Iran Agrees Budget Increase of 20 per cent

A02469542.jpgTEHRAN (FNA)- Iran’s budget for the new Iranian year, which starts on 21 March, will be 20 per cent bigger than last year, at $304bn compared with $253bn.

The final figure for the budget was revealed after the finance law received final approval from the Majlis, Iran’s parliament.

Iran’s central and regional governments will spend $84bn. The remaining $220bn will be spent by state-owned banks and other enterprises.

The government expects 58 per cent of its revenues to come from oil and gas, 25 per cent from taxes, and 17 per cent from other sources, including receipts from the privatization of companies.

The budget assumes that oil will average $50 a barrel over the 2008-09 Iranian year. Whenever the price of oil exceeds $50 a barrel, the surplus will go to the Oil Stabilization Fund.

This year’s budget is the first to provide only a general breakdown of revenues and expenditures after President Mahmoud Ahmadinejad decided that the government needed greater flexibility in its spending decisions.

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