Minister of Finance: activation of the private sector and in

[Stillw8n]

Minister of Finance: activation of the private sector and increase oil production will guarantee to fill budget deficit

Iraq prepares for the application of a series of measures that reduce risk and global economic volatility that can affect the general budget of the country, while it agreed that the Finance Committee in the House of Representatives on the importance of calculating the general budget of the country by 80 dollars per barrel of oil instead of $ 85 in anticipation any collapse in world oil prices, the Minister of Finance on the plan said it would contribute to the reduction of budget deficit, amounting, according to preliminary figures 16.6 trillion dinars for a deficit of 5 trillion dinars, indicating that the plan includes an increase in oil production and the involvement of the private sector in economic activities all as well as exploitation spending is achieved in bridging the deficit ..
Economists have stressed the words of former cast by the (morning) on the importance of reducing dependence on oil imports in the financing of public budgets of the country, noting that the oil resource depleted, which called on them to activate the rest of the productive sectors in Iraq Kalqtain industrial and agricultural production.

comes that moves at a time in which he criticized the International Monetary Fund targets the general budget, which tend to fill operational spending at the expense of investment spending, which faces many of the criticisms by specialists in the economic Iraqi who assert the need for tend the general budget shift investment spending in order to rebuild and speed up the processes of growth and the eradication of poverty ..

The Finance Minister Rafie al-Issawi said Iraq is seeking to reduce the budget deficit by two-thirds in three years by increasing oil production and promote the participation of the private sector .. told Issawi Speaking Reuters in an interview on the sidelines of the World Economic Forum at the Dead Sea that is expected to decrease the deficit five trillion dinars from the expected level for this year at 16.6 trillion dinars $ 14.2 billion.

Issawi said, “There will also be spending is verified will eventually bridge the budget deficit and therefore deficits not a concern. “He did not disclose the size of the projected deficit as a percentage of GDP, but official figures set the 2011 budget at 82.6 billion dollars and expects a deficit of about 17 percent of revenue.

Issawi said he hoped economic growth accelerated slightly to about five percent this year and nine percent in the next three years as Iraq begins to end the legacy of the adoption of economic activity on the state and violates the slow years in the economies of the region.

He added that spending will increase by eight trillion dinars in 2012 as a result of extra spending to raise wages and train security forces and military aircraft and rising import bill commodities.

But he added that the increased spending would be offset by expected growth in revenues to about 95 trillion dinars next year with the increase in oil production, which will reduce the privatization pressure on public finances of the government.

Iraq currently produces about 2.7 million barrels per day and seeks to enhance the production capacity to 12 million barrels per day by 2017 .

based on the 2011 budget to an average oil price of $ 85, before the House to approve the price less five dollars for this recently, and exports volume of 2.2 million barrels per day of crude, while expecting the budget of 2012 to export 2.6 million barrels per day in the same average price expected for this year.

The deficit Budget challenge to Iraq’s ability to rebuild. The country has huge projects to build hundreds of thousands of new homes and promote the production of electricity that the country suffers from interrupted frequently as a result of war and sanctions over the past twenty years. Issawi said “the main challenge today is the infrastructure destroyed and in need of more capital spending and this means opening the door for the sector private sectors. “He added that the government intends to accelerate the pace of privatization of industries belonging to the state and it now offers the ground free of charge to investors to encourage investment. and said:” We are convinced that part of the solution in the hands of the private sector. “

He said the main challenge facing the Iraqi economy still is to reduce dependence on oil to stimulate growth.

He added that “diversification is limited in light of the economy’s dependence on oil, that restricts the growth and investment.”

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