Iran’s budget bill for next year predicts tax revenue to reach USD26.153B


(MENAFN) In the proposed budget bill for the upcoming Iranian calendar year 1404, tax revenues are projected to reach 17 quadrillion rials (approximately USD26.153 billion), representing a substantial increase of 39 percent compared to the current year's budget estimates. This ambitious forecast reflects the government's aim to bolster its financial standing amid ongoing economic challenges. The Iranian parliament, known as the Majlis, approved the general outlines of this national budget bill on October 29, marking a crucial step in the budgetary process for the nation.

The voting session in the Majlis saw support from 146 out of 249 present members, leading to the successful approval of the bill's generalities. This budget, submitted by President Masoud Pezeshkian on October 22, amounts to roughly 64.76 quadrillion rials (around USD98.5 billion, based on the free market rate of 650,000 rials). The allocation of public resources within this proposed budget is estimated at 59.876 quadrillion rials (approximately USD92.116 billion), underscoring the government's commitment to addressing various fiscal demands.

Among the key revenue sources identified in the budget is income derived from oil, gas, and oil products, which is forecasted to reach 21.07 quadrillion rials (approximately USD32.415 billion), reflecting a 32 percent growth over the previous year's figures. To support this revenue generation, crude oil production is anticipated to average 3.75 million barrels per day, with an expected sales price of €57.5 per barrel. These projections highlight the critical role of the energy sector in Iran's economy, particularly as the country seeks to enhance its overall financial performance.

Notably, this budget bill marks the second such proposal to emerge since the implementation of Iran's seventh national development plan (2023-2027). In presenting the budget, President Pezeshkian emphasized that reducing inflation is a prioritized goal, a sentiment echoed by various stakeholders involved in its formulation. The president highlighted that this budget was crafted through extensive consultations with leading experts and lawmakers, ensuring a focus on precise adherence to the legal frameworks established in the seventh development plan, which serves as a guiding document for the nation’s economic strategy.

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