Iran’s Social Security Organization facing $2 bln budget deficit

Business Materials 27 December 2013 11:08 (UTC +04:00)

Baku, Azerbaijan, Dec.27

By Fatih Karimov - Trend: Iran's Social Security Organization is facing a budget deficit of 50 trillion rials (about $2 billion), IRNA quoted the organization's managing director Taqi Nourbakhsh as saying on Dec.26.

He has also said that revenues and expenses are imbalanced. According to the law, executive bylaws in the organization should be revised every three years, but this important task has not been done in the past 38 years, he added.

He also said that the situation has worsened during the past eight years - the incumbency of former president Mahmoud Ahmadinejad.

The ratio of assets to debts in the organization was 11 in the Iranian year 1380 (March 2001-March 2002), but the figure is currently about 2, he explained.

Some 38 million Iranian people are under the coverage of the Social Security Organization.

Social Security Organization is the largest economic-insurance organization in Iran. It offers obliged insurance to both wage-earners and salaried employees, pays pensions to the retired, and pays unemployment allowances.

On November 30, the website of the Iranian parliament published a report, in which it said some officials of the country's Social Security Organization have received high bonuses despite the organization's budget deficit.

The report said sixteen officials of the organization have received at least 380 million rials (about $15,200) in bonuses during the past eighteen months.

Iraj Abdi, a member of the organization's investigation committee, said that some persons received 1.2 billion rials (about $48,000) in bonuses, while their monthly salaries were one tenth of the figure.