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Iran Budget Relying More on Oil; $3.4bn Budget Deficit


NCRI – A look at Iran’s upcoming fiscal budget for March 2017 to March 2018 shows the regime’s budget relying on oil revenue increasing by 11%. Iran’s last fiscal budget showed a 25% reliance on oil revenues, whereas the new budget forecasts a 36% reliance, according to the state-run Tabnak website.

The price of each oil drum was forecasted at $40 for Iran’s last fiscal year, whereas this price has been increased to $55 for the new fiscal year. According to calculations and based on statistics published in the new fiscal budget, with each dollar decreasing from the value of an oil barrel, Iran’s regime will be losing over $571 million. Considering the fact that the current price for crude oil is $6 dollars less than the value forecasted in the fiscal budget, it is clear nearly $3.5 billion in the government’s forecasted budget will never be realized.

Based on a report titled “2017 Oil Market Outlook” published by Iran’s parliament Research Center, the price forecasted by the government for the new fiscal year is higher than the price forecasted in the budget of other oil exporting countries.

For example, Kazakhstan has based its budget on a $40 barrel, Iraq $45, Canada between $36 to $43, Russia $40 and Qatar $49 for the 2017 fiscal year… Considering the fact that OPEC oil is at least $1 to $2 less than Brent oil, planning a budget based on oil selling at $55 a barrel can leave the government facing many challenges.