ILNA: Iran’s Vice President for Planning and Strategic Supervision Mohammad Baqer Nobakht said that the country will not face any budget deficit in the current Iranian calendar year(to end March 20,2015).
“Budget deficit happens when the revenues are not provided but the government needs to spend the money. In our case, the oil revenues projected in the budget plan have not been materialized, but the government is not going to spend the money, so it’s rather not materialization of revenues rather than budget deficit, ” the official explained.
“Even if the oil prices fall to $۳۵ per barrel, we can handle the situation, ” he said.
“Nigeria has based its budget on $۷۳ per barrel, and Saudi Arabia reportedly settled for $۸۰ per barrels, so Iran’s $۷۲ per barrel seems to be realistic, ” Nobakht said, adding that some analysts believe that the price will bounce back to $۸۰ per barrel.
However, the official went on to say that in general it’s safer to base the budget plan on lower prices.
Falling global oil prices forced Iran’s government to decrease the oil price figure in the proposed budget bill for the next Iranian calendar year to $۷۲ per barrel from the current figure of $۱۰۰.
The Iranian President Hassan Rouhani also predicted that Iran’s total oil revenues will be ۳۰ percent less than expected.
Experts believe that due to the continuing fall of oil prices in global markets, a budget deficit in the next calendar year is also inevitable.