29 Mar 2024
Tuesday 13 December 2016 - 16:05
Story Code : 242769

Rouhanis budget proposal reverses declining reliance on oil

Al-Monitor- Iranian President Hassan Rouhani presented the last budget bill of his current term to the parliament Dec. 4. The state budget for the next Iranian year, beginning March 21, 2017, will exceed 10 quadrillion rials ($328 billion at anexchange rate of 33,000 rials to the dollar) for the first time in Irans history. It is 10.9% larger thanthe current year's budget, but it looks to be more realistic as government revenue is projected to increase only by1.5% while reliance on tax revenues will grow steadily.

Thanks to the lifting of nuclear-related sanctions Jan. 16 as part of the Joint Comprehensive Plan of Action, the Rouhani administration seems to have felt less pressure preparing the budget bill. Indeed, the figures released by the administration indicate that it has adopted neither a contractionary nor an expansionary fiscal policy for the coming year. The proposed budget forecasts7.7%growth in gross domestic product (GDP)and expansion of themoney supply by19%, with anexpected inflation rate of 7.6%, which is slightly less thanthe currentlevel.

The prospect of increasing oil revenue, the gradual repatriation of unblocked state assets abroad and projected 12.3% growth in investment have given administration officials hope that they will be able to hit theirestablished targets.
Read more here
https://theiranproject.com/vdcjm8e8huqexaz.92fu.html
Your Name
Your Email Address