Iran’s budget steers clear of oil money

Financial Tribune – Iran’s 4,480-trillion-rial ($37.64 billion) budget for the current fiscal year (March 2019-20) is based on the sale of 300,000 barrels of oil per day, the deputy head of Plan and Budget Organization said.

Hamid Pourmohammadi added that by adopting a number of budget reforms, the government has paved the way for reducing reliance on oil revenues.

Last year’s (fiscal 2018-19) budget was based on the sale of 1.5 million barrels and that of fiscal 2017-18 forecast selling 2.68 million barrels of oil per day, the official was quoted as saying by Mehr News Agency.

“The Islamic Republic rose to the occasion against US sanctions and reduced national costs and boosted revenues. By introducing structural reforms, budget dependency on petrodollars has nearly lowered to zero,” he said.

One would consider the impact of sanctions on Iran’s ability to sell oil as a blessing in disguise, as it has prompted Iran to figure out a way to finance its affairs without oil revenues.