Saleh: The 2012 budget consumer and the implementation of the required increase in the proportion of investment
23/01/2012
Anticipate the need for 12 years to double per capita income
BAGHDAD - Yasser incumbent
Expert warned of the danger of a cash back benefit from the full energy absorption of the annual investment budget allocations than planned in the indicators of the Iraqi Development Program for the years 2010-2014 and the target specified in the average growth in GDP up 9.4 percent.
He also warned that any deviation from achieving the growth rate in gross domestic product and set at 9.4 percent means that the country needs 12 years to double per capita income.
The deputy governor of Central Bank of Iraq d. The appearance of Mohammed Saleh, said that the growth rate was set by the Iraqi indicators development program for the years 2010-2014. This came in an interview with «morning» on the impact of monetary policy in achieving the goals of the federal budget.
He said the main obstacle to achieving the goals of the budget are the rates of implementation in the operational budget expenditures.
He added that the results achieved in the previous year's budget indicates that the capacity of the expenses of the operating budget has the flexibility and high capacity for absorption and utilization and financial implementation, while the stray capacity of the investment projects and landing on the rates of utilization of the real and financial rate of no more than 30 percent.
He means that the surplus in the deviation of the level of utilization of capacity investment in the 2011 budget will be converted to factor in added funding to expand the annual operating budget and nature of the consumer in the budget year 2012.
- What are the damages resulting from this result?
* Says in favor of this trend: the decline in the capacity of its annual budget consumer high flexibility and the investment budget is weak flexibility is holding monetary policy, the burden of deviation of the capacity investment restricted and absorb the surplus to the power consumption added to the expenses of high flexibility, which is equivalent conditionalities lack of resources, which leads to price inflation.
He .. Broader sense, the ability of foreign reserves for political interference with the central bank affected by the high exchange rate flexibility in operating expenses and higher growth rates and add the strength of consumer demand for high Aigoy the national economy to face a real offer to spare the economy the problems of inflation.
He said the central bank's target in the policy of intervention in the foreign exchange market is to fend off inflationary expectations and maintain the external value of the Iraqi dinar. - Where is the problem then?
* In this aspect, said Dr.. The appearance of Mohammed Saleh Here we must make clear to you the important thing is that the federal budget, adopted in 2012 marked the adoption of two contradictory trends, the first is the high Altfqat operational by 22 percent for the budget year 2011 and the second surpluses by 70 percent in the investment budget is the outcome of deviation of use from the allocations of the investment budget in 2011 itself.
He and so are feeling the effects of the adoption, here are the analytical level of the budget 2012, adopted a ceiling on the spending of 100 billion dollars, the share of investment expenditure of nearly $ 36 billion, or rather 36 percent of the total budget ceiling, while the share of the operating budget has accounted for the largest proportion, amounting to 64 percent .
In analyzing the ability of investment is desirable to maximize the growth rates in GDP, as adopted by the budget 2012 was built on the premise of the use of investment allocations by 100 percent instead of 30 percent in its current state, and when you return to the indicators of program development, as I said before, the goal of the average growth is up to 9.4 percent in the event of full utilization of the absorptive capacity of the annual investment budget allocations.
But when you look at the facts, the economic level of implementation of the investment budget in 2011 did not exceed 30 percent of the total allocations for low levels of implementation of the investment budget in 2010 and of 50 percent.
He said that when assuming the continuation of the same scenario, the financial capacity to benefit from the investment allocations of $ 36 billion budget Dolarfa Stakhtzel the year 2012 to $ 11 billion if it has limitations in the use of the capacity to invest the same and you can imagine the size of the effect.
- And how do you explain this result?
* Here I must mention goes deputy central bank governor said that the growth rates of Stnhrv Amehal from 9.4 percent to 5 percent a year, which means that the country needs 12 years to double per capita income as I said.
- Is this you expect the outcome of the budget?
* Yes, because in light of the continued decline in rates of implementation of the investment budget, it means $ 11 billion is the absorption actual allocations of investment in 2012 instead of $ 36 billion and this will generate real growth does not exceed 2.8 percent per year and you can imagine the difference from the goal of growth, 9.4 percent.
On this basis, Sinhrv growth in gross domestic product on the goals of the investment plan of 9.4 percent to become the 5 percent a year by Altnaqdan obtaining in the capacity of balancing the federal no flexibility operational costs and consumer implementation rate of 100 percent and the flexibility of low and restricted to the implementation of annual investment budget which does not exceed 30 percent.
23/01/2012
Anticipate the need for 12 years to double per capita income
BAGHDAD - Yasser incumbent
Expert warned of the danger of a cash back benefit from the full energy absorption of the annual investment budget allocations than planned in the indicators of the Iraqi Development Program for the years 2010-2014 and the target specified in the average growth in GDP up 9.4 percent.
He also warned that any deviation from achieving the growth rate in gross domestic product and set at 9.4 percent means that the country needs 12 years to double per capita income.
The deputy governor of Central Bank of Iraq d. The appearance of Mohammed Saleh, said that the growth rate was set by the Iraqi indicators development program for the years 2010-2014. This came in an interview with «morning» on the impact of monetary policy in achieving the goals of the federal budget.
He said the main obstacle to achieving the goals of the budget are the rates of implementation in the operational budget expenditures.
He added that the results achieved in the previous year's budget indicates that the capacity of the expenses of the operating budget has the flexibility and high capacity for absorption and utilization and financial implementation, while the stray capacity of the investment projects and landing on the rates of utilization of the real and financial rate of no more than 30 percent.
He means that the surplus in the deviation of the level of utilization of capacity investment in the 2011 budget will be converted to factor in added funding to expand the annual operating budget and nature of the consumer in the budget year 2012.
- What are the damages resulting from this result?
* Says in favor of this trend: the decline in the capacity of its annual budget consumer high flexibility and the investment budget is weak flexibility is holding monetary policy, the burden of deviation of the capacity investment restricted and absorb the surplus to the power consumption added to the expenses of high flexibility, which is equivalent conditionalities lack of resources, which leads to price inflation.
He .. Broader sense, the ability of foreign reserves for political interference with the central bank affected by the high exchange rate flexibility in operating expenses and higher growth rates and add the strength of consumer demand for high Aigoy the national economy to face a real offer to spare the economy the problems of inflation.
He said the central bank's target in the policy of intervention in the foreign exchange market is to fend off inflationary expectations and maintain the external value of the Iraqi dinar. - Where is the problem then?
* In this aspect, said Dr.. The appearance of Mohammed Saleh Here we must make clear to you the important thing is that the federal budget, adopted in 2012 marked the adoption of two contradictory trends, the first is the high Altfqat operational by 22 percent for the budget year 2011 and the second surpluses by 70 percent in the investment budget is the outcome of deviation of use from the allocations of the investment budget in 2011 itself.
He and so are feeling the effects of the adoption, here are the analytical level of the budget 2012, adopted a ceiling on the spending of 100 billion dollars, the share of investment expenditure of nearly $ 36 billion, or rather 36 percent of the total budget ceiling, while the share of the operating budget has accounted for the largest proportion, amounting to 64 percent .
In analyzing the ability of investment is desirable to maximize the growth rates in GDP, as adopted by the budget 2012 was built on the premise of the use of investment allocations by 100 percent instead of 30 percent in its current state, and when you return to the indicators of program development, as I said before, the goal of the average growth is up to 9.4 percent in the event of full utilization of the absorptive capacity of the annual investment budget allocations.
But when you look at the facts, the economic level of implementation of the investment budget in 2011 did not exceed 30 percent of the total allocations for low levels of implementation of the investment budget in 2010 and of 50 percent.
He said that when assuming the continuation of the same scenario, the financial capacity to benefit from the investment allocations of $ 36 billion budget Dolarfa Stakhtzel the year 2012 to $ 11 billion if it has limitations in the use of the capacity to invest the same and you can imagine the size of the effect.
- And how do you explain this result?
* Here I must mention goes deputy central bank governor said that the growth rates of Stnhrv Amehal from 9.4 percent to 5 percent a year, which means that the country needs 12 years to double per capita income as I said.
- Is this you expect the outcome of the budget?
* Yes, because in light of the continued decline in rates of implementation of the investment budget, it means $ 11 billion is the absorption actual allocations of investment in 2012 instead of $ 36 billion and this will generate real growth does not exceed 2.8 percent per year and you can imagine the difference from the goal of growth, 9.4 percent.
On this basis, Sinhrv growth in gross domestic product on the goals of the investment plan of 9.4 percent to become the 5 percent a year by Altnaqdan obtaining in the capacity of balancing the federal no flexibility operational costs and consumer implementation rate of 100 percent and the flexibility of low and restricted to the implementation of annual investment budget which does not exceed 30 percent.