Jahangiri Announces Withdrawal of Another ‘One Billion Dollars’ from National Development Fund

Iran’s First Vice President announced on Monday, June 27, that with the approval of the Leader of the Islamic Republic, one billion dollars will be withdrawn from the National Development Fund to “stabilize existing employment and create new jobs.”

Ismail Jahangiri stated that it was approved in a session of the Supreme Economic Council with the presence of the heads of the three branches that one billion dollars in credit from the National Fund be allocated for “stabilizing existing employment and creating new jobs,” and Ayatollah Ali Khamenei has also approved this resolution.

The Leader of the Islamic Republic had previously issued orders several times to withdraw from the National Development Fund to finance military budgets, broadcasting budgets, combating dust storms, and other expenditures.

Ayatollah Khamenei, meanwhile, had rejected the President’s request to withdraw from the National Development Fund for the purpose of compensating for flood damages.

The provision of these budgets from the National Development Fund comes at a time when its statute states that this fund is “established with the aim of converting a portion of revenues from the sale of oil, gas, and natural gas liquids and petroleum products into sustainable wealth, productive assets, and economically generative capital, as well as preserving the share of future generations from oil, gas, and petroleum product resources.”

According to the Sixth Development Plan law, at least 34 percent of revenues from oil sales should be deposited into the National Development Fund. However, during consideration of the 1398 (2019-2020) budget bill, Ali Larijani, the Speaker of Parliament, announced that the Leader of the Islamic Republic had ordered the National Development Fund’s share of oil revenues be reduced to 20 percent.

Meanwhile, the Research Center of the Iranian Parliament has predicted that due to declining oil sales and withdrawals from the National Development Fund, including for military expenditures, no money will enter this fund in the year 1398.

Jahangiri also said on Monday that it is possible that American sanctions in the 1398 budget “may create limitations. However, the government is determined to navigate this period well.”

Previously, Mohammad Baqer Nobakht, head of the Budget and Planning Organization, had spoken of a reduction in government revenues to one-third due to the return of American sanctions.

The United States implemented oil sanctions against Iran in November of last year, and only eight countries were permitted to continue limited oil purchases from Iran for six months. Iran’s daily exports during this period fell from 2.5 million barrels to one million barrels.

However, the United States stopped the exemptions for Iran’s oil customers about three weeks ago, and according to reports from oil tanker tracking companies, Iran’s exports have fallen to half a million barrels.

Source: Radio Farda