The MP also called the annual budget bill inflationary.
Since the realization of incomes such as obtaining the foreign finances seems to be a remote possibility in the light of economic sanctions against the country it is forecast the next year budget to see a 13 billion dollar budget deficit, he noted.
“The budget has risen by 34 percent, but clearly this rise is not due to an increase in the national income,” he explained
This rise means that the administration has counted on oil revenues more than the current year, he added.
Pointing to the long-term plans, the cleric lawmaker pointed out that reliance on oil revenues should decrease year by year, but the annual budget for the next year has been drafted without taking care of this significant point.
Proposed budget to fuel rampant inflation
On the inflationary effects of the annual budget, Mesbahi-Moqadam stated that the central bank should change the foreign currency earned through oil exports into rial it will result into a higher inflation.
Mesbahi-Moqadam headed special parliamentary committee for examining the subsidy reform plan.
The subsidy reform bill approved by the parliament and confirmed by the Guardian Council envisages the gradual reduction of the subsidies of energy and food prices.
Subsidy cuts will lead to higher prices and the injection of extra liquidity will accelerate inflation to an “intolerable” level, he added.
AM/PA
END
MNA
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