Iran’s proposed state budget for the coming year points to a 3.7 per cent decline in revenues in rial terms, as US sanctions continue to bite.
The budget bill — proposed by president Hassan Rouhani on Tuesday, but yet to be approved by parliament — forecasts 2,086tn rials in revenues for the next Iranian fiscal year — down from the 2,161tn rials forecast for mid-March when the financial year ends.
“This budget is drafted based on the impact of sanctions while the economy will definitely shrink next year,” said one economic analyst. “The government has not only taken the current sanctions into consideration but is preparing for tougher sanctions to come.”
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