Iran’s next year budget bill sees economic growth at 3%, inflation at 21%

Business Materials 29 January 2014 11:40 (UTC +04:00)

Baku, Azerbaijan, Jan.29

By Fatih Karimov - Trend: Iran's national budget bill for the next Iranian calendar year 1393, which starts on March 21, 2014, has envisaged economic growth at 3 percent and an inflation rate of 21 percent, the Fars News Agency quoted Iranian MP Gholamreza Kateb as saying on Jan. 29.

He also said that tax incomes have been predicted to decrease from 900 trillion rials (about $36.2 billion) in the current year to 670 trillion rials (about $27 billion) in the next year.

The country is forecasted to export one million barrels of oil per day and 297 million barrels of gas condensates in the next year.

The liquidity growth is forecasted to rise to 20 percent from the current 19 percent, he noted.

On December 8, 2013, Iranian President Hassan Rouhani presented the administration's draft of the national budget bill for Iranian calendar year 1393, which starts on March 21, 2014, to the parliament.

The proposed national budget amounts to about 7.83 quadrillion rials (about $315 billion based on the official exchange rate of 24,850 rials), an 8.4 percent rise year on year.

Next year's national budget is based on an oil price of $100 per barrel and a projected average exchange rate of 26,000 rials to the U.S. dollar for the fiscal year.

The funding for running the government increased by 240 trillion rials (about $9.6 billion) and was set at 1.95 quadrillion rials (about $78.4 billion).

The draft national budget estimates crude oil production and exports at about 3.3 million barrels per day and 1.5 million barrels per day, respectively.

Rouhani has said that the budget bill contains useful data on ways of providing public services and constructing infrastructures.

"The administration's main concerns are to create jobs, curb runaway inflation and boost economic growth," he added.