Weekly MENA Newsletter will be delivered to your email in PDF format every Friday (52 Issues per Year).
Iran’s draft budget for the Iranian year 1393, starting on 21 March 2014, will be based on an oil price assumption of $100/B, a member of the Majlis Budget and Planning Commission Hadi Qavami told the Iranian Students News Agency (ISNA) on 1 December. This price compares with $95/B for the 2012-13 budget (MEES, 1 March). The government was scheduled to present the new budget to parliament on 4 December, but this has now been postponed for a few days.
Mr Qavami says that the 2013-14 general budget covers current and investment expenditure totaling IR1,910 trillion, up from IR1,710 trillion in the current year. The draft budget will be based on an “official” exchange rate of $1=IR26,000. The free market rate is around $1=IR29,000. Although the increase in the general budget is 11.7% in nominal terms, soaring inflation implies a sharp budget cut in real terms. Latest inflation is officially 36%, but could be as high as double that or more according to independent economists. (CONTINUED - 370 WORDS)