TEHRAN – President Mahmoud Ahmadinejad presented the administration’s draft of the national budget bill for Iranian calendar year 1391, which starts on March 20, to the Majlis on Wednesday. 

 

The proposed national budget amounts to about 5.1 quadrillion rials (approximately $416 billion). The national budget for the previous year had envisaged about 5.39 quadrillion rials of expenditures. 

 

Although there is a small decrease in the draft national budget compared to the national budget of the previous Iranian calendar year, the defense budget shows an increase of 127 percent.    

 

The administration’s draft national budget plan also allocates more money for development, scientific research, and health projects.  

 

The funding for running the government has been decreased by 5.6 percent and the government’s tax revenues have been envisaged to rise by 20 percent.  

 

Reportedly, next year’s national budget is based on an oil price of $85 per barrel and the average value of the U.S. dollar for the fiscal year has been projected to be 11,500 rials.   

 

The MPs of the Majlis must first approve the generalities of the draft national budget bill, and then they will commence work on the examination of the details of the articles in parliamentary committees in a process that may continue for a few weeks.