MP: Iran administration faces $10 billion budget deficit

Iran Materials 17 December 2011 15:43 (UTC +04:00)

Azerbaijan, Baku, Dec. 17 / Trend F.Milad/

The Iranian government faces 100 trillion rials (some $10 billion) budge deficit due to the unlawful expenditures to implement the Subsidy Reform Plan, a member of the parliament Ja'far Qaderi stated.

Ja'far Qaderi added that the government has so far earned 170 trillion rials by implementing the plan, but paid around 270 trillion rials to people and industries as cash subsidies, Mehr news agency reported.

Meanwhile, deputy economy minister said earlier this month that there is no shortage related to subsidy payment in the budget. So, cash handouts will be continued by the end of the year.

Mohammad-Reza Farzin added that the government has issued a report on the first nine months of paying cash subsidies, Fars news agency reported.

If the government does not change prices based on the subsidy reform plan, it will face around $54 billion budget deficit, he said.

The subsidy reform plan, launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years.