Gov’t Predicts Oil Sales of Up to 2.3m bpd Next year
IRAN NEWS ECONOMIC DESK
TEHRAN – Vice President and Head of Plan and Budget Organization (PBO) Mohammad Baqer Nobakht says Iran is fully ready to export 4.6m bpd of crude oil in case the sanctions are lifted by the U.S. but in the budget bill, it is predicted the country to sell between 1 to 2.3m bpd next year.
Speaking in a press conference yesterday, Nobakht revealed more details on the government’s budget bill which was submitted to Majlis on Tuesday. He said that according to the predicted revenues for the current year, the government was to earn 384,000b tomans in the first eight months of the current year but the earning in the mentioned period is 50,000b tomans shy of the set target.
He went on to say that the government payment and salary this year has been 53 percent more than last year, adding that whatever revenue the government has economized has been spent for the public livelihood.
Nobakht further said that development credits have increased by 65 percent, adding that this rise of the credit shows itself in forming investment in housing which has grown by 5.4 percent. He said the government has received only 19,000b tomans of petty cash from the central bank while it had authority to get 39,000b tomans.
He refuted allegations that the government has transferred its budget deficit to the Central Bank, adding that they are baseless remarks, as the government has only used 19,000b tomans of petty cash while it was allowed to get 39,000b tomans.
Nobakht reiterated that the GDP in all groups was positive in the summer and the country experienced positive growth 0.2 percent with oil sale. He noted although due to the coronavirus pandemic some jobs were lost, the growth in the agro sector was positive 2.7 percent and in mining sector positive 4 percent, admitting that the figure was minus 3 percent in the service sector without oil.
Nobakht said that the government predicts to earn 199,000b tomans through oil sales revenues and it will be possible if the country can sell 1 to 2.3m barrels per day, adding that if the oil exports miss the mentioned target, the government has to sell bonds or shares of the companies and factories.
He reiterated that the oil sale in the budget bill is flexible from 1 to 2.3 million barrels, reiterating that the government is optimistic to regain its OPEC quota in the market and in case it does not happen, it can sell bonds and shares.
Nobakht added that for the basic goods, the government eyes the price of dollar for 4200 tomans but all depends on the forex prices in the market.
He rejected the allegations that the government intentionally lets the dollar price go up in the market to compensate its budget deficit, reiterating that the government could do it with the dollar with price of 22,500 tomans and not with the price of 11,500 tomans which is to be the base price for the dollar in the budget bill next year.
Nobakht reiterated that currently and due to the devaluation of the dollar in the market, the capital market is witnessing growth.