With the fall in oil prices in the global markets, the chances of an increase in the Iranian regime’s budget deficit has increased in 2017.
According to the state-run Mehr news agency, Mohammad Bagher Nobakht, the head of the Iranian regime’s budget and planning organization told reporters on Wednesday that Iran’s budget could have a deficit of 38,000 billion Toman.
While reporting on the possible budget deficit, the Iranian regime’s deputies ratified a bill to provide two thousand billion Toman to the IRGC’s Quds Force and the country’s nuclear and missile programs to defy what they call the new US sanctions against Iran this August.
This year’s budget is planned to be 346 thousand billion Toman, but according to Nobakht, due to a reduction in oil prices, only 309 thousand billion Toman may be realized.
The oil price in Iran regime’s budget is set at $50 per barrel. However, currently, Iran’s oil price in the world market is about $47.
If oil prices continue to decline, Iran’s economic growth rate, which is largely dependent on oil revenues, will decrease.
Although sanctions have been lifted after the nuclear deal, the economic situation in Iran has not yet improved. The United States says the Iranian regime’s support for terrorism, missile activity and support for terrorist groups in the Middle East is a source of pressure on the regime.