Economy, Domestic Economy

Development Budget Rises 20%

Development Budget Rises 20%Development Budget Rises 20%

The share allocated to development projects in the next years' budget bill stands at 500 trillion rials ($18.6 billion based on official rate), which shows a 20-percent rise compared with that of the current year, Mohammad Bagher Nobakht, the vice president for planning and strategic supervision said on Monday.

The share of development projects in the current year is about 410 trillion rials ($15.2 billion), of which 250 trillion rials is assigned and the rest 300 trillion rials will be earmarked by the yearend (March 21, 2015), Nobakht said.

The vice president noted that completing the present 470 unfinished development projects is among the major targets of the government to tackle recession and curb inflation and eventually well obtain economic prosperity.

The budget bill for the next fiscal year (March 2015-March 2016), which has been prepared by the Office for Planning and Strategic Supervision is in its final phase. The bill has been prepared with a pragmatic view, and its focus is on the development projects.

The bill will be submitted to the parliament for approval in the next few weeks.

While preparing the proposed draft budget, the budget planners this year have considered oil price fluctuations. The recent decline in oil prices has plagued the Iranian government, forcing administration officials to squeeze spending in the ending months of the year, ending on March 20.

Officials say the next year's budget is more contractionary than that of the current year and therefore is unlikely to face deficit.