Raisi Government Seeks to ‘Prevent Uncontrolled Liquidity Growth’ in 2022 Budget; US Dollar Reaches 30,750 Tomans
The official news agency of the Islamic Republic of Iran, IRNA, says the government of Ibrahim Raisi is seeking to prevent “uncontrolled growth of the country’s liquidity and monetary base” in the 2022 budget to achieve a “significant” reduction in inflation.
According to IRNA, the 2022 budget bill was “reportedly” approved by the government on Wednesday, December 8, and is scheduled to be presented to the Islamic Consultative Assembly next week.
On December 15, hours after Ibrahim Raisi promised to address Iran’s economic problems, the price of the US dollar in the market crossed the 31,000 tomans threshold.
According to the latest reports from the Bonbast website, which announces exchange rates in Iran, on Thursday the buying rate for the US dollar was announced at 30,650 tomans and the selling rate at 30,750 tomans.
According to ISNA, Ibrahim Raisi spoke on Thursday about the allocation of credits and authorities to governors in the 2022 budget, adding that revenues from the sale of surplus government property in each province will be spent in that same province.
Masoud Mirkazemi, head of Iran’s Planning and Budget Organization, announced on Tuesday, December 2, that the 2022 budget for the country has been closed without deficit and based on decentralization, and according to him, this policy will result in a significant increase in the authorities of governors.
The IRNA news agency on Thursday referred to statements made a few days earlier by Ehsan Khandouzi, Minister of Economy and Finance, who cited “controlling the growth of government expenditures to one-third of expected inflation, smart identification of tax evasion, and increasing revenues from the sale of government property” as among the most important programs of the thirteenth government.
Trade News also reported on December 16, citing Masoud Mirkazemi, head of the Planning and Budget Organization of the country, stating that “the government is considering gradual salary increases,” writing: “In the 2022 budget, instead of increasing salaries, the government will increase purchasing power.”
The head of the economic commission of the Islamic Consultative Assembly had said on October 18 that members of this commission had met with deputies of the Planning and Budget Organization, and the 2022 budget, after restructuring and changing the budget content based on the opinion of the Supreme Leader of the Islamic Republic, would be presented to the parliament.
According to a report by the General Treasury of Iran, the government faces a severe budget deficit and revenue shortage.
However, the “Open Database of Iran” reported in an investigative report that the office of Ayatollah Khamenei’s representative at universities received approximately double the budgeted amount for 2021.
Double budget allocation to some institutions under the control of the Supreme Leader of the Islamic Republic comes as the spokesperson of the Budget and Planning Commission of the Islamic Consultative Assembly announced on October 4 that the resources consumed by the 2021 budget had been exhausted.
This is despite an inflation rate of over 45 percent, and unofficial reports suggest that the Raisi government “allocated a budget for the implementation of the law supporting the rights of people with disabilities in the 2022 budget bill lower than the current year’s budget,” and the budget of the Welfare Organization will also have only a “10 percent increase.”
Source: Voice of America
