Macro figures of Iran’s new budget bill

New details published about Iran's upcoming solar year budget bill which was submitted to Parliament to be ratified last week, indicate elimination of some concrete figures in the bill including the price of oil and the USD rate.

Iran's Finance and Economic Affairs Minister Shamseddin Hosseini said on Tuesday that the USD rate is set on the open market and the oil price on the international one. So, setting certain figures about these in budget bill is meaningless. He said that overall numbers are written in, but not set in concrete.

The Iranian government solar year will start on March 20.

According to the new budget bill, an income of $31 billion crude oil exports is targeted, indicating a 39.3 per cent decrease (based on USD) compared to the current solar year. With reference to this fact that the international oil price has not been predicted to change, then the amount of crude oil and condensate exports for next solar year is aimed to be about 40 per cent less than current year.

On the other hand, the oil revenues figure was changed to only minus 1.5 per cent compared to current year based on Iran national currency. Iran aims to export 658,700 billion rials of oil and condensate next year.

Comparing oil revenues based on the USD and rial indicates that the Iranian government recognised the USD rate at 21, 300 rials, which is 73.7 per cent more than the current year's official USD rate.

According to the current solar year's budget, the USD rate was set at 12, 260 rials. However the USD rate in open market is above 31, 500 rials.

Iran's national currency has dropped in value significantly since last year. An American dollar was sold at 21, 000 rials on Iran's open market in January 2011, while this figure had risen to 39, 000 rials up till last week and then dropped to 31, 500 rials.

In the next solar year's budget bill, the oil price is put at $95 per barrel, indicating a 11.7 per cent increase compared to the current year's figure.

Among the figures in the budget bill, taxes revenues and allocation of financial resources to pay cash money as compensation for cutting subsidies are noticeable.

Taxes revenues is set to increase to 530,220 billion rials, indicating a 16 per cent growth compared to the current year and it is aimed at allocating 1,200,000 billion rials for cash to be paid to people. This figure shows an 81.8 per cent increase compared to the current year.

The Iranian government has cut subsides gradually since December 2010 and pays 450, 000 rials cash to every citizen as compensation.

Resuming all figures, next year budget's total figure is set at 7,305,260 billion rials indicating a 28.9 per cent expansion compared to the current year.


Dalga Khatinoglu   /Trend/