Iran’s Treasury: Government Faces Severe Budget and Revenue Deficit

The latest report from Iran’s Treasury General Department shows that the government is facing a severe budget and revenue deficit.

According to the report, only one-third of the current fiscal year’s budget has been realized, and Iran’s oil revenue share has been only 9 percent; this is while the current year’s budget had projected daily oil exports at around 2.3 million barrels per day.

Meanwhile, Iran’s Court of Accounts has also announced in a report that the government has covered part of this budget deficit from the Treasury’s salary account and another part from resources under Article 125 of the General Accounting Law.

Economic observers describe the solutions of Ibrahim Raisi’s government and the Islamic Consultative Assembly for controlling inflation and compensating for the budget deficit as time-consuming and ineffective.

A number of experts and economists have previously warned about Iran’s economic situation.

Masoud Nili, an economist and professor at Sharif University of Technology, warned this past summer that Iran is “on the brink of severe, uncontrollable inflationary conditions.” Similarly, Mohammad Reza Farzin, a faculty member at Allameh Tabatabai University, described Iran’s conditions as “very difficult and concerning,” and Gholamreza Mesbahi Moghadam reported a “400 trillion toman budget deficit.”

Source: Voice of America