{"id":14303,"date":"2019-12-13T11:30:55","date_gmt":"2019-12-13T10:30:55","guid":{"rendered":"https:\/\/iranfreedom.org\/en\/?p=14303"},"modified":"2019-12-13T11:46:41","modified_gmt":"2019-12-13T10:46:41","slug":"irans-2020-budget-mirage-or-reality","status":"publish","type":"post","link":"https:\/\/iranfreedom.org\/en\/articles\/2019\/12\/irans-2020-budget-mirage-or-reality\/14303\/","title":{"rendered":"Iran’s 2020 Budget: Mirage or Reality?"},"content":{"rendered":"\n

Iran\u2019s 2020 Budget: Mirage or Reality?<\/p>\n\n\n\n

By Ali Latifi<\/strong><\/em><\/p>\n\n\n\n

At the bottom lines, each\ndollar is calculated at approximately 13000 tomans.<\/p>\n\n\n\n

Earlier this week, Iranian regime President Hassan Rouhani<\/a> passed a 2,000 trillion toman budget (around $153.8 billion) for Iran\u2019s 2020 fiscal\u00a0 year <\/strong>to the regime\u2019s Majlis (parliament) for approval. Rouhani\u2019s budget has increased by more than 25%, despite a sharp drop in oil <\/a>sales compared to 2019.<\/p>\n\n\n\n

The\ngovernment\u2019s budget is set at 484 trillion tomans (around $37.2 billion).<\/p>\n\n\n\n

This figure was about 440 trillion tomans ($33.8 billion) in the current fiscal\nyear\u2019s budget and later reduced to 386 trillion tomans (around $29.7 billion)\ndue to the decline in oil exports.<\/p>\n\n\n\n

However, Rouhani does not\nelaborate on the funding sources for Iran\u2019s 2020 fiscal year budget<\/strong> and\nhas invested on a mirage.<\/p>\n\n\n\n

One of Rouhani\u2019s budget sources that\nhe counts on is daily exports of 500,000 barrels of oil and revenue equivalent\nto 60 trillion tomans.<\/p>\n\n\n\n

Yet according to statistics\nprovided by the Kepler oil tanker tracking company, Iran exported only 213,000\nbarrels a day last month. Of course, as sanctions\ntighten, the regime\u2019s oil sales appear to be even lower.<\/p>\n\n\n\n

Other resources overlooked\nby Rouhani, such as tax and customs revenues, are an illusion and Mirage<\/strong>.\nDue to the fact that the regime\u2019s largest economic entities are affiliated with\nKhamenei and the Revolutionary Guards (IRGC), controlling all the country\u2019s\ncapital, are exempted from paying taxes.<\/p>\n\n\n\n

These institutions are\ncurrently reluctant to reduce their astronomical revenues, deduct the costs of\ndomestic repression and warmongering in the region, and will not pay taxes.<\/p>\n\n\n\n

The regime\u2019s official IRNA\nnews agency reported on December 10 that the foundations and institutions under\nthe Islamic Republic supreme leader\u2019s supervision pay only 0.008 percent of the\ncountry\u2019s total taxes despite controlling ten percent of the Iranian economy.<\/p>\n\n\n\n

According to IRNA, the private\nsector should cover 27 percent of total tax revenues in next year\u2019s budget, while\ntheir partnership is less than 15 percent of the total Iranian economy.<\/p>\n\n\n\n

The expected share for\nstate-owned companies is also less than 6.5 percent, while these companies hold\nmore than 70 percent of the country\u2019s economy.<\/p>\n\n\n\n

Due to the lack of\ninformation and transparency in the Iranian economy, government officials and economy\nexperts are expressing very different figures on tax evasion in the country. <\/p>\n\n\n\n

On the other hand, due to\nthe decline in imports and exports, customs revenue has also fallen sharply. As\na result, much of Rouhani\u2019s resources for Iran\u2019s 2020 fiscal year budget<\/strong>\nare absurd.<\/p>\n\n\n\n

\u201cPoint-to-point inflation has jumped from 52 percent to 27 percent, which is not clear where it came from and why people don\u2019t feel this way,\u201d Rouhani said in a speech to the Majlis. This is so nonsensical that even Majlis members protested<\/a> and called him a liar.<\/p>\n\n\n\n

Of course, based on this\nscenario, Rouhani is planning to not raise wages next year. At the same\nmeeting, Rouhani said, \u201cWe will increase staff salaries by 15 percent next\nyear\u201d, while the Central Bank has announced 41 percent inflation. This\nmeans that the fixed employees\u2019 purchasing power drops to less than a half.\nAlso, as gas price tripled and the poverty line being set at eight million\ntomans ($615.38) per month; a 15 percent increasing in salaries is another\nplundering from the pockets of the society\u2019s lower classes.<\/p>\n\n\n\n

Rouhani pointed to the\nimaginative growth that will supposedly result in progress next year in the\nfields agriculture, medical treatment, development and so forth.<\/p>\n\n\n\n

Meanwhile, the\nInternational Monetary Fund (IMF) has announced Iran\u2019s economic growth for the\nnext year will be negative 9%.<\/p>\n\n\n\n

According to a proverb in\nFarsi, a liar has little memory. That is, a liar has poor memory and after a\nshort period he\/she forgets what he\/she said before.<\/p>\n\n\n\n

So now, Rouhani forgets\nthat he himself acknowledged a deficit of two-thirds in Iran\u2019s 2020 fiscal\nyear budget<\/strong>.<\/p>\n\n\n\n

\u201cWe have\nan annual budget of about 450 trillion tomans (around $34.6 billion) and we\nexpect from taxes we can get next year is 150 trillion tomans (around $11.5 billion),\u201d\nRouhani said in a recent speech in Kerman, south-central Iran. \u201cAlthough our\nMinistry of Economy says it is 140 trillion tomans (around $10.8 billion).\nSo, what happens to the rest if we provide 150\ntrillion tomans from that 450 trillion? Where should we get the remaining 300 trillion tomans ($23.1 billion)?\u201d<\/p>\n\n\n\n

Rouhani has always been, and still is, anxious about oil\nrevenues. He told the state-run Mashregh website: \u201cIf we were in a normal situation, we\nwould sell $60 billion a year in oil and if we exchange it to tomans we\u2019ll have\n600 trillion tomans. We could easily\nget two times more than what we needed. \u201c<\/p>\n\n\n\n

Consequently, in a state of crises and economic suffocation, the mirage budget bill is nothing but deceptive propaganda and in practice there is only continuous poverty for the people and enormous costs of repression. <\/p>\n\n\n\n

More about Hssan Rouhani <\/p>\n\n\n\n

\nhttps:\/\/iranfreedom.org\/en\/2019\/09\/24\/hassan-rouhani-crimes-iran-mek-1988massacre\/\n<\/div><\/figure>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"

Iran\u2019s 2020 Budget: Mirage or Reality? By Ali Latifi At the bottom lines, each dollar is calculated at approximately 13000 tomans. Earlier this week, Iranian regime President Hassan Rouhani passed a 2,000 trillion toman budget (around $153.8 billion) for Iran\u2019s 2020 fiscal\u00a0 year to the regime\u2019s Majlis (parliament) for approval. Rouhani\u2019s budget has increased by […]<\/p>\n","protected":false},"author":4,"featured_media":14304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"pgc_sgb_lightbox_settings":"","footnotes":""},"categories":[17],"tags":[529,35,419],"class_list":["post-14303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-hassan-rouhani","tag-iran","tag-iran-protests-2019"],"acf":[],"yoast_head":"\nIran's 2020 Budget: Mirage or Reality? - Iran Freedom<\/title>\n<meta name=\"description\" content=\"Iran's 2020 Budget:Hassan Rouhani passed a 2,000 trillion toman budget (around $153.8 billion) for Iran's 2020 fiscal year to the parliament for approval.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/iranfreedom.org\/en\/articles\/2019\/12\/irans-2020-budget-mirage-or-reality\/14303\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iran's 2020 Budget: Mirage or Reality? 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