Iran’s next budget bill scrutinized

Financial Tribune – With the due date for the government’s submission of next fiscal year’s (March 2020-21) budget bill to parliament just around the corner—the Plan and Budget Organization of Iran is scheduled to submit it to Majlis on December 8—reports and speculations are rife on how the bill will play out.

On Saturday, the Supreme Council of Economic Coordination, chaired by the heads of three branches of government, held a meeting for drawing up the outlines of the budget and exchanging notes on its sources of revenues, spending and the impact of structural reforms.

The Plan and Budget Organization has announced time and again in recent months that current spending levels from oil revenues will be cut to zero as of the next fiscal year, indicating that the government will have to run the country by only tapping into other sources of revenues.

“In the next fiscal year’s budget, oil will be removed from sources of financing current expenditures altogether,” said the head of Plan and Budget Organization, Mohammad Baqer Nobakht, adding that all revenues gained from crude sales will be spent on development projects and acquisition of capital assets.