Iran Cuts 2016-17 Budget In Real Terms Despite Expected Boon Of Sanctions Relief

President Hassan Rohani has achieved what previous Iranian administrations have long aspired to, reducing oil revenues to just 25% of the budget. Of course, this isn’t down to non-oil sector growth, but rather the collapse of oil prices that has sent Brent below $30/B. The budget implies that Iran oil revenues wil fall by around 29% in real terms in the Iranian year beginning 21 March. But even this appears to be based on overly optimistic oil assumptions – either price, export volumes, or both.

Mr Rohani had delayed the unveiling of the 2016-17 draft budget until the lifting of international sanctions against Iran was officially announced on 16 January. The budget was drafted on the premise of complete sanctions removal. Presenting the post-sanctions draft budget to parliament on 17 January, Mr Rohani hailed their lifting as a major turning point for the country’s prosperity and for the creation of stability and security in the region.


DON'T HAVE AN ACCOUNT?


NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?

By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.

UPGRADE