The Iranian government is preparing the next solar year budget to submit to the Parliament but reportedly with significant difference from current year budget in details.
According to the budget law, Iran is expected to sell USD 81 billion oil, condensate and gas during current solar year which shares 17.5% of USD 461 billion budget.
The current state budget relies USD 53 billion worth income on petroleum but according to Iranian president's deputy on budget issues Mr Rahim Mambini the administration wants to decrease budgets' dependence on oil by 30% to 40% in next year.
Earlier, Mr Gholam Reza Mesbahi Moghaddam head of budget commission in the Parliament said that the government aimed to consider 1 million barrels drop in oil export in next year budget bill. Some 1 million barrels per day decrease in oil export means losing USD 40 billion oil incomes in a year.
According to current state budget, some 23% of oil export revenues should be transferred to the National Development Fund and this figure can be decrease in next year budget and allocates to government budget.
Iranian budget is written based on national currency, rial. There is above double difference in value between USD rates in budget law and Iran's Forex Center. Iranian government can propose USD rate 2 times more than current value as well. Then, governments' incomes in national currency will increase to avoid shrink in budget volume.
But regarding this fact that International Monetary Fund predicted an economic contraction of 0.9% in Iran for this year and also because of 25.2% inflation rate, increasing taxes would damage industry, service and agriculture sectors and cause higher inflation and unemployment rates. However, it can manage or review the taxation sector.
According to the current yearly budget, tax income shares 7% of Iran's GDP worth USD 27.7 billion. One of the problems in Iran's taxation sector is the existence of unaccounted economic activities which share 21% of the Iranian economy.
Meanwhile 60% of the economic sectors in Iran do not pay any taxes according the Iranian Strategic Research Centre Expediency Council's latest report written by Iran's former deputy Oil Minister during Mahmoud Ahmadinejad's first presidency Mr Akbar Torkan.
And finally in budget law, USD 85 is considered for a barrel of crude, but this figure can increase to at least above USD 90 because according to IEA, OPEC and other reliable sources' prediction, oil prices wouldn't decrease in 2013. However, the Iranian government will lose $40 billion oil revenues next year and absolutely will face with significant economic damage finally.
