Iraqi Government Decided to use Iraqi Reserves to Cover Budget Deficit

Iraqi Dinar 123 News:– On Thursday, the Iraqi Parliamentary Finance Committee issued a statement that Iraqi government has decided to withdraw a considerable amount from Iraqi reserves in order to manage the issue of Iraqi budget deficit. A member of Iraqi Finance Committee Ahmed Sarhan issued a press statement that it is most important task for Iraqi government to invest in the Iraqi agriculture and industry sectors to minimize dependency on the revenues of Iraqi oil export in the federal budget, due to continuous decline in global oil Prices. He also pointed out that there are a number of elements that caused weakening in the agriculture and industry sectors. The Iraqi government should declare those factors and take specific actions against those elements.

Ahmed Sarhan further added that current solution to manage the crisis is considered different external borrowing sources. He explained that Iraq has a large number of reserves including foreign currency reserves and gold reserves. The government of Iraq has made a plan to pull out specific amount of Iraqi reserves in order to cover federal budget deficit problem and to manage other crisis. The Iraqi House of Representatives voted on the federal budget 2016 last month and total expenditures are amounted at more than 80 trillion Iraqi dinars with an increase of 75 percent in the total expenditures that reached at 105 trillion Iraqi dinars and the investment expenses are calculated at more than 25 trillion Iraqi dinars with an increase of 23 percent. The Iraqi Finance Minister Hoshyar Zebari issued a statement on last Monday and indicated that Iraqi government would be unable to pay salaries to its employees after the month of April 2016.

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