The Iranian government led by President Ebrahim Raeisi has announced a draft budget for calendar year starting March 21.
The outlines of the budget submitted by Raeisi to the Iranian parliament on Sunday showed that his government would continue to rely less on crude oil sales, a policy seen vital to Iran’s efforts to offset the impacts of American sanctions on the country’s economy.
Reports in the local media said that the value of the budget will be around 37,366 trillion rials (nearly $125 billion), 10% bigger than the current year budget.
The figure includes a fiscal plan of 22.314 trillion rials for state-run companies, including companies controlled by the Iran’s Oil Ministry.
That leaves the administrative government with 15,052 trillion rials (over $50 billion) in resources that it could spend or earmark to its routine expenditures including wage payments.
The budget projects the government could account on 1.2 million barrels per day (bpd) of oil exports at a price of $60 per barrel in the next calendar year.
The figure is nearly half the sales for the current budget and is in line with efforts to reduce the country’s dependence on oil.
Announcing his first annual budget since taking office in August, Raeisi reiterated that his government will avoid relying excessively on oil revenues.
He criticized previous administrations for what he called their desire to “yield the Iranian economy to the will of foreigners”, saying his government will instead seek to take advantage of the vast human and natural resources in the country to finance its budget needs.