Iran experiencing significant negative operating budgetary balance

Business Materials 10 February 2018 13:21 (UTC +04:00)

Baku, Azerbaijan, Feb. 10‎

By Gazenfer Hamidov – Trend:

Iranian government’s total revenues stood at 953.3 trillion rials (each USD makes 37,000 rials based on official rate) during the first nine months of the current fiscal year (March 20-Dec. 21, 2017).

Meanwhile, over 1,316.5 trillion rials of revenues were envisaged in the national budget for the mentioned period, which means that the government revenues were materialized by 72 percent, based on latest data released by Central Bank of Iran (CBI).

Total revenues of the Iranian government registered a rise by 7.7 percent during the 9-month period year-on-year.

The Iranian budget foresees 1,741 trillion rials of revenues for the government during the current fiscal year (started March 20, 2017).

The government’s overall revenues amounted to 885.2 trillion rials in first nine months of the last fiscal year (March 20-Dec. 21, 2016), 25.2 percent more year-on-year.

Iran’s tax revenues amounted to 683.8 trillion rials in the 9-month period of current fiscal year, registering a 4.4 percent rise compared to the same period of the preceding year.

About 74.4 percent of the tax revenues envisaged by the national budget bill (880.6 trillion rials) have been realized during the 9-month period.

Tax evasion is considered as a main problem in the country. Officials suggest that 43 percent of Iranians, entities, institutions or organizations who produce goods and services are excluded from paying taxes.

Iranian tax officials estimate that the value of tax evasion in the country is between 130 trillion and 300 trillion rials.

According to the CBI report, the government spending amounted to 1,635.2 trillion rials in the 9-month period, 16.8 percent more compared to the first nine months of the last fiscal year (March 20-Dec. 21, 2016).

The budget has envisaged 2,538.2 trillion rials of spending for the government for the current fiscal year, of which 1,919.3 trillion rials are allocated to 9-month period.

The CBI data indicates that Iran experienced a negative operating budgetary balance by 725.7 trillion rials, 35.6 percent more compared to the same period of last year (-535.3 trillion rials).