Tehran, Dec 1, IRNA � Deputy Head of Majlis Plan, Budget and Auditing Commission Hadi Ghavami said on Sunday that the country?s economic growth is predicted to reach about 2.2 percent based on the budget bill for the next Iranian calendar year of 1393 (to start on March 21, 2014).
Ghavami told IRNA that the country?s economic growth now stands at minus 5.8 percent and it will reduce to 0.8 percent by March 20, marking the end of the current Iranian calendar year.


He said based on the government?s forecast, investment growth rate will stand at 12.2 percent next year and the productivity growth rate at 2.5 percent.


The price for each barrel of oil is estimated at 100 dollars, which is equal to 26,000 rials, in the next year budget bill.


Ghavami said based on the statistics available the next year?s budget bill will be contractionary.


The Iranian administration will submit the budget bill for the next Iranian calendar year to the parliament within the next two days, the Tasnim News agency quoted the Iranian Vice President for planning Mohammad-Baqer Nobakht as saying.


The U.S. dollar exchange rate will be fixed in the budget bill. Moreover, the budget bill has envisaged that the second phase of the subsidy reform plan will be implemented next year, he added.


On October 16, the Iranian parliament (Majlis) approved general outlines of the current year?s budget bill amendment.


The Majlis approved the current year?s 7.270 quadrillion rail (about $295 billion based on the official U.S dollar rate, a dollar equals to 24,900 rials) budget bill.


According to experts, some income figures including predicted tax, customs and oil export revenues in the budget will not be realized.


In mid-August, ISNA quoted First Vice President Eshaq Jahangiri as saying that Iran?s current year budget will be revised because one third of the government?s incomes envisioned in the budget would not be realized.


In July, the President?s economic advisor Mohammad Bagher Nobakht, said that the current year?s budget is too optimistic and therefore the next administration should revise it.


Conservative MP Ahmad Tavakoli had said that the current year?s budget is not realistic and may result in even higher inflation.


Predicted incomes of the current year?s budget have been realized by 52.8 percent, Iranian President Hassan Rouhani said as quoted by IRNA.


Rouhani recalled that the country is facing a massive budget deficit, adding the current year?s budget, proposed by the previous administration is unrealistic.


By IRNA


 


The Iran Project is not responsible for the content of quoted articles.