Iranian president submits draft budget to parliament

Iranian President Mahmoud Ahmadinejad presented to the Parliament of the Islamic Republic the preliminary draft of a new annual budget (the new year in Iran starts on March 21), Mehr news agency reported.

The new budget totals $539 billion, which is 46 percent more than last year. The government's policy to reduce subsidies contributed to the increase in budget revenues.

The subsidy cuts plan -- encompassing key consumer goods such as gasoline, natural gas, and food -- is said to be one of the most important undertakings in Iran's recent economic history.

Every family member receives USD $80 in cash subsidies for a two-month period.

Officials say energy subsidies have cost the Iranian government around 100 billion dollars a year.