Oil price set to $100 per barrel in Iran’s next year budget bill

Oil&Gas Materials 1 December 2013 13:23 (UTC +04:00)

Baku, Azerbaijan, Dec.1

By Fatih Karimov - Trend:

Oil price has been set to $100per barrel in Iran's next year budget bill, IRNA quoted Iranian MP Ja'far Qaderi as saying on December 1.

The next Iranian calendar year begins on March 21, 2014.

U.S. dollar exchange rate has also been set to 26,000 rial, and general budget has been set to 1900 trillion rials (about $76.3 billion based on the U.S. official exchange rate of 24,900 rials), he added.

The government revenues forecasted to reach 800 trillion rials (about $32.1 billion), he said, adding that customs and tax income are projected to hit 640 trillion rials (about $25.7 billion).

On November 30, the Tasnim News Agency quoted Iranian presidential deputy for planning Mohammad-Baqer Nobakht as saying that the Iranian administration will submit the budget bill for the next Iranian calendar year, which begins on March 21, 2014, to the parliament in the next two days.

The U.S. dollar exchange rate will be fixed in the budget bill. Moreover, the budget bill has envisaged that the second phase of the subsidy reform plan will be implemented next year, he added.

On October 16, the Iranian parliament (Majlis) approved general outlines of the current year's budget bill amendment, IRNA reported.

The Majlis approved the current year's 7.270 quadrillion rails (about $295 billion based on the official USD rate, a dollar equals 24,900 rials) budget bill.

According to the experts, some income figures including predicted tax, customs and oil export revenues in the budget will not be realized.

In mid-August, ISNA quoted First Vice President Eshaq Jahangiri as saying that Iran's current year budget will be revised because one third of government incomes recognised in the budget will not be realised.

In July, economic advisor to President, Mohammad Bagher Nobakht, said that the current year's budget is too optimistic and the next administration should revise it.

Conservative MP Ahmad Tavakoli had said that the current year's budget is not realistic and may result in even higher inflation.

Predicted incomes of the Iran's current year's budget have been realised by 52.8 per cent during the last Iranian calendar month (July 23- August 22), Iranian president Hassan Rouhani said, IRNA news agency reported.

Rouhani recalled that the country is facing a massive budget deficit, adding that the current year's budget, proposed by the previous administration is unrealistic.