Iran's Rouhani presents first budget to parliament
By Sara Rajabova
The budget bill for the next Iranian calendar year, which begins on March 21, is about $ 315-billion.
Iranian President submitted the bill on the country's draft budget to the parliament, vowing to bring down inflation and boost growth to lift an economy reeling from sanctions and what he says was mismanagement by predecessor Mahmoud Ahmadinejad.
The government sources said the bill has been devised on an average oil price of $100 per barrel with an exchange rate of 26,000 rials against the dollar.
The government's budget is set at around $75 billion.
Special committees of the parliament are now required to present their report about the budget draft in 15 days' time.
Iran has been facing harsh economic problems due to the sanctions imposed on country over its nuclear problem and mismanagement of the previous administration.
Inflation has soared for two years and productivity has slumped as ever tougher economic sanctions imposed to counter Tehran's nuclear programme have taken their toll.
The country's oil exports, its major source of revenues, have halved since 2011 as a result of sanctions on its oil, shipping and banking sectors imposed by Western nations over Iran's disputed nuclear program.
Currently, the country is facing above 40-percent inflation, also unemployment rate hit 12.20 percent in the first quarter of 2013 from 11.20 percent in the fourth quarter of 2012.
"Employment is the most important future issue for the economy but now the biggest problem is (tackling) stagflation," Rouhani said in parliament in an address shown live on state television.
Rouhani said the combination of the levels of inflation and stagnation over the past two years has been unprecedented.
He added that his administration has been able to reduce the monthly rate of inflation from 3.4 percent in June to 1 percent in November.
Rouhani indicated a new mechanism for subsidy payments would be put forward soon.
Rouhani also expressed hope that Iran will be able to raise its gas production capacity by100 mcm/d by March 2015 after four phases of the South Pars gas field would come on-stream.
The government spokesman, Mohammad-Baqer Nobakht said earlier the country was forecasted to export 1.1 mb/d of crude oil and 300,000 b/d of gas condensate in the next calendar year starting in March 2014.