Planning for 2016 Budget is in Final Phase

Iraqi Dinar 123 News:– As the last quarter of 2015 is being started, the Iraqi Ministry of Finance is preparing the groundwork for the next year budget 2016. This budget will be prepared by analyzing all the positive and negative factors in the current year’s budget in order to minimize the deficit for the next year’s budget 2016. One thing is sure that coming budget would also face the deficit but Ministry of Finance would focus to minimize the 2016 budget deficit. The global oil prices are still facing a continuous decline, so new budget should be prepared according to the current situation and expected oil prices conditions.

Planners that are preparing the next year’s budget should consider the important elements to reduce the budget deficit. First of all they should find some better ways to cut costs and the other thing is to increase the state revenues. Iraq is much dependant on its revenues coming from the oil exports. So, the Iraqi government should concentrate on other non-oil sectors in order to increase its state revenues. The other most important factor is the large amount of expenses that Iraqi government is spending to improve its internal security conditions and a huge amount of money expending against war on terrorism and to eliminate the Daash, because there a large number of oil wells that are under the control of Daash and other terrorist groups. Iraq is producing more than 3 million barrels per day and looking to deal with international oil companies to pay their dues in the form of oil rather than paying cash in order to reduce the investment cost.

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