DUBAI: Iran faces a shortfall of one-third in this year’s budget due to lower than expected revenues and spending plans will be revised next month, senior government officials said.
The country’s oil exports, its major source of revenues, have halved since 2011 as a result of sanctions on its oil, shipping and banking sectors imposed by Western nations over Iran’s disputed nuclear programme.
Iranian President Hassan Rouhani, who took office this month, has pledged to improve the economy by cutting inflation of around 40 percent, repairing Iran’s oil sector and easing sanctions.
About one-third of the approximately $68bn budget for March 2013-March 2014 will not be realised, said Vice-President Eshaq Jahangiri, citing figures provided by the administration of former President Mahmoud Ahmadinejad.
Jahangiri was quoted by the ISNA news agency as saying yesterday that officials told him that “more than one-third of the budget is unrealistic” and it must be cut to about $45bn.