Kerry Decries 'New Isolationism'

Secretary of State John Kerry inveighed against what he called a “new isolation” tendency in the United States. Kerry made the comments on Wednesday to a small group of reporters and added that the country was beginning to behave like a poor nation. (Reuters, 26 February)

Kerry told the reporters that the expected budget for FY’15, with tighter spending, in part at the behest of congressional Republicans, could limit U.S. clout around the world.

“There's a new isolationism,” Kerry said. “We are beginning to behave like a poor nation.” (Reuters, 26 February)

“This is not a budget we want. It's not a budget that does what we need,” Kerry said. Pointing out that the budget deal entailed cuts demanded by the Republican-led House of Representatives. “It was the best the president could get. It's not what he wanted.”

File photo: U.S. Secretary of State John Kerry in Jakarta, 16 February 2014. (EVAN VUCCI/POOL/REUTERS) 

Rate of Economic Growth in Iran Drops to Zero

Budget for Iranian New Year 1392

Hojatoleslam Qolam-Reza Mesbahi Moqadam, chairman of Majlis Budget Reconciliation Committee, said today in Tehran that the rate of economic growth in Iran has dropped to zero. Mesbahi Moqadam made the comments at a meeting of Iran’s Chamber of Commerce, Industries and Mines. (ILNA, 7 April)

Mesbahi Moqadam also said that in its budget for the current Iranian calendar year (starting 21 March), the government has proposed a single rate for foreign exchange closer to the open market rate. Under the proposal, the preferred rate of exchange for basic goods and medicine will be replaced by a government subsidy that approximates the difference in costs based on the current preferred rate (12,260 rials to a dollar) and the market rate (close to 35,000 rials to a dollar).

The proposed budget also estimates oil exports at 1.3 million barrels a day, a drop from last year’s budget of 2.7 million bpd. The price for each barrel of oil is also budgeted at $95.

To read ILNA’s report (in Farsi), please click here. 

Chart: Growth rates: 2003-2012 and estimates for 2013 (iraninsight.com). Majlis chairman of budget reconciliation committee said however the growth has already reached zero.

Iran Passes Stopgap Budget

Iran's Majlis, the parliament, has passed a three-month stopgap budget while it debates President Mahmoud Ahmadinejad's full-year spending proposals.

The temporary "three-twelfths" budget authorizes spending of 450,000 billion rials for the first quarter of the year. The three-month budget is roughly equivalent, in rial terms, to only one month of spending in the current Iranian calendar year that ends on 20 March. (Fars News Agency, 10 March)

Iran Facing Huge Budget Deficit

The chairman of the Budget Committee of Majlis, the Iranian parliament, said today in Tehran that the country is facing a budget deficit of 740 trillion rials, or more than $60 billion in official exchange rate. Chairman Mesbah Moqaddam added the current government budget is 1,640 trillion rials, or $133 billion, making the deficit a whopping 45 percent of the total budget. (Aftab Yazd, 3 November)

Majlis Approves New Budget

The Majlis, Iranian parliament, today approved the budget for the current Iranian calendar year at 5,666 trillion rials or $462 billion in official exchange rate. The new budget is 11 percent higher than last year’s if calculated in the local currency (5,084 trillion rials last year), but slightly lower if calculated in dollars ($469 billion last year). The difference is due to a 4-percent official devaluation of rial this year.

The percentage of the budgeted revenues from oil exports is not reported. But Iran’s total revenues from oil sales last year were at approximately $73 billion, with another $36 billion in non-oil exports, for a total of $109 billion in hard currency revenues. The figure is expected to be lower this year due to expanding oil-related sanctions. The details of non-export revenues budgeted for the current year were also not available. If the government were forced to print money to meet any budgetary shortfall, however, a rise in already high inflation rate could be expected.