Financial Tribune- The government’s overall revenues during the first 10 months of the current fiscal year (March 21, 2017-Jan. 20) amounted to 421.9 trillion rials ($8.97 billion), posting a rise of 28.2% over last year’s corresponding period, while its spending hit 757 trillion rials ($16.1 billion) to register a 28% growth year-on-year.
The government issued 607.2 trillion rials ($12.91 billion) worth of bonds during the period, which are 77.9% higher compared with the corresponding period of last year to cover its deficit of 335.1 trillion rials ($7.12 billion), according to the latest report by the Central Bank of Iran.
The previous CBI report showed the government’s overall revenues during the nine months to Dec. 21, 2017, stood at 340.3 trillion rials ($7.57 billion), registering a rise of 27.8% compared with last year’s corresponding period, while its spending hit 725.7 trillion rials ($16.15 billion) to record a 35.6% growth year-on-year.
As a result, the government had to issue 74.8% more bonds in the nine months YOY to cover its widening deficit of 385.4 trillion rials ($8.57 billion). As much as 601.4 trillion rials ($13.38 billion) worth of bonds were issued during the period under review.
Revenues associated with the sales of oil and petroleum products reached 718.5 trillion rials ($15.28 billion), indicating a 46% rise YOY, but lower than the projected 954.9 trillion rials ($20.31 billion).
Although tax revenues were estimated to hover around 976.3 trillion rials ($20.77 billion), they only reached 797.7 trillion rials ($16.97 billion), registering a 6.8% increase YOY.
The government’s tax revenues consist of returns from direct and indirect taxation. Direct taxes include three groups of “tax on legal entities”, “income tax” and “wealth tax”.
Overall, direct tax revenues stood at 368.8 trillion rials ($7.84 billion) during the 10 months, registering a decline of 4.2% YOY.
Indirect taxes, including “tax on imports” and “tax on goods and services”, reached 428.9 trillion rials ($9.12 billion), indicating an 18.5% rise YOY.
The CBI report also shows tax on imports generated 117.3 trillion rials ($2.49 billion), 30.1% more than last year’s corresponding period while tax on goods and services earned the government 311.5 trillion rials ($6.62 billion), up 14.7% YOY.