Iran to Cut off Budget Dependence on Oil Incomes

Iranian Vice-President and Head of the Management and Planning Organization Mohammad Baqer Nobakht said on Sunday that his country is determined to draft its new budget bill with zero-dependence on oil revenues in a bid to disappoint the US with its maximum pressure campaign against Tehran.

TEHRAN TIMES- “Given the difficult times of sanctions, we will be losing a considerable amount of budget resources; therefore, it is necessary to make sure that the reforms in the budget structure for the next year will be able to cut down direct dependency on oil revenues to zero,” Nobakht said, at the first session of drawing up the budget structure for the next Iranian fiscal year (starting on March 20, 2020).
He went on to add that even under normal circumstances, the country still needed to reduce its dependency on oil revenues.
“For the first time, we have taken an important step toward reforming the country’s budget structure,” he stressed.
Following the US’ unilateral withdrawal from the Iran nuclear deal last year, US President Donald Trump's administration went ahead with re-imposing sanction on Iran, targeting the country’s energy and banking sectors, and stepping up efforts to drive Iran’s oil revenues to zero.
In April, the White House announced its decision not to renew waivers that allow eight countries, including China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey, to buy Iranian oil without facing US sanctions.
Meanwhile, Iran says with or without waivers, the country’s oil exports will not fall to zero under any circumstances. At the same time, the country is making efforts to reduce its reliance on oil revenues and instead turn its focus on non-oil production and exports.
Last month, Iranian Parliament Speaker Ali Larijani underlined the US failure to cut to zero his country's oil exports, saying that Washington has been defeated by Iran's smart moves.

Aug 13, 2019