MP: Iran to use electricity export revenues to pay subsidies

Oil&Gas Materials 26 July 2011 18:11 (UTC +04:00)

Iran Azerbaijan, Baku, July 26 / Trend /

The government transfers the electricity export incomes to the citizen 's bank account as a compensation of removing subsidies, ILNA quoted the Head of Parliament's Energy Commission Hamid Reza Katouzian as saying.

According to Iran's general budget for current solar year (which started on March 21, 2011), the government will save $54 billion during this solar year as a result of removing subsides. A half of this sum ($27 billion) would be transferred to the citizens' bank accounts (44$ per each citizen), 30 percent to the industry sector and 20 percent to the government's current expenditures.

Meanwhile, the government said that it transferred $21 billion only during the first half of the year to the citizens' bank account.

President Ahmadinejad had to borrow $5 billion from the Iranian Central Bank to transfer to the citizens' bank account.

Earlier, the head of the Iranian parliamentary energy commission Mohammad Reza Katuzian said that Ahmadinejad's government spends construction expenses on absolutely different fields, particularly transferring money to the people's cash bank account after the subsides are removed.

"Several construction projects, including the South Pars gas field development project, were suspended because of assigning the construction expenses to other spheres," Katuzian said on July 8 in an interview with Khabar Online.

Katuzian said in an interview with Khabar Online that a part of electricity export income has also been illegally remitted to the people's bank accounts.

The Iranian parliament charges Ahmadinejad of violating the budget plan by spending the funds on illegal spheres. MPs accused Ahmadinejad of importing a huge amount of gasoline without the parliament's approval.

Katuzian denounced a lack of transparency in Ahmadinejad's government.

"The energy commission is investigating the case of the $11.2 billion oil income, which was not remitted to the Sovereign Wealth Fund. There are also suspicions about the use of $7.7 billion on oil projects through the National Oil Company," he added.