Page 8 - MEOG Week 50 2021
P. 8
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