Iran Eyes Balanced Budget Despite Gloomy Outlook

Iran plans a 2015-16 budget “without any deficit,” despite the precipitous fall in oil revenue, Iranian President Hassan Rohani said this week.

The general budget for the year beginning 21 March 2015 (covering current and development expenditure), is provisionally projected at IR2,190 trillion ($82.6bn at official budget exchange rate of $1=IR26,500), compared to IR1,950 trillion in the current year (MEES, 13 December 2013).

In real terms the new budget appears to be slightly smaller than this year’s after adjusting for an official inflation rate of around 13-14% expected next year.

Speaking on state television, the president said that the general budget will include an allocation of IR460,000bn ($17.4bn) for the development budget, though he did not announce any figures for the budget for state-owned banks and enterprises – usually more than double that of the general budget. (CONTINUED - 1113 WORDS)