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IRAN TO CUT DEVELOPMENT BUDGET TO ADDRESS DEFICIT.
TEHRAN, Jan 1 Asia Pulse - An Iranian official has said the government faces a Rls 20 trillion ($US2.409 billion) deficit in the current Iranian year, which started on March 20).
Head of Management and Plan Organization`s (MPO) Economic Bureau Mohammad Kord-Bache told IRNA that to cover the shortage, in addition to garnering saving of up to 4.1 per cent in current expenditure, the government will also have to cut the development budget.
Given that a major portion of the current expenditure are salaries - which are hard to cut - it will development funding to get the axe, he added.
Meanwhile, Iran`s budget bill for the next calendar year of 1383 (to start March 20, 2004) stands at 1,069,532 billion rials, registering a growth of 10.5 percent compared to that of 1382, said President Mohammad Khatami here last week.
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