Economic center: Cancel 2014 budget will deprive Iraq of the international credit rating
BAGHDAD / My head of the media today warned the economic center Dargham Muhammad Ali, from the cancellation of 2014 budget and will not be approved, adding that failure to approve the budget will reflect negatively on Iraq's economic reputation in front of the World Bank. Muhammad Ali said in a press statement:
The abolition of the 2014 budget sets a dangerous precedent legally, financially and administratively, and the void left by canceled reflected on the gravity and the strength and value of the federal budget law and thus on the budgets of the coming years and the final accounts.
He stressed that the impact of the abolition of the budget not limited negative dimensions in Iraq only, but extends to Iraq's international reputation and in front of the World Bank, where it will be difficult this procedure of giving Iraq rated international credit, in addition to weaken his position in the International Monetary Fund and in the resort over the proceedings on Iraq debts alleged.
He added, Muhammad Ali: This vacuum would be a conduit for future budgets to cancel or disable the pretext of political controversy, which would put Iraq on the path chaotic state in financial transactions in the pessimistic scenarios.
He continued: the House of Representatives must sit down with the executive branch and the Central Bank to discuss specific measures to control the potential for cancellation of 2014 budget and an elaborate mechanisms to prevent a repeat of this scenario, including a government shutdown similar to what is happening in the United States repercussions.
The Council of Ministers decided to set up a special ministerial committee shall re-prioritize the federal budget for the year 2014 in the light of the observations presented to cabinet members, including lead and to reduce the large deficit budget. LINK
Hello again Family,
From what we read here from this economic expert....the Iraqi's could find themselves locked in a battle till near the end of the year trying to get the 2014 budget pushed forward....from what he points to regarding the international credit rating issue that Iraq could face...this makes sense.
The big question is can anything truly be done to move the hockey puck in the right direction for them.....or do you just throw up your hands and write the year off, blaming the issues on the previous government and leadership....and use 2015 as the springboard to renew things worldwide.
IMO.....what they need is a healthy currency that can show the world they can compete on the international level....the 2014 budget really becomes a moot point by itself...without a working international rate they have nothing......such a rate also brings reality to the 2015 budget and what it can stand for as well.
I'm sure there will be continue to be talks and meetings around the 2014 budget....however, I don't think we will see the heavy hitters of the Budget Committee making much noise in this direction....just the lessor committee members stretching their fingers and cracking their own knuckles.
The key, again IMO.....remains with the HCL and the likelihood it can be put together and agreed upon by all of Iraq...and yes that would include the Kurds as well. We see the Kurd government giving some things to their Parliament today that look positive for them, both on a short term and long term basis....now if Erbil and Baghdad can push together an agreement worthy of stacking hands upon....sooooon!!!!! More later Randy
Randy. I thought I read soon after abidi took over the Parliament approved the 2014 budget and sent it to abidi for signature and that he agreed to approve it.
All we were waiting for was official printing in gazette. So what we hear now is some want to cancel it. Is this correct?
Hello agold....I understand what you are saying....but I am of the opinion this 2014 budget is still floating around not approved....they have been operating on a shoestring so to speak, based on 1/12th amounts each month for those "need to have" necessities to keep things afloat....bare-bones minimum kinds of things....
I put much if not all the blame for where they sit today on the previous Parliament and largely and squarely on the shoulders of Maliki....the new government and Parliament are attempting to clean things up, but they can only do so much in such a short period of time, thus the reason I believe they are more focused towards the 2015 budget, something they can do something with....
IMO....2014 will be remembered as a horrendous economic year for the Iraqis....unless of course they can pull that elusive rabbit out of their hat before the end of the year.....day by day we wait and watch.