Iran: Household Budgets in 31 Provinces

EghtesadOnline: Kermanshah saw the biggest increase in median urban household expenditure with 39.7% and Mazandaran saw the smallest increase with 6% in the last fiscal year (March 2018-19) among Iran's 31 provinces compared with the year before.

News ID: ۷۸۴۸۸۶

23 September 2019

Households in urban areas spent an average of 393,227,000 rials ($3,434) in the last Iranian year, 19.3% more than in the preceding year, according to the latest report published on the website of the Ministry of Cooperatives, Labor and Social Welfare’s Statistics and Strategic Data Center using the Statistical Center of Iran’s figures.

The highest expenditure for urban households was recorded for Tehran (584,676,000 rials or $5,106) and Alborz (432,509,000 rials or $3,777), while the lowest urban household expenditure was recorded for Kerman (237,415,000 rials or $2,073) and South Khorasan (241,436,000 rials or $2,108).

The average expenditure of rural households last year stood at 214,472,000 rials ($1,873), which registers a 20% rise compared with the year before, according to Financial Tribune.

Alborz saw the biggest percentage increase in median rural household expenditure with 37% and Bushehr witnessed the smallest percentage increase with 3.6%. This is while Semnan was the only Iranian province whose rural households reported no change in their level of expenditure compared with the year before last year.

The highest expenditure for rural households was recorded for Alborz (321,357,000 rials or $2,806) and Mazandaran (314,926,000 rials or $2,750).

The lowest rural household expenditure was recorded for Sistan-Baluchestan (99,748,000 rials or $871) and Kerman (125,195,000 rials or $1,093).

In terms of income, urban households declared they received an average income of 434,905,000 rials ($3,798) last year, which shows an 18.6% rise compared with the previous year.

Kohgilouyeh-Boyerahmad Province had the biggest percentage increase in median urban household income at 46.3% and Mazandaran saw the smallest percentage increase at 4.3% last year compared with the year before.

The highest income for urban households was recorded for Tehran (640,303,000 rials or $5,592) and Alborz (500,170,000 rials or $4,368).

The lowest urban household income was recorded for West Azarbaijan (264,711,000 rials or $2,311) and Sistan-Baluchestan (284,699,000 rials or $2,486).

The average yearly income of rural households was 233,114,000 rials ($2,035) last year, which shows a 15.5% increase compared with the previous year.

Markazi Province saw the biggest percentage increase in rural median household income at 35.1% and Mazandaran witnessed the smallest percentage increase at 2%. This comes as Sistan-Baluchestan was the only Iranian province last year whose rural households reported a 4.5% decrease in income compared with the year before.

The highest income for rural households was recorded for Alborz (372,029,000 rials or $3,249) and Mazandaran (360,731,000 rials or $3,150), while the lowest rural household income was recorded for Sistan-Baluchestan (89,586,000 rials or $782) and Kerman (157,412,000 rials or $1,374).

According to the SCI report, sources of generating income for urban households were paid-employment jobs (33.4%), self-employment jobs in farming or nonfarm payroll employment (17%) and miscellaneous sources of income (49.6%).

Sources of generating income for rural households were paid-employment jobs (30.7%), self-employment jobs in farming or nonfarm payroll employment (31.9%) and miscellaneous sources of income (37.4%).

The gap between the highest and lowest median expenditure among urban and rural households stood at 347,261,000 rials (or $3,032) and 221,609,000 rials (or $1,935) respectively.

The gap between the highest and lowest median income among urban and rural households stood at 375,592,000 rials ($3,032) and 282,443,000 rials ($2,466) respectively.

Kermanshah was the only province where urban and rural households both experienced an expenditure-income deficit last year: a deficit of 2,649,000 rials ($23) for an urban household and 5,435,000 rials ($47) for a rural household.

Expenditure-income balance in provincial urban households was positive last year, according to the Persian daily Donya-e-Eqtesad.

Rural households of six provinces reported budget deficits. Expenditure of rural households in Hormozgan exceeded their income by 55,176,000 rials ($481), those of Khorasan Razavi 37,026,000 rials ($323), Sistan-Baluchestan 10,162,000 rials ($88), Markazi 6,774,000 rials ($59), Kermanshah 5,435,000 rials ($47) and Chaharmahal-Bakhtiari Province 2,947,000 rials ($25).

The biggest urban and rural household budget surpluses were reported for Gilan with 93,161,000 rials ($813) and Qom with 100,175,000 rials ($874), respectively.

The biggest urban and rural household budget deficits were recorded for Hamedan with 5,559,000 rials ($48) and Hormozgan with 55,176,000 rials ($481), respectively.

Basket of Expenditures

“Food and tobacco” (94,505,000 rials or $814) accounted for 24% of total expenditures in urban areas, whereas expenditure on “non-food” category stood at 298,772,000 rials or $2,575, accounting for 76% of total spending.

Meat accounted for 21% (the biggest share) of the overall urban households’ expenditures in the “food and tobacco” category. Housing and fuel costs had the lion’s share in non-food category with 45%.

For rural areas, food and tobacco costs constituted 37% or 80,246,000 rials ($691) and non-food costs amounted to 63% or 134,226,000 rials ($1,157) of the total rural families’ expenses.

Flour, Reshteh (similar to noodle), grains and bread accounted for 24% (the biggest share) of the overall rural households’ expenditures in the “food and tobacco” category, whereas housing and fuel costs had the lion’s share in non-food category with 28%.

According to SCI, the average goods and services Consumer Price Index in Iran rose 23.5% last year compared with the year before.

The center put average inflation rate for urban and rural areas at 23.4% and 24.2% respectively.