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Iran's budget cuts dependence on oil revenues

23 May 2012 [17:20] - TODAY.AZ
The international community is focusing on the Iranians state budget for 2012.

Iran's state budget for 2012 approved by parliament is 5.66 quadrillion rials (about $ 461 billion), or 9.5 percent more than last year (5.17 quadrillion rials).

Iran's ability to ensure the revenue component of the state budget because of the restrictions on exports of Iranian oil to the world markets is under question. According to Iran's five-year development program, the Iranian government achieved reducing dependence of the state budget on oil revenues by two times this year.

An analysis showed that Iran's state budget revenues will be mainly formed from traditional sources, one of which is taxes. This year, it is expected to receive $ 37 billion due to taxes. The proceeds through this line will increase due to the increase in taxes by 20 percent in Iran this year. It should be stressed that the taxes with National
Iranian Oil Company are indicated in a certain clause of the Iranian state budget as oil revenues.

Another major source of the state budget revenues are the funds
released as a result of reducing the state subsidies for energy
resources and other raw materials in the domestic market. The revenues
from the subsidy reform program this year will amount to $54 billion.

Iran's state budget expects to receive $50 billion by selling oil on the world markets. It was mentioned that Iran expected to get $ 100 billion through this line in last year's budget.

But if Iran manages to ensure a way out of the planned oil volume to the world markets,
the profits from it will be much higher as the price per oil barrel in the state budget is set at conservative $ 85, while world oil prices exceed $ 100 per barrel.

The proceeds from state-owned commercial companies and banks are also accumulated in a separate clause of the Iranian state budget, which will allegedly receive over $ 100 billion.

That's all sources of replenishing the budget revenues. They were briefly and clearly set out the points of the main financial document of the country and are designed to implement the tasks set before the country. However, it is hard to imagine how the Iranian government plans to ensure the budget revenues for this year in light of upcoming
toughening the sanctions that undermine the entire economy.

The sanctions, aiming to undermine the country's economy and to divert Iran from developing a nuclear program, will have a negative impact on tax collection and the activities of companies. The income expected to be received from the reduction of subsidies, will be absorbed by devaluation of the rial and inflation, which currently ranges within 19-22 percent. Therefore, it is not ruled out that Iran's budget revenues will be corrected in the future.

The budget has been made ??up on the basis of a fixed exchange rate of the Iranian national currency compared to the U.S. dollar, which now hits 12,260 rials to $ 1.

Ellada Khankishiyeva /Trend/

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