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Iran to face serious budget deficit in 2009-2010: MP

Business Materials 9 February 2009 16:41 (UTC +04:00)

Iran, Tehran, Feb. 9 / Trend , A.Namdari/

Iran will face a serious budget deficit in 2009-2010, Iranian Parliamentary Commission on Budget and Economic Policy member Abbasali Noura said on Feb. 9.

"Various parliamentary committees are studying the draft budget. The process will be completed in early March and the document will be submitted to the parliament for consideration," he said.

Budget projections will be balanced, Noura said. He refused to divulge details.

The Iranian Presidential Administration submitted a draft budget to the parliament two weeks ago.

The Iranian Parliament Research Center announced on Feb. 8 that the 2009-2010 budget has a deficit of 44 trillion toman (nearly $42 billion). The government has not yet commented on the issue.

Under the new draft budget, finances will not be transferred to the Iranian Reserve Monetary Fund in 2009-2010 due to low oil prices.

"The draft budget proposed by the government encouraged taking $12 billion from the Reserve Monetary Fund," member of parliament Aham Tavakkuli said on Feb. 8.

Iranian President Mahmoud Ahmadinejad said on Jan. 27 that the 2009-2010 draft budget complies with the current global economic situation and is real and complete.

Oil revenues account for 80 percent of Iran's total government revenues.

Iranian officials have expressed concern about the decline in oil prices on world markets on numerous occasions.

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