News / Economy

Iran's 2014 Budget Taking Shape

FILE - Iranian President Hassan Rouhani sits while attending the 27th International Islamic Unity Conference in Tehran, Iran, Jan. 17, 2014.FILE - Iranian President Hassan Rouhani sits while attending the 27th International Islamic Unity Conference in Tehran, Iran, Jan. 17, 2014.
x
FILE - Iranian President Hassan Rouhani sits while attending the 27th International Islamic Unity Conference in Tehran, Iran, Jan. 17, 2014.
FILE - Iranian President Hassan Rouhani sits while attending the 27th International Islamic Unity Conference in Tehran, Iran, Jan. 17, 2014.
As the Iranian parliament begins to discuss the 2014 budget, which takes March 21, some challenges are beginning to emerge in a country with an inflation rate of 44 percent, negative economic growth and high unemployment. 

In particular, subsidy reform presents lawmakers with a major challenge. 

Iran has doled out subsidies to the tune of about $100 billion per year to the population to help pay for petroleum, medical supplies and basic foodstuffs. They were first used during the Iran-Iraq war, but since the 1990s, three leaders have tried to roll them back.

Last fall, the parliament approved a plan to drop 22 million Iranians--the top 30 percent of earners--from the subsidy system.

Military spending will also be an issue.

On Saturday, Iran’s Parliament Speaker Ali Larijani was quoted by the semi-official  Fars news agency saying Iran should boost defense spending in response to what he called “sabre-rattling” by U.S. Secretary of State John Kerry.

Kerry said the U.S. reserves the right for military action against Iran should it violate an interim nuclear deal reached in November. 

Gholamreza Kateb, head of the Budget and Auditing Committee of the Iranian parliament, said the goals of new budget are to reduce the gap between saving and investment, to reduce dependency of the budget on oil revenue, to reduce the rate of unemployment and to increase economic growth.

The Budget and Auditing Committee predicts that economic growth next year will reach about 3 percent, and investments will increase by about 2 percent.

President Hassan Rowhani said bringing down inflation and boosting growth were his economic priorities when he presented his first budget to the legislative body last December.

The budget is based on oil selling at $100 a barrel.

You May Like

Is Air Travel Safe?

Aviation expert says despite tragic losses of Malaysian Airlines flights 370 and 17, industry experienced lowest fatality rate in recorded history last year More

Multimedia 100 Days Later, Nigerian Girls Still Held

Activists holding rallies in Nigeria and several other countries to mark 100th day of captivity for more than 200 schoolgirls being held by Boko Haram More

Chocolate Too Bitter? Swap Sugar for Mushrooms

US food technology company develops fermentation process using mushrooms to reduce bitterness in cocoa beans, believes it will cut sugar content in candy More

This forum has been closed.
Comment Sorting
Comments
     
by: Kiumars from: Iran
January 29, 2014 5:44 PM
Iran must spend 50% of its budget on military; like the USA

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Carriers Suspend Travel to Israeli
X
Carolyn Presutti
July 23, 2014 1:21 AM
The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video US Carriers Suspend Travel to Israel

The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video NASA Focuses on Earth-Like Planets

For decades, looking for life elsewhere in the universe meant listening for signals that could be from distant civilizations. But recent breakthroughs in space technology refocused some of that effort toward finding planets that may harbor life, even in its primitive form. VOA’s George Putic reports on a recent panel discussion at NASA’s headquarters, in Washington.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.