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The Iranian regime Central Bank admits the government is facing severe budget deficits

The Iranian regime’s Central Bank
The Iranian regime’s Central Bank

Analysis by PMOI/MEK

 

Nov. 30, 2018 - According to a report by the Iranian regime’s Central Bank, Iran’s budget deficit in the first half of the current Persian year (March-September) has increased by 105% compared to the previous year.

In this regard, the state-run Mehr news agency reported: “The economic statistics of the first half of the year, reported by the Central Bank, show that while the new U.S. sanctions had not yet been fully implemented and the income from the export of oil and condensates was more than expected, the government’s budget deficit was more than 370 trillion rials.”

Mehr further writes: “The decline of other government incomes, including tax income, has caused this deficit. Therefore, thinking that next year, economic conditions will be better than this year is unrealistic.”

Economy expert describes the methods employed by the government of Hassan Rouhani to compensate the budget deficit as extremely inflationary.

According to Mehr, previous years have shown that the administration of Rouhani will resort to borrowing from the Central Bank to make up for the government’s budget deficit.

Moreover, the expert says that in addition to loans, the government of Rouhani will be forced to issue bonds and pour more cash into the free market, which creates the ground for increasing inflation.

Regarding the monetary and financial crisis of the Iranian regime, one economic expert said that the government is saving the banking sector at the expense of the people.

According to figures published by the Central Bank, in October, the average price of one square meter of residential property in Tehran was 91% more expensive compared to the previous year. These figures show that the number of residential contracts in October had decreased by 53.6% year over year and by 26.7% in comparison to the previous month.

In this regard, the state-run ISNA news agency reported on the deteriorating economic conditions for the construction mechanic workers. “The president of the Union of Construction Mechanics says the reduction of construction projects and the increase of family expenses has caused a decline in the business of construction mechanic workers. Families are now doing their own repairs instead of hiring professional services,” ISNA reports

 

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