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Report Says Tehran Municipality Sinking in Red Ink

Report Says Tehran Municipality Sinking in Red Ink Report Says Tehran Municipality Sinking in Red Ink

The ministry of economic affairs and finance has recently released an official report clarifying that Tehran Municipality is in debt to the banking system by several trillion rials. The report however refuses to drop a clear number for the amount of debt.

Addressing a recent meeting of the city council, Mohammad Bagher Ghalibaf, the mayor of Tehran, claimed that the Ahmadinejad administration did not meet the  municipality’s budgetary needs, and neither did the Rouhani administration.

The report however rejects Ghalibaf’s remarks, saying that the government did pay the municipality nearly 19 trillion rials ($692 million) from the public budget in the first 10 months of the current fiscal year, ending March 20, 2015.

An additional 17 trillion rials ($619 million) have been entrusted with the municipality in form of loans, according to the news website BINA.

Not only is the municipality in debt to the government and the banking system due to the loans it has received, it has also failed to pay nearly 9.2 trillion rials ($335 million) in tax, the report says.

According to data collected from the Municipalities and Rural Managements Organizations of Iran and State Tax Affairs Organization and data in the Budget Law, the average payments of the Rouhani administration to the municipality hover at 20.9 trillion rials ($732 million) in the 22 months ending November 21, 2014.

Additionally, the report indicates that during the previous fiscal year, Tehran Municipality revenues from traffic violation tickets increased twenty times as much compared to the year before that. Also, an aggregate 298 billion rials ($10.8 million) from traffic violation tickets have been collected during the current fiscal year and shall be paid to the municipality after the required legal procedures are completed.

The ministry of economic affairs and finance has recently released an official report clarifying that Tehran Municipality is in debt to the banking system by several trillion rials. The report however refuses to drop a clear number for the amount of debt.

Addressing a recent meeting of the city council, Mohammad Bagher Ghalibaf, the mayor of Tehran, claimed that the Ahmadinejad administration did not meet the  municipality’s budgetary needs, and neither did the Rouhani administration.

The report however rejects Ghalibaf’s remarks, saying that the government did pay the municipality nearly 19 trillion rials ($692 million) from the public budget in the first 10 months of the current fiscal year, ending March 20, 2015.

An additional 17 trillion rials ($619 million) have been entrusted with the municipality in form of loans, according to the news website BINA.

Not only is the municipality in debt to the government and the banking system due to the loans it has received, it has also failed to pay nearly 9.2 trillion rials ($335 million) in tax, the report says.

According to data collected from the Municipalities and Rural Managements Organizations of Iran and State Tax Affairs Organization and data in the Budget Law, the average payments of the Rouhani administration to the municipality hover at 20.9 trillion rials ($732 million) in the 22 months ending November 21, 2014.

Additionally, the report indicates that during the previous fiscal year, Tehran Municipality revenues from traffic violation tickets increased twenty times as much compared to the year before that. Also, an aggregate 298 billion rials ($10.8 million) from traffic violation tickets have been collected during the current fiscal year and shall be paid to the municipality after the required legal procedures are completed.

 

Financialtribune.com