TEHRAN, Iran, May 20
Trend:
It is possible to pay salaries and subsidies as well as complete semi-finished development projects despite budget deficit, the head of Iran Planning and Budget Organization (PBO) said.
"The sanctions and the global recession caused by coronavirus outbreak have severely affected the revenue sources of the budget,” Mohammad Baqer Nobakht wrote in a post published on his Instagram page, Trend reports.
He added that appropriate planning has been done and the focus has been on reducing consumption and relying on saving.
Oil revenue makes up about 10 percent of Iran’s budget. The budget for this fiscal year was set based on selling a million barrels of oil a day at about $50 per barrel.
The combination of sanctions, shrinking demand for oil due to coronavirus outbreak and falling prices has upended Iran’s budget planning.