Iran expects budget deficit - Plan and Budget Organization

Business Materials 31 August 2021 14:36 (UTC +04:00)
Iran expects budget deficit - Plan and Budget Organization

TEHRAN, Iran, Aug. 31


Iran would have a budget deficit in the current Iranian year (started March 21, 2021) since the budget plan was not well-drafted, said the head of Plan and Budget Organization, Trend reports citing Mehr News Agency.

The budget plan's predicted revenues from oil export in the current year have not been achieved and only 15 percent of the predicted sum was obtained during the first five months of the year, Masoud Mirkazemi indicated.

The Iranian official noted the Gini coefficient has increased in the past 8 to 10 years while the gap between rich and poor classes has deepened and in favor of the wealthy class.

"Average economic growth in past eight years was from 0 to 0.08 percent and inflation rate was a double-figure," he said.

"About 50 percent of budget costs in the first five months of the current year were provided from borrowing and sale of bonds and government properties," Mirkazemi noted referring to increased expenses in the year that were contradictory with a budget plan.

"The country's consumption expenses during the first five months of this year were $66 billion of which more than $52 billion of this figure was provided from reliable resources," he explained indicating the costs were higher than budget prediction.

The official emphasized the necessity to reconsider financial resources and increase revenues to improve the budget's sustainability.

Iran's budget plan for the current year has previously faced objections in the parliament over predicted oil export and tax revenue as well before finally being approved.