Iran's budget for 2013 as mirror of economic opportunities

Iran's budget for 2013 as mirror of economic opportunities

Azerbaijan, Baku, Nov. 22 /Trend/

Ellada Khankishiyeva, Trend Analytical Center Head

Iran is preparing basic financial document - the state budget for next year, which begins on March 21, 2013 in the country. The bill will be presented to the Parliament of Iran until December 5.

Based on the fact that Iran hasn't achieved any success in economic terms this year, but on the contrary, mired more in economic sanctions against the country, it can be assumed that the overall state budget for the next Iranian year will be an extension of this year's budget. Iran's state budget revenues for 2012 are projected at 5.66 quadrillion rial (about $461 billion).

Generally the revenue and expenditure side of the budget for next year isn't known yet, but there is no doubt that the budget will be scarce and the deficit will be significant. Thus, Iran expects a deficit of 540 trillion rial (about $44 billion) this year contrary to the strategy adopted for the gradual reduction of the budget deficit. Today, many sectors of the country don't receive even less part of what they should to receive according to the budget.

The reason is the decline in Iran's oil trade by 40 percent this year - the main source of revenue.

The Iranian government has long been discussing ways to reduce dependence on oil revenues of the state budget and looking for replacement options. But as these discussions have not yielded results and an alternative to oil revenues isn't found then expected revenues from the oil sector will again account for a based part of the state budget for 2013. According to the forecasts of Iranian Foreign Ministry, which sometimes go against independent estimates, oil production in Iran will increase annually through the development of joint deposits and reach5.2 million barrels per day by March 2016 compared to the current 4 million barrels.

The rest of the state budget revenues, such as taxes and fees, as well as funds released as a result of cuts in state subsidies for energy, despite their importance, are purely secondary for the country at this stage.

The budget expenditures are mostly composed of funding of direct social spending, which has increased sharply in the current year. The Iranian parliament approved a law on suspension of the governmental subsidization plan's second phase on October 7. According to secretary of Iranian Expediency Council Mohsen Rezai, as a result, cash subsidies to citizens should be raised to 1.1 million rials (about $ 90) per person, from 450.000 rials (about $ 37), which are currently paid by the state.

Provision of production sector with liquidity will also become a priority next year. Iran is planning to independently produce consumer goods, which are currently imported. As in the current Iranian calendar year, about 800 trillion rials (about $ 65 billion) are required for the manufacturing sector of the country to meet the needs, next year, given the ambitious plans to expand the range of manufactured goods, the manufacturing sector will require even more public investment. Iran plans to achieve great success in its defense sector and to achieve self-sufficiency in production of essential military equipment and systems.

The measures to ensure the country's food supply, in particular, the creation and preservation of these resources, will require additional funds from state budget next year. Therefore, if previously food products were stocked for three months, today under sanctions, Iran extended this period to nine months.

The expenses on the state apparatus may be reduced this year as it was done last year, but it will not affect the financing of defense spending, health care, education and science.

During the discussion of the draft budget for 2013 in Iranian parliament the basic contours of the budgetary system will stand out more clearly. But based on the current conditions of Iran's socio-economic and socio-political development, it can be assumed that, in general, except for a strategically important industry, the investment focus of the budget next year will not be strengthened, and the efficiency of the social sector's public expenditure will not be improved through changes in their structure. It is known that the society can afford to have a system of state budget, which most accurately reflects its realities, and Iran's realities today are not a secret for anyone.

Subscribe to Trend in Google News! Subscribe
Iran’s Bahar Azadi gold coin price rebounds
Iran’s Bahar Azadi gold coin price rebounds
Iran unveils amount of honey gathered countrywide
Iran unveils amount of honey gathered countrywide
Iran strikes deal with Romania for export of technical, engineering services
Iran strikes deal with Romania for export of technical, engineering services
Loading Bars
Latest
Growth of Azerbaijan's non-oil sector reaches all-time high
Chief of General Staff of Azerbaijani Army meets with Bulgarian delegation (PHOTO)
Iran’s Bahar Azadi gold coin price rebounds
FAO eyes another Partnership Programme on Food and Agriculture project in Turkmenistan
Azerbaijan to see increase in asylum seekers - deputy chairman of Supreme Court
Central Bank of Azerbaijan works consistently to curb inflation
Iran unveils amount of honey gathered countrywide
Kazakhstan’s Atyrau Oil Refinery to buy gaseous nitrogen via tender
Kazakhstan's economic growth is expected to accelerate in 2022 - Renaissance Capital
New military facilities commissioned in Azerbaijani liberated territories (PHOTO/VIDEO)
Azerbaijan increases marketable oil and gas production
Russia starts manufacturing reactor for Kudankulam nuclear power plant
Number of foreigners receives labour permits in Azerbaijan - State Migration Service
Azerbaijan eyes to raise quota for issuing labor permits to foreigners this year - State Migration Service
India at UNSC: Looking forward to Sudan's successful completion of transition phase
Uzbekistan notes growth in macroeconomic indicators
Jaishankar speaks with EU counterpart, discusses Afghanistan, Myanmar
OPEC expects Azerbaijan to boost oil output in 2022
UK regulator fines Mastercard, others for prepaid cards cartel
PM Modi: Best time to invest in India, multilateral institutions need reforms
Ministry unveils number of companies with Russian capital in Azerbaijan
Azerbaijani citizens without COVID-19 passports won't be allowed to buy tickets for bus trips to liberated lands
Azerbaijan creates website for trips to liberated Karabakh
Iran strikes deal with Romania for export of technical, engineering services
No mine threat in Azerbaijan's Shusha - ANAMA
Gas transportation through South Caucasus Pipeline increases
Azerbaijan plans to demine tens of thousands of hectares of liberated territories - ANAMA
USAID’s support can increase foreign direct investment in Turkmenistan - official
UNHCR thanks Azerbaijan
Indian Prime Minister delivers ‘State of World’ special address at World Economic Forum’s Davos Agenda
Largest philanthropist not only in Azerbaijan, but also in South Caucasus is Heydar Aliyev Foundation - President Ilham Aliyev
Kazakhstan discloses systematic measures to reduce inflation rate
Baku-Tbilisi-Ceyhan's oil transportation from Azerbaijan down
I was offered few alternative locations for statue, and I chose this place, because it is place worthy of name of Zeynalabdin Taghiyev - president
Kazakhstan's President Tokayev to be elected chairman of Nur Otan party soon - First President of Kazakhstan
By sending hundreds of students to Russia and Europe, Haji Zeynalabdin Taghiyev clearly thought about future - President Ilham Aliyev
As result of Heydar Aliyev Foundation's activities, Azerbaijan is better known, and it was this factor that helped us during Second Karabakh War - President Ilham Aliyev
Today, Heydar Aliyev Foundation faces new tasks - President Ilham Aliyev
Sinopec gets first LNG cargo under new deal with Qatar
Brent to breach $100/bbl as demand weathers virus surge- Goldman Sachs
Azerbaijan ranks among top aviation fuel exporters to Georgia
I'm on deserved rest in capital and haven't left anywhere - first president of Kazakhstan
Iran reveals COVID-19 data for January 18
Russia documents 31,252 daily COVID-19 cases, highest number since December 6
USAID supports Turkmen government and local partners to improve securities market
Websites that will make the work of Graphic Designers easier
UNHCR discloses number of Azerbaijani refugees provided with legal assistance before Second Karabakh War (PHOTO)
Production of Iran's Khorasan Steel Company increases
National Iranian Oil Company to take steps on development of North Pars gas field
Azerbaijan fils lawsuits against Armenia to European Court of Human Rights
Non-OPEC crude oil supply to continue upward trend by 2023
Visitors from Azerbaijan to Georgia spend less in 2021 - NBG
Europe to see increase in jet fuel demand – JP Morgan
Iran’s NISOC announces date for launch of extraction from Kish gas field
Israel sticks with 4th vaccine shot, sees Omicron wave waning in a week
Uzbek Central Bank shares data on volume of reserve assets and gold reserves
Azerbaijani public representatives send appeal to French President
Iran's economic growth improves - CBI
Oil demand set to rise by 2023, says JP Morgan
Central Bank of Iran discloses amount of loans issued for agricultural sector
Azerbaijan increases wine imports from Georgia
Epsilon obtains industrial gas inflow from new well at field in Uzbekistan
AFAB Cataract Campaigns on Int’l Day of Elderly in Niger (FOTO)
JP Morgan expects Azerbaijan’s oil output to decline in 2022-2023
Amount of loans issued by Iranian banks soars
NIOC intends to extract gas from Iran-Saudi Arabia joint Farzad B gas field
Azerbaijani FM leaves for Austria on working visit
Iran sees increase in trade turnover with ECO member states
UAE bourses open in red after Houthi attack on Abu Dhabi
Time of market test for Greece-North Macedonia gas pipeline announced
Azerbaijan holding talks on regular flights to Fuzuli Int’l Airport – deputy minister
Georgia reveals wine export growth dynamics in strategic markets
Azerbaijan reveals procedure of buying tickets for bus trips to liberated lands
Trips to Azerbaijan's liberated areas on all routes to be carried out in one day - ministry
At first stage only Azerbaijani citizens allowed to visit Karabakh – deputy minister
Citizens can visit liberated districts of Azerbaijan once a year - agency (PHOTO)
Police cars to accompany passenger buses through Azerbaijani liberated lands
Azerbaijan discloses cost of bus trips to liberated areas (PHOTO)
Azerbaijan to launch regular bus trips to Karabakh soon
Kazakhstan to keep inflation in energy sector within set borders - ministry
President Ilham Aliyev unveils monument to philanthropist Haji Zeynalabdin Taghiyev in Baku (PHOTO/VIDEO)
Iran’s NIOC interested in increasing gas exports
Azerbaijan discloses loans of banks being liquidated by Deposit Insurance Fund
Turkmenistan, Uzbekistan affirm commitment to Afghanistan
Azerbaijani Express-C company’s bonds included in listing of Baku Stock Exchange
Azerbaijan Airlines to present new “Azal Club” loyalty program
Kazakhstan to amend supply chain of petroleum products
2021 enters Azerbaijani history as year of social reforms - Analysis
Turkmenistan, Uzbekistan see significant increase in mutual trade
Georgia’s trade turnover figures grow – TBC Capital
2022 budget for Ighdir-Nakhchivan gas pipeline disclosed
Georgia publishes COVID-19 data for January 18
Azerbaijan, Turkey discuss co-op on restoration projects in Karabakh
Uzbekistan shares domestic COVID-19 data for January 17
New school built in Azerbaijan's Gazakh on Heydar Aliyev Foundation's initiative (PHOTO)
Iran's Energy Exchange announces products to be on sale on January 18
Kazakh Gas Processing Plant opens tender to buy spares for pumps
Azerbaijan shares data on prices of various food products for 12M2021
Money transfers from Kazakhstan to Georgia triple
Kazakhstan eyes to build fish factory in Mangystau region
All news