Page 8 - MEOG Week 50 2021
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MEOG                                      POLICY & SECURITY                                            MEOG






































       Iran’s draft state budget



       based on oil at $60 per barrel





        IRAN             IRAN has pencilled in 8% economic growth  has been relying on China turning a blind eye
                         and oil exports running at 1.2mn barrels per day  to American demands to import substantial
                         (bpd) at a price of $60 per barrel in its draft state  amounts of Iran’s crude on the grey market.
                         budget.                                State media reported that the nominally bal-
                           Iranian President Ebrahim Raisi presented  anced draft budget amounted to 15,052 trillion
                         the proposed budget on December 12 to  rials ($50.2bn at the free-market exchange rate).
                         parliament.                          The new budget is about 10% bigger than the
                           Some of the economic strains it must address  current budget in local currency terms. How-
                         manifested on December 13 outside the par-  ever, its value in real terms is lower due to annual
                         liament building when – backing teachers and  inflation running at more than 40%.
                         educators in Iran who were on strike for a third   The draft budget has to be passed by parlia-
                         day straight demanding better pay – hundreds of  ment and approved by a clerical body that vets
                         protesters gathered, RFE/RL reported.  legislation before it becomes legislation on the
                           Video posted on social media showed scuf-  books.
                         fles during the rally as security forces apparently   Some MPs criticised the budget for in a scar-
                         tried to detain one of the protesters.  city on detail, including on the allotting of money
                           The fiscal plan for the next Persian calendar  for women’s rights
                         year (starts March 21) has been drawn up on the   Raisi told MPs: “A requirement for eco-
                         assumption that the US sanctions would con-  nomic stability is ensuring a budget that does
                         tinue. That could change if the ongoing Vienna  not have a deficit. If there is a budget deficit, this
                         talks manage to restore full Iranian and US com-  will become the root of many problems in the
                         pliance with the nuclear deal, or JCPOA.  country.”
                           “The growth projects include 4.5% in invest-  “In the… budget, borrowing from the central
                         ment growth and 3.5% in productivity growth,”  bank and increasing the monetary base are a red
                         Raisi told parliament, state media reported.  line. The plan is to prevent this, because it will
                           With US sanctions still in place in an effort  create serious problems for the country’s econ-
                         at keeping Iranian oil of world markets, Iran  omy,” he added.™









       P8                                       www. NEWSBASE .com                      Week 50   15•December•2021
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