Iran to face $15 b deficit to pay citizens

Business Materials 27 September 2011 17:22

Azerbaijan, Baku, Sept. 27/Trend A. Qurbanova/

Iran 's parliament reported Ahmadinejad's government faces a $15.6 billion deficit to pay citizens, Iranian daily Shahrgh reported.

The Iranian government pays each citizen $45 a month as a compensation for a part of commodities and energy subsides, which were cut in December 2010.

The special parliamentary commission for economic reform reported the government faces nearly $16 billion in deficit from its budget in current solar year (started on March20,2011) to pay cash to citizens.

The commission believes the government has already used oil revenues illegally to pay for removed subsidies.

Head of Supreme Audit Court Abdolreza Rahmani Fazli said earlier that the Iranian government has transferred $15 billion into citizens' bank account in order to keep up "removing subsidies" plan.

"The government borrowed $5 billion from Central Bank of Iran, while $5 billion was allotted out of public budget and $3 billion from oil revenues to pay off removing subsidies," Rahmani Fazli added.

The Iranian government is expected to save $54 billion by removing subsides this solar year. Eighty percent of this sum will be transferred to citizens' bank accounts to compensate for subsidy removals, and twenty percent should be assigned to industry and construction sectors.