued winning the continuing political crisis and the deterioration of security conditions impede the entry of firms invested, and will have negative repercussions on the living conditions of the individual. " , calling on the blocks to speed in solving the problem of the current political and placing the interests of public interests, partisan and factional for the advancement of services and the elimination of unemployment in the country. "
The government has approved the budget for the year 2012, valued at $ 100 billion, an increase of 22% from the previous year, a deficit of about $ 13 billion, as revealed the Finance Committee representative from reaching the operating budget 70% of the budget in 2012.
For his part, said a member of the Finance Committee Haitham Jubouri that the budget next fiscal without the presence of any increase in the salaries of retired employees, except in the event of increased oil revenues " the first six months "of next year.
He Jubouri's Agency (news) that the financial budget for next year when it was modified by the government led to the reduction of issues related to balancing the operational state of all, including the increase for the salaries of retirees and employees.
He Jubouri that balance fitted with a paragraph in the article (23) that in the event of increased state revenues from oil revenues for the first half of next year, "any first six months of next year," will be added to the salaries of retired military personnel and civilians, as well as staff.
to that warned a member of the Economic Commission Nora Salem affected by Iraq, the global recession that the economy unilaterally, calling at the same time to develop appropriate solutions.
said Salem's Agency (news): It is likely that the world is experiencing an economic crisis new be stronger than the previous one, noting that Iraq will be affected by being dependent Baaradath annual oil only.
She added that the global economic crisis caused by low oil prices in world markets and this will affect the Iraqi economy as Rieia.
and called Salem on the government to develop appropriate solutions to avoid this crisis as a crisis of unexpected will strike America and Europe.
She pointed out: that the Central Bank has large reserves of up to (60) billion dollars and is undistributed strategic reserves of Iraq in the event of unforeseen circumstances or economic disaster in the country, can be used in this reserve.
The International Monetary Fund objected earlier to the general budget for the year (2012), After what he saw that the operating budget of more than (75%) and the investment budget (25%), and was its response to the government to modify it.
The House of Representatives had voted on the budget for 2011 of $ 81.9 billion dollar deficit of $ 13.3 billion is covered by the amounts retained from the previous year's budget, borrowing internally and externally, while the operating expenses $ 56.4 billion, while the capital expenditures $ 25.4 billion based on the rate of 76.5 dollars a barrel