Azernews.Az

The Iranian Chamber of Commerce reviewed and analyzed the current year's national budget bill at its monthly meeting on July 2, Donya-e -Eqtesad newspaper reported.

The members of the Chamber expressed concern about the sharp budget deficit in the current year. According to them the government will face financial problems. They said the expectation of a miracle from the president-elect may spread disappointment and have negative effects on the society.

According to the Donya-ye Eqtesad Persian language daily, the meeting reached the conclusion that the budget bill has not been furnished with any policy to deal with sanctions, cut the unemployment rate and increase the economic growth rate up to eight per cent.

If the budget bill is approved, the country will be faced with severe financial problems, so that monetary moves cannot curb the inflation rate, the Trend Agency reported.

Chamber's vice chairman for economic studies Ebrahim Bahadorani put the current affairs budget for the current Iranian calendar year 1392 (March 2013-March 2014) at 2,100 trillion rials , about $84.7 billion based on Tehran Forex Centre exchange rate of 24,790 rials, compared to 1440 trillion rials in the past year, of which 1070 trillion rials was allocated. The development budget has been set at 560 trillion rials compared to 380 trillion rials, of which 150 trillion rials was allocated.

Incomes have been envisaged to hit 910 trillion rials, of which 570 trillion rials is projected to be gained through taxation. The tax revenues are estimated to increase by 44.3 per cent year on year, he said. Some 280 trillion rials will be gained through proprietorship indicating a 226 per cent rise year on year.

According to the budget law, incomes through transferring capital assets will hit 70 trillion rials, 91 per cent of which will be oil revenues. A comparison between incomes and expenditures excluding oil incomes, show that incomes and expenditures are estimated to hit 910 trillion rials and 1280 trillion rials, respectively showing a 370 trillion rials difference.

Bahadorani went on to say that oil income is forecasted to reach $26 billion in the current year if 1.3 million barrels of oil are exported per day at $95 per barrel. Considering that oil exports are subject to international sanctions, exporting 1.3 million barrels of oil per day seems unlikely, he added.

Referring to tax income he said that customs duties and charges will be reduced this year considering problems for importing goods under the international sanctions. Moreover, considering the current situation of stagnation, any growth in the amount of taxes which are paid by state-run companies and one twelfth of which is collected seems unlikely.

Ahmad Torknejad, a member of the Tehran chamber of commerce, said for his part that being optimistic, just 70 percent of targets of the budget bill are realisable. In reality, the figure will not exceed 50 per cent.