Baku, Azerbaijan, Feb. 23
By Khalid Kazimov - Trend:
Iranian government's spokesman Mohammad Baqer Nobakht has said that in the current Iranian fiscal year (which started Mar. 21), the subsidies reform plan suffered a 100 trillion rial (2760 rials making USD1) deficit.
Nobakht, who is also President of the Iranian Planning and Budget Organization, made the statement addressing the parliament which is studying the next year's national budget bill.
In answer to lawmakers' question why no money from the subsidies reform saving was given to the production section, he said that there has been no money left from the plan, Fars news agency reported Feb. 24.
"Since the subsidies reform plan was executed, 1,270 trillion rials was made from increasing energy carries' prices. According to the law, half of this, that is 635 trillion rials must have been paid to households and the rest be divided between production and governmental companies," he said.
The official explained that 470 trillion rials from the Treasury, 57 trillion rials loan from the Central Bank, as well as 56 trillion rials facilities from the National Development Fund were added to the 1,270 trillion rials energy carries revenue to be paid to people as cash subsidies.
Last April Iran's president, Hassan Rouhani announced that the government spends about $1.4 billion (based on then official rate of 25,500 rials per each USD) per month on the cash subsidies for citizens.
The cash subsidies impose about $392 million worth of deficit in the budget per month for administration, he noted.
The administration of former president Mahmoud Ahmadinejad implemented the first stage of the subsidy reform plan toward the end of 2010.
The subsidy reform plan is aimed at easing pressure on state finances by cutting tens of billions of dollars from government subsidies on food and fuel. The government pays cash to citizens as compensation for increased prices by cutting subsides.
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