Iraq: between the budget estimation and the actual balance sheet for the year of 2016

Iraq: between the budget estimation and the actual balance sheet for the year of 2016

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The Budget is the financial plan developed by the state as an  approach  to be  followed   in the next year, and  often  it was released in the beginning of each year and it is the main important  tool for managing  of fiscal policy for any state .
The budget aims to identify the best ways to exploit the resources of the state and filling  its expenditures without exposure to the debt and  international loans, and the budget  may be  for a  long – term  that means for several years, or short – term so as to be annual.
It is a way or a general plan , both current and investment  of   spending and revenue  , and  the budget ‘s ability to cope with economic problems and address it  was attributed  to the philosophy of the state to intervene or not, if the state adopts the principles of the capitalist system to address economic problems such as Iraq does not intervene in solving economic problems.

If  we review the difference between the budget and the balance for Iraq in
2016, we will find that Iraq ‘s revenues of the budget   expected  for 2016  amounted by 81,700,803,138 ( eighty  one Trillion  and seven hundred Billion , eight hundred and three million and one hundred and thirty – eight thousand dinars), and the earned incomes   from the export of oil had been calculated  at a  price rate  of   (45 ) dollars per barrel of oil,  calculates the dollar on the basis of (1116) Iraqi dinars, and the rate of export (3.6) million barrels per day , including production of the Kurdistan region and the production of the province of Kirkuk.
the anticipated  budget for 2016 indicated  that the total expenditure  will reach 105,895,722,619 ( one hundred and five trillion, eight hundred and ninety – five billion and seven hundred and twenty – two million, six hundred and nineteen thousand of  Iraqi dinars, of which

80,149,411,081 for current expenditures ,

25,746,311,538 for  investment  expenditures ,

and  69,773,400,000  for oil revenues

and    11,927,403,138  for non-oil revenues

and the total planned deficit  24, 194 919 481.
From the foregoing, the Iraqi budget structure suffers  from several problems, operational spending consumes most of the budget revenues, noting that the  percentage of  operational spending  to total revenue was reaching   to 98.1%.

The member of  parliamentary finance committee  Majda al – Tamimi revealed  about  the total revenue and expenditure for the year 2016 up to the end of the last November , indicating that the amount of the deficit until this period amounted to more than 34 trillion dinars.
Tamimi  added  in a statement that ” the total expenditures for 2016 totaled up to November 60 Trillion  month and 420 billion and 643 million dinars.

She added that the current expenditures  reached to amount 47 trillion and 568 billion and 568 million dinar while the investment expenditures reached 12 trillion  and 852 billion  and 75 million dinar in return  for oil revenues amounted 29 trillion  and 741 billion and 992 million dinar  that part of it goes to the foreign oil companies( rounds of licenses  )  by amount 8 trillion and 679 billion and 915 million dinar that the net oil revenues  to reach by 21 trillion  and 92 billion and 78 million dinar  whilethe non-oil revennued amounted 4 trillion and 848 billion and938 million dinar  that the total of oil revenues and non-oil revenues  to reach 25 trillion and 911 billion and 16 million dinar .
Al- Tamimi called to “conduct a detailed review of total expenditures and in a professional manner away from the political, partisan and sectarian influences, and to engage in spending details for some of the paragraphs to be reduced or deleted, and reconsider the travel and deputations and expenses of fuel  , and develop appropriate mechanism for  the  auction of currency and to  accountable  the  corrupt  who  control of  the border crossings , and   take hold on  the bulk of its revenue compared to   a  proportion  not be  remembered   going to the state treasury.
The following table shows the difference between the planned balance and actual budget for the year 2016
values / Iraqi dinar

This reflects the fragility of the Iraqi economy because of wrong economic policies and the lack of clear strategic vision , which played a major role in the squandering of massive  oil revenues  after 2003 and  international and regional powers  devoted the unilateral   economy  and  rentier  economy of  the Iraqi state ,   that  agendas of internal currents and  forces were behind it aimed at keeping Iraq weak country  racked by various conflicts , supported by the sectarian and  quota system and the conflict of interests and financial and administrative corruption, which led to the collapse of the productive base of the Iraqi state  including  public and private industrial , mixed and cooperative sector  and agricultural sector, as well as artisan sector.
As a result of corrupt  economic conditions  , we  get to the important   result of which is that the budget  has not been  and will not be able to address or alleviate any of the accumulated  crises  from previous budgets , such as the crises (housing, unemployment, illiteracy, poverty rate, municipal services, school buildings , dropout and evasion of education   , health  services , and cadres).

Shatha Khalil

Translated by : Mudhaffar  Kusairi

Unit of  Economic Studies

http: //www.s Http:// Otaliraq.com7
Dr. / Magda Tamimi site


Rawabet Center for  Research and Strategic Studies