News & Reports News Year 2011 May , 2011 Iran Parliament amends budget bill

Iran Parliament amends budget bill

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Iranian lawmakers have amended part of the budget bill for the current Iranian calendar year which does not allow the government to raise prices by more than 20 percent.

The amendment, approved by the Parliament (Majlis) on Saturday, means the government's revenue from removing subsidies on food and energy will reduce from IRR 620 trillion (USD 59 billion) to IRR 30 trillion (USD 28 billion), IRNA reported.

Lawmakers argued that the amendment would prevent a hike in prices as a result of the government's subsidy reform plan.

The plan aims to gradually remove subsidies on gasoline, natural gas, electricity, and food over a five-year period and instead give families cash payments as compensation.

However, lawmakers said the amendment was necessary as the government has backtracked from the original plan and aims to remove the subsidies over a three-year period.

The draft of the USD 513 billion budget bill was approved by Parliament on Tuesday.

The budget is based on an oil price of USD 80 per barrel. The value of the US dollar is estimated at IRR 10,500 in the bill.