Oil revenues make less than 25% of Iran’s budget

Business Materials 18 January 2016 18:52 (UTC +04:00)

Baku, Azerbaijan, Jan. 18

By Khalid Kazimov - Trend:

Oil revenues will make up less than 25 percent of the proposed budget for next Iranian year (starting March. 21), in a bid to reduce the government's reliance on oil, Iran's First Vice-President Eshaq Jahangiri said.

According to him the Iranian management and planning organization has planned the draft budget considering the removal of sanctions and an oil export of two million barrels per day, IRNA News Agency reported Jan. 18.

Saying that the revenues from oil should be spent for development projects, Eshaq Jahangiri added that the government will make efforts to minimize its reliance on oil revenues over the coming years.

President Hassan Rouhani proposed the country's $ 317.6 billion to parliament on January. 16.

The proposed budget predicts an exchange rate of $1 U.S. dollar to 29,970 Iranian rials. The rial is 30,181 to $1 according to the official rate announced by the country's Central Bank on Jan. 18. It also put oil prices at $40 per barrel in the draft budget.

About 680 trillion rials of oil revenues are forecasted for next fiscal year, 21.4 percent more compared to the current fiscal year.

The administration has allocated 590 trillion rials for the development projects in the next year's budget.

In a joint statement on Jan. 16, the EU's High Representative Federica Mogherini and Iran's Foreign Minister Mohammad Javad Zarif announced the implementation of the JCPOA and the removal of economic sanctions on Iran.

According to the statement, EU has confirmed that legal framework, providing for lifting of its nuclear-related economic and financial sanctions, is effective.