$10.7b for Budgetary Decisions Next Year

The research arm of the Iranian Parliament expects the government’s general revenues to stand at 3.25 quadrillion rials ($77.47 billion) in the next fiscal year (March 2018-19).

This is while “inevitable” spending costs amounted to 2.8 quadrillion rials (66.74 billion) in the current year, IRNA reported.

The above figures indicate that the government will have no more than 450 trillion rials ($10.72 billion) at its disposal to make budgetary decisions, such as increasing the wages of civil servants and pensioners, settle its debts and spend on development projects.

In a recent report, Majlis Research Center said it believes that if the government cannot cut its spending, it will have to fund its affairs by raising taxes, increasing fuel prices, issuing bonds or devaluating the rial.

The report comes as President Hassan Rouhani is expected to submit the budget bill for the next fiscal year to the parliament today (December 10).

Government Spokesman Mohammad Baqer Nobakht said current spending should reduce by 5% by the end of the next fiscal year (March 2019).