Iranian parliament gives final say on next year’s budget
By Sara Rajabova
Iranian lawmakers have given their final approval to the budget bill proposed by the government for the next Iranian calendar year, starting from March 21.
The MPs approved on March 3, the IRR 8,440 trillion (nearly $300 billion) budget bill with 144 votes in favor, 33 against and 6 abstentions, Press TV reported.
The overall budget for next year shows a 4 percent growth compared with the current year.
Iranian President Hassan Rouhani presented the administration's draft of the national budget bill to the parliament last December.
Lawmakers said the dependency on oil exports in the overall budget bill has dropped to 25 percent. The Iranian government has been trying to increase non-oil exports in a bid to slash its reliance on oil revenue.
The bill will now go to the top oversight body Guardian Council, whose approval is required for the bill to be signed into law.
It will be sent back to parliament for amendments if it is voted down by the Guardian Council. In case, the MPs insist on their own version, the top arbitration body Expediency Council will intervene.
Also, an additional $1 billion was allocated in the upcoming fiscal year to the defense budget to strengthen the armed forces, which reinforces the country’s Supreme Leader’s call to build up the regime’s military capabilities.
Moreover, the budget bill cuts subsidies from roughly $15 to $14 billion. Parliament passed next fiscal year’s budget bill implementing reduced cash and non-cash subsidies, after reviewing the provisions of the costs of the bill.
Subsidies for high-income families in particular will be cut. The subsidies are designed to help needy families as well as provide assistance to the manufacturing sector.
Mohammad Baqer Nobakht, Head of Iran's Management and Planning Organization said earlier that the government intends on cutting cash subsidies to financially-fit Iranians and those who live overseas.
The elimination of state subsidies to rich Iranians was on the agenda of President Hassan Rouhani’s administration for some time. However, a lack of a comprehensive database hindered efforts to identify those rich people in receipt of such payment. Therefore, implementing measures to regulate subsidies were delayed.
--
Sara Rajabova is AzerNews’ staff journalist, follow her on
Twitter: @SaraRajabova
Follow us on Twitter @AzerNewsAz