Budget Without Oil May Impair Stock Market Performance

With US sanctions on the oil industry taking a toll on the economy, including the national budget, the government has again pledged to reduce dependency on oil exports to zero and prepare the next budget (March 2020-21) without oil revenues. 
The Persian-language economic newspaper Donya-e-Eqtesad, a sister publication of the Financial Tribune, has looked into the future prospects of the stock market in light of “budget without oil” plan. 
To partially compensate for falling oil revenues, the government plans to remove tax exemption on raw material exports and low value added products, divest its surplus property, redefine the price of energy carriers and reform the costly and controversial subsidy regime. 
The head of Plan and Budget Organization Mohammad Baqer Nobakht has said that current expenditures from oil revenues will be cut to zero in the next budget, reiterating the government goal to diversify sources of income in the next budget.