Economy, Domestic Economy

Alternative Budget Scheme

Alternative Budget Scheme Alternative Budget Scheme

Government spokesman Mohammad Bagher Nobakht said on Tuesday that the government has drafted an alternative budget scheme for the current Iranian year (started March 21) in the event of  a possible nuclear deal with the P5+1 group, which is expected to open new financial resources.

“The government has come up with an alternative budget scheme to make better use of resources it is going to receive as a result of possible nuclear deal [expected by the end of June],” he was quoted by IRNA as saying.

 After months of negotiations Iran and the P5+1 reached a framework for an agreement to end a decade-long standoff over Iran’s nuclear energy program. According to the plan, Iran is to scale back the number of its installed centrifuges, in return for the United States and the European Union lifting the current sanctions regime.

“The economy grew by 3.8% during the nine months of the past year and we are trying to achieve a growth of 4 to 5 percent in the current year,” Nobakht added, citing the statistics released by the Central Bank of Iran (CBI).

Pointing to the government’s efforts in lowering the inflation rate, he also said: “We are trying to lower the inflation rate below the 14.8% that was recorded last year.”

On the issue of bank interest rates, Nobakht said: “The Money and Credit Council is responsible to determine the interest rates. But, there is a meaningful correlation between inflation and interest rates.” He added that the banks should levy the interest rates in such a way that it is in harmony with inflation.