Foreign Ministry’s Budget Down 10%

EghtesadOnline: The Foreign Ministry’s budget, when converted to foreign currency, is 10% less in the current fiscal year (2021-22) compared with that of last year (2020-21).

News ID: ۷۸۶۵۱۰

27 June 2021

“The current year’s budget also shows a decline of 16% and 30% compared with the fiscal 2019-20 and 2018-19, respectively,” ISNA reported, citing the ministry’s Public Relations Department.

“The ministry’s foreign exchange budget rate was set at 120,000 rials per US dollar in the fiscal 2020-21, while the conversion rate of 224,000 rials has been set in the Budget Law of 2021-22. Accordingly, the ministry’s budget has decreased compared with last fiscal year, despite its increase of 90% in terms of rial, as its expenses are in foreign currency,” the statement read.

Earlier, a report by Majlis Research Center, the research arm of the Iranian Parliament, noted that the Foreign Ministry’s budget has increased by 76% compared with previous years due to the surge in foreign exchange rate and expenses of services provided by the Iranian government in other countries.

“Budget constraints in recent years have made the ministry consider reductions in salary of employees on foreign missions, elimination or reduction of unnecessary positions, reducing diplomatic missions as well as their durations, and sooner than originally planned return of envoys, among other measures,” the statement read.

According to Majlis Research Center, the total funding for three branches of power in the budget law for the current fiscal year (March 2021-22) has increased by 2,920 trillion rials ($12.3 billion) or 60% compared with that of last year.

Funding cited in Table 7 of the Budget Law (2021-22), which includes an operating budget for executive agencies, has increased to 2,650 trillion rials ($11.16 billion) or 61% compared with the Budget Law of 2020-21.

Agencies, which operate under the executive branch, including ministries, their departments and agencies under the supervision of president, account for 2,140 trillion rials ($9.01 billion) of the rise; their funding has increased by 56% compared with the last year.

The budget of legislative branch (Iranian Parliament, Supreme Audit Court of Iran, Majlis Research Center and other related agencies) has increased by 67% year-on-year.

The budget of judiciary branch, including Iran’s Administrative Justice Court, Inspectorate Organization of Iran, Real-Estate Registration Organization, Prisons and Security and Corrective Measures Organization and other related organizations, has jumped by 57% compared with last year.

Other agencies, including the Islamic Republic of Iran Armed Forces, cultural, educational and scientific centers outside the purview of three branches account for 20% of the overall funding and their budget has increased by 76% compared with last year.