Iraq Seeks Recover 2011 Deficit
|January 31, 2011||Filled under All Dinar Trade Articles|
Baghdad, (AKnews) – The Central Bank of Iraq (CBI) adviser, announced on Sunday that the Iraqi government can fill the deficit in 2011 budget by borrowing from their deposits in government banks.
The Iraqi government has approved the draft of the federal budget law for the fiscal year 2011, so that the budget amounts to 79.6 billion dollars, by calculating per barrel of oil by $ 73, and the rate of export of 2.25 million barrels per day.
Motheher Mohammed Saleh told AKnews that “the Iraqi Central Bank granted the right to the Iraqi government to borrow $ 10 trillion Iraqi Dinars from its available deposits in government banks through the Finance Ministry.”
“The value of deposits of the government departments and public sector banks is $ 32 trillion dollars, but are scattered among the banks because of the difficulty of coordination.”
Prime Minister, Nuri al-Maliki has warned of a fiscal deficit that can delay the completion of projects for 2011 in case the central bank did not fill the deficit in the general budget of the country by its oil reserves.
CBI believes that lending to the government from its reserves will baffle the cash plan in the next phase.
It is hoped to read the second reading of the budget in the Iraqi parliament session next Tuesday.
It is expected that the budget deficit will reach about $ 12 billion, in what is expected that the rate of spending will be about 54.7 billion dollars.
Iraq which is a member of the Petroleum Exporting Organization relies on the oil revenues to finance about 95 percent of its annual budget.
A number of economists believe that delaying the budget more than the current time will disrupt the process of construction and will hampers the government and ministries movement. “
The preparation of financial budgets and its approval in the country witnesses’ delays by the government and the parliament because of the large number of objections and criticisms on some of its paragraphs, most prominent are aspects of exchange and the financial allocations for some government institutions and the three presidencies.
The advisers’ board in the Iraqi prime minister presidency announced that the government decided to raise the investment proportion in the current year budget to 30% at the expense of the operational aspect in order to support investment projects.
The Central Bank of Iraq confirmed that the 2011 budget will raise economic growth to 10% of what it was, noting it was built according to the country’s economic policy.
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