...

Iran to reduce number of ministries

Iran Materials 25 December 2010 15:05 (UTC +04:00)

Azerbaijan, Baku, Dec.25 /Trend, A.Yusifzade/

During a five-year period (2010-2015), the number of ministries in Iran will be reduced from 21 to 17, Iranian parliamentarian Alireza Manadi was quoted by Fars as saying.

Currently there are five million public employees in Iran, but according to the state standards must be 700,000 to 800,000.

Therefore, achieving the necessary standards required to reduce this figure.

Last year, state employee's wages amounted to $79 billion, while Iran's oil revenues were $55 billion.

According to him, Iran spends 70 percent of its budget on salaries.

Earlier, Iran's parliament approved President Mahmoud Ahmadinejad's 2010/11 budget, but some lawmakers attacked the plan, saying planned cuts in subsidies could spark runaway inflation Reuters reported.

A senior official has said the government projects revenues of 596 trillion rials (about $59.6 billion) in fiscal 2010/11, which will result in a $6 billion deficit.

Analysts estimate the cuts could send inflation spiraling back to 30 percent or more and lead to a repeat of rioting seen in 2007.

Iranian media reported earlier paliamentary committee had questioned the government's calculation of $40 billion savings through subsidy cuts, saying $20 billion was more realistic.

Tags:
Latest

Latest