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Iran pays $1.875B in medical subsidies

Business Materials 14 January 2015 12:38 (UTC +04:00)

Tehran, Iran, Jan. 14

By Milad Fashtami - Trend:

Iran paid 60 trillion rials (some $1.875 billion based on the exchange rate of US dollar at the free market) in medical subsidies in the current Iranian calendar year (which started on March 21, 2014).

Iran's Vice President for executive affairs Mohammad Shariatmadari said that the government needs to revise its subsidy payment methods, Iran's Mehr News Agency reported on Jan. 14.

"The country annually pays over 450 trillion rials (some $14.06 billion based on the exchange rate of US dollar at the free market) of cash subsidies to people," he said.

"It is while the country's construction budget is less than 250 trillion rials (some $7.81 billion based on the exchange rate of US dollar at the free market) per year," he added.

The official went on to note that economic growth and decreasing inflation are among the top priorities of the government.

Iran's First Vice President Ishaq Jahangiri said on Jan. 6 that the country's economy needs serious reforms.

"The country can't afford to postpone the reforms anymore," he said.

"If the current trend continues there will remain no share of budget for construction sector," the official added.

Iranian government submitted the $293-billion budget bill to Parliament on Dec.7. The budget of funding for running the government is $93.7 billion.

The proposed national budget is 4 percent more than current year. Next year's national budget bill is based on an oil price of $72 per barrel and a projected average exchange rate of 28,500 rials to the U.S. dollar for the fiscal year.

According to President Hassan Rouhani, the administration has taken necessary steps to decline negative effects of the oil price countdown.

The government expects to export 1.3 mbpd of crude oil and condensate at $72/barrel during next fiscal year, unchanged in volume, but decreased by 28 percent in value compared to the current budget law.

Rouhani said that about $24 billion of oil revenues is predicted for next fiscal year, adding share of oil revenues in next year's budget bill has decreased to 31.5 percent compared to 45 percent of oil revenues in current year's budget.

Edited by CN

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