The budget ran into a deficit in the first three months of the fiscal year, further pressuring the government on its fiscal policy and adding to the recent economic woes as oil prices continue to tumble.
The government had a budget deficit of more than 180 trillion rials ($6.7 billion based on official exchange rate) in spring, according to a report released by the Central Bank of Iran (CBI) on Wednesday.
The figure shows a 58% rise compared to the same period last year.
The government earned 160 trillion rials ($5.9 billion) in revenues in the period. Meanwhile, government spending surpassed 332 trillion rials ($12.3 billion), the report said. Total revenue showed an increase of 26% and total spending showed an increase of 37%.
Given falling oil prices in the international markets, it remains to be seen if the Iranian government would be able to control the deficit during the remaining months of the year (ending March 20, 2015). The price of a barrel of crude oil has plunged by over 25 percent to below $80 from June’s $115.
The Iranian government relies heavily on oil to pay for its expenses. Revenues from oil exports constitute around 60% of Iran’s budget income.
Unemployment Data
The report by the central bank also shows that only 23.3 million out of Iran’s 77.8 million total population were employed in spring. That means two thirds of the country’s population were out of job.
Nearly 72.5% of Iranian population lives in cities and the rest (27.5%) in rural areas, according to the statistics.
The unemployment rate stood at 10.7%, with the unemployment rate among the women 10% higher than that of the men.
Urban unemployment was nearly 4.5% higher than the rural unemployment which was about 7.5%.
The report also shows that the unemployment rate varied according to different age groups. Unemployment among the youths aged between 15 and 29 was about 22%, while it was 24% among the people aged 15-24.
Trade Balance
According to the data, Iran’s exports of non-oil goods and services reached $23 billion in value while its imports stood at $14.6 billion, recording a trade balance of $8.5 billion.
Iran’s current account balance reached $7 billion in spring and its foreign debt during the period touched $6.4 billion, the report added.
The CBI report also shows that the US dollar was on average traded at 25,510 rials in an official exchange rate in the first quarter.
