The Iranian economy will not face a budget deficit despite the steady decline in global oil prices, Ali Tayebnia, the minister of economic affairs and finance said. “We expect no budget deficit stemming from the oil price slump… if oil prices keep falling, the government will definitely make plans to head off a budget deficit problem in the next Iranian calendar year (starting March 21, 2015),” Tayebnia asserted. An increase in oil production from North American shale deposits means market dynamics are skewed toward the supply side, pushing oil prices to historic lows. According to Tayebnia, the National Development Fund of Iran is structured in such a way as to be protected from oil price fluctuations and, thus, can be a source of stability for the Iranian economy.
