Azernews.Az

The Iranian administration will face a $40.4 billion (based on the official rate of 24,770 rials per USD) deficit in the budget of the current solar year (which started on March 21) if it pays cash subsidies, the parliamentary energy committee's spokesman, Hossein Amiri-Khamkani, was quoted by ILNA news agency as saying.

According to him, the administration can address this problem by increasing prices.

In July, government spokesman Mohammad Bagher Nobakht said the current year's budget projections are too optimistic, therefore, the next administration should revise it.

According to projections, the administration is to face a $28.25 billion deficit in the current year's budget, and some say the figure could be even higher.

Iraj Nadimi, another MP, believes that the deficit in the current year's budget may reach $40.4 billion.

According to the Tasnim news agency, Nadimi said a couple of months' delay in submitting the budget draft to the parliament is the main reason for the loss.

Some MPs opposed the predicted deficit in budget figures and Iran's parliament dismissed a vote on an urgent current year budget bill revision.

On September 4, IRNA news agency quoted Iranian President Hassan Rouhani as saying that the predicted revenues of Iran's current year budget had been fulfilled by 52.8 per cent during the last Iranian calendar month (July 23-August 22).

He said that during the first months of the current solar year the budget revenues were fulfilled by 43 per cent.

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