Iran plans to reduce oil share in state budget to 20%
Baku, Azerbaijan, Nov. 23
By Emil Ilgar– Trend:
Iran plans to reduce the share of oil revenues in annual budget to 20 percent by 2021, Mohammad Kirdbache, the advisor of Management and Planning Organization of Iran said in an article, published Nov .23 by Shana news agency.
According to him, the share of oil revenues in the Second National Development Plan (1995-2000) was 55.4 p0ercent, which decreased to 50.7 percent and 31.4 percent in third and fourth National Development Plans (2000-2010), but again rose to 43.2 percent in the Fifth Plan (ended in the current year).
Kirdbache said that the share of oil in the budget is projected to decrease and reach 20 percent by the end of the sixth National Development Plan.
He added that, in practice, the share of oil revenues in budget has decreased to 33.2 percent during last fiscal year due to low oil price.
Iran’s fiscal year started on March 21.
Iran is currently producing 3.7 million barrels of oil (mb/d), of which 1.7 mb/d is refined and the rest is exported. Iran also exports about 400,000 b/d of gas oil and fuel oil.
The oil price in mid-2014 was about $115, but plunged to below $30 in early 2016 and currently is around $45/barrel.
Kirdbache said that the tax revenues growth would compensate decreasing oil revenues in annual budget in next five years.