Iran Posts $9bn Budget Deficit For First 9 Months Of 2016-17

Iran needs a bumper end to the current financial year ending 20 March if it is to avoid posting a massive budget deficit. Nevertheless, it is set to be an improvement on last year, and performance has improved in the third quarter.

Latest statistics from the Central Bank of Iran (CBI) show that Iran has posted a budget deficit of IR269 trillion ($8.98bn at the exchange rate of $1=IR29,970 set for the 2016-17 budget) for the first nine months of the current year – ie to 20 December. Pro rata, this implies a full year deficit of $12bn, an improvement on the $13.2bn projected after six months (MEES, 9 December 2016). The original 2016-17 budget was balanced as is usually the case, with spending equal to revenue and thus zero deficit.

But revenue from both the oil and non-oil sectors has fallen behind projected levels (see table). (CONTINUED - 756 WORDS)

DATA INSIDE THIS ARTICLE

chart Iran Capitalizes On Sanctions Removal To Boost Oil Sales (‘000 B/D)
chart China And India Responsible For Half Iranian Crude Sales In 2016 (‘000 B/D)