Iran doing with budget less than $40bn

Young journalists club

News ID: 6100
Iran » Iran
Publish Date: 19:46 - 24 January 2015
Tehran, YJC. Management and planning chief said on Saturday recent drop in oil prices has already made the country to make do with a budget bellow $40 billion.

President of Iran’s Management and Planning Organization (MPO), Mohammad-Baqer Nobakht, said Iran has managed in the past to do with a budget of $55-$60 billion thanks to high oil prices.

"However, the current prices of crude oil in international markets have delivered a shock to Iran’s economy,” Nobakht told an economic event held in capital Tehran titled Iran National Efficiency Conference.

Nonetheless, he said, Iran can manage to run the affairs of the state by resorting to "resistance economy”.

"To the same effect, the government has drafted a collection of policies,” said Nobakht who is also a vice president and the spokesman of the Iranian government.

He added that the solution for Iran is to make efficient use of petrodollars instead of trying to make the economy independent from oil money.

Nobakht’s remarks follow a recent proposal by Iranian MPs to cut the reliance of the Iranian budget from oil revenues to zero. MP Gholamhossein Mesbahi Moghaddam said earlier this week that a motion on the same front has been signed by 150 MPs and will be moved ahead in the near future.

The main mechanisms envisaged in the motion include promoting the role of the private sector in development projects as well as selling securities to the general public.

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