Iran Parliament Commission Okays Outlines of Budget Bill

EghtesadOnline: The parliamentary body responsible for reviewing the budget bill, Majlis Joint Commission, approved the outlines of the government-proposed budget for the next Iranian year (March 2019-20) on Sunday.

News ID: ۷۴۶۴۸۲

14 January 2019

Out of 40 members of the commission, 22 voted in favor and 16 against the bill while two MPs abstained from voting, IRNA reported.

President Hassan Rouhani submitted the budget bill to the parliament on Dec. 25, 2018. The commission will now have one month to study the bill's details and bring it to the open session of the parliament.

The parliament-approved budget needs the final endorsement of the Guardians Council, the state body in charge of ascertaining the constitutional and Islamic nature of all laws, according to Financial Tribune.

General resources in the budget bill will stand at 4.07 quadrillion rials ($36.01 billion), 5.44% bigger compared to the budget law for the current year (March 2018-19).

Revenues exclusive to ministries and governmental institutes are projected to exceed 709.12 trillion rials ($6.27 billion) in the budget bill, compared with the current year’s 570.73 trillion rials ($5.05 billion) in the budget law.

Government companies, banks and for-profit organizations, which had an 8.39-quadrillion-rial budget (or 74.24 billion) this year will get 12.74 quadrillion rials ($112.74 billion) to finance their operations next year.

The government has set the ceiling of revenues from oil exports (crude oil, gas condensates and natural gas) for the next year at 1.37 quadrillion rials ($12.12 billion) and earmarked 55.02 trillion rials ($486 million) from oil sales for oil-rich, gas-rich and underdeveloped regions.

The government’s overall revenues (except oil sales) for the next fiscal year is predicted to stand at 2.08 quadrillion ($18.4 billion). Tax revenues have been projected to reach 1.53 quadrillion rials ($13.53 billion). The government is allowed to sell 510 trillion rials ($4.51 billion) in bonds and buy 250.02 trillion rials ($2.21 billion) of its own matured bonds.

Government expenditure for the next fiscal has been projected to hover around 3.2 quadrillion ($28.31 billion), including civil servants’ remunerations (952.28 trillion rials or $8.42 billion), goods and services that the government uses (233.75 trillion rials or $2.06 billion), properties and asset expenses (190.62 billion rials or $1.68 million), subsidies allocation (116.37 trillion rials or $1.02 billion), grants (64.7 trillion rials or $572.56 million), social welfare expenditures (1.22 quadrillion rials or $10.79 billion) and other expenses (613.72 trillion rials or $5.43 billion).

All the dollar values in the above text have been converted at the rate of 113,000 rials for 1 US dollar.