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Saturday, November 3, 2012

Iran Facing Huge Budget Deficit

The chairman of the Budget Committee of Majlis, the Iranian parliament, said today in Tehran that the country is facing a budget deficit of 740 trillion rials, or more than $60 billion in official exchange rate. Chairman Mesbah Moqaddam added the current government budget is 1,640 trillion rials, or $133 billion, making the deficit a whopping 45 percent of the total budget. (Aftab Yazd, 3 November)

6 comments:

  1. If you look at their actual behaviour you can not say that they had any other plan than to bankrupt the country; nuclear program was a tool for them to bankrupt the country - not to build it up

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  2. Thank Ahmadinejad, you imbecile.

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  3. How was Iran deluding itself into thinking it had that large of a budget?!

    The country collects virtually no taxes and its only source of revenue is oil sales.

    They thought they had the tax system of a western country!

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  4. That would be even more than California's deficit of $16 billion but pales in comparison to U.S. debt.

    Interesting to see how the Iranians tackle it.

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  5. Of course this is not a debt, it’s a budget deficit; and it can be compared to other countries in percentage terms. What the chairman of the budget committee said was really shocking, a deficit of 45% of the total budget. What they were thinking, knowing that the sanctions were coming and their main source of revenue, the oil, was to get hit hard, yet they produced this budget like nothing was happening around them. This is more than bad accounting practice, it’s delusional. I agree with Mark that we need to see how they come out of this without causing major hardship for the people.

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  6. But the regime doesn't care for the Iranian people except if you're Palestinian, Lebanese,Syrian or Sudanese,etc etc.
    The country is utterly bankrupt both in financial terms and social political terms.

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