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Expert: $20 billion deficit predicted in Iranian annual budget

Business Materials 29 August 2013 15:56 (UTC +04:00)

Azerbaijan, Baku Aug. 29 / Trend, N. Umid, S. Isayev

Iran's current year's budget would face at least $20-24 billion (500-600 trillion rials based on official rate of 24,807 rials per each USD) of deficit, former member of Iranian parliament, Ali Mazroui told Trend.

Mazroui wo was a member of Budget Commission of parliament from 2000 to 2004, believes that current budget sould be reviewed by parliament again.

Performance of current year's budget will be discussed in Iran Parliament's Energy Commission next week, the Islamic Consultative Assembly news agency (ICANA) reported.

Ex-President Mahmoud Ahmadinejad's government submitted current budget bill to parliament with a couple of month delay and the bill passed after some changes on figures in May.

The Iranian parliament approved the current year's 7.270 quadrillion rials budget bill.

"Predicted incomes in the budget would not be realized, Mazroui said, adding that president Hassan Rouhani wants the budget be reviewed to prevent facing the government with deficit in budget.

According to the expert, some income figures including predicted tax, customs and oil export revenues in the budget would not be realized.

In Iran's current year budget oil revenues have been forecasted based on 1.3 mbpd oil exports, however according to International Energy Agency statistics, Iran have exported one million barrels of crude oil per day averagely during Jan-June.

Reuters calculation also indicates this figure at 960,000 bpd for first six months of 2013.

Tax revenues also have been put at 530 trillion rials, including 88.200 trillion rials of customs revenues.

Iran's imports-exports have been decreased by 26.36 percent and 7.99 percent respectively during March 20-August 20 compared to the same period last year.

Last week, ISNA quoted first vice president Eshaq Jahangiri as saying that Iran's current year budget will be revised because one third of government incomes recognized in budget would not be realized.

The budget has envisaged 2100 trillion rials in government incomes, but it should be changed to 1400 trillion rials, he noted.

In July, economic advisor to the president, Mohammad Bagher Nobakht, said that the current year's budget is too optimistic so the next administration should revise it.

"As far as I know, the government managed to secure only 44 percent of the country's assigned budget in the first quarter of the current year," he said.

Previously some MPs had requested for an amendment to the budget bill.

Conservative MP Ahmad Tavakoli had said that the current year's budget is not realistic and may result in even higher inflation.

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