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Iranian lawmakers work two ceilings into budget

17 March 2015 13:55 (UTC+04:00)
Iranian lawmakers work two ceilings into budget

By Sara Rajabova

Following the fluctuations in global oil prices, Iran parliament has worked two ceilings into the country’s national budget for its next fiscal year, starting March 21.

“The government has given parliament the budget plan assuming oil prices will stand at $50 per barrel. But we made our projections on the basis of $40 per barrel, while global market prices are already higher than that,” said Ali Larijani, Iran parliament speaker, Fars news agency reported.

The government announced earlier that it prepared a special plan for running the country should oil prices drop to $40.Iran President Hassan Rouhani presented the administration's draft of the national budget bill to parliament last December.

Larijani further added that by giving the national budget two ceilings, financial provisions had been made to open up funds for construction projects should oil prices increase by the second half of the Iranian fiscal year -September 23.

He added the budget for construction projects has been set at 300 trillion rials (27,997 rials making $1).

The parliament speaker pointed out that experts estimate Iran’s next year economic growth to hit 2 percent, investment to grow by 4 percent, and inflation to reach 14 percent.

He stressed the next year’s budget gives 52 trillion rials to the production section, transportation, and fuel optimization.

The production section is a new part devised into the budget, according to Larijani. Previously it was overlooked because money was paid to people as cash subsidies.

He added that the budget also allocates 48 trillion rials of the subsidies reform revenues to the health sector.

Larijani further noted that the cash subsidies would not undergo much change compared to the current fiscal year.

The Iranian law makers gave in early march a final approval to the budget bill proposed by the government for the next Iranian calendar year.

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.

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Sara Rajabova is AzerNews’ staff journalist, follow her on Twitter: @SaraRajabova

Follow us on Twitter @AzerNewsAz

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