News ID: 254099
Published: 0245 GMT June 11, 2019

Iran plans deep cuts in reliance on oil income

Iran plans deep cuts in reliance on oil income

Iranian Vice President Mohammad Baqer Nobakht said a new scheme to reduce the country’s reliance on oil revenues is expected to restrict the dependence on petrodollars to only 10 percent.

Nobakht, who is also head of Iran’s Plan and Budget Organization, said the major scheme to lower the share of oil income in the budget has four main axes and 23 plans that would result in sustainable incomes for the administration, saving money, bringing economic stability and a stronger budget, reported Tasnim News Agency.

Eleven of the 23 plans will be implemented by March 2020, he added.

Pointing to oscillations in the price of oil and a consequent impact on income and spending, Nobakht said a substitute plan for the budget will reduce the country’s reliance on oil income to only 10 percent.

In comments in December 2018, Iranian First Vice President Es’haq Jahangiri said it was unlikely that the oil revenues’ share in the budget for the next Iranian fiscal year would be more than 25 percent.

Iran’s efforts to cut reliance on oil began long before the US administration announced plans in 2018 to drive the Islamic Republic’s oil exports down to zero.

Tensions between Iran and the US have escalated since US President Donald Trump walked away from the 2015 nuclear deal between Iran and world powers in May 2018 and reimposed sanctions on Iran.

The White House has announced plans to get as many countries as possible down to zero Iranian oil imports and launch a campaign of “maximum economic and diplomatic pressure” on Iran.

 

   
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