Nov 26, 2014, 11:25 AM
News Code: 81402214
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Minister says sanctions envisaged in next year budget

Tehran, Nov 26, IRNA – Minister of Finance and Economic Affairs Ali Tayebnia says the impact of the sanctions will be taken into account in the national budget bill for the Iranian calendar year 1394 (March 2015-March 2016).

He said a panel of economic experts set up by the government has been studying various scenarios for the national economy so that predetermined policies can be prepared for dealing with various situations.

Speaking on the sideline of a local gathering here Tuesday, the minister added that the national budget for the next fiscal year will be drafted based on an oil price of $70 a barrel and a currency exchange rate of 26,500 rials to one U.S. dollar.

The rial currently trades at around 32,600 to the dollar on the free market.

Iran’s national budget for the current Iranian calendar year, which ends on March 20, 2015, was drafted based on an oil price of $100 per barrel and exports of about one million barrels per day.

In June, Tayebnia said Iran will attempt to wean the economy away from its dependence on oil, even if all of the economic sanctions that have been imposed on the country are lifted.

Too much reliance on oil revenues has been the source of low economic growth over the past few years, he added.

The Organization of the Petroleum Exporting Countries (OPEC) will meet in Vienna on November 27 to decide whether to cut output to trim global supply and boost oil prices, which have fallen by 30 percent since June.

In addition, Iran and the six major powers decided to extend the negotiations on Iran’s nuclear program and have set two new deadlines.

Negotiators from Iran and the 5+1 group (the United States, Russia, China, France, Britain, and Germany) reached the agreement during talks in Vienna on Monday, just ahead of the previous deadline, which was set to expire at midnight.

On Monday, a Western diplomat said that a new deadline of March 1, 2015 has been set for a political framework agreement and a July 1, 2015 deadline has been set for a final agreement, including annexes, CNN and the New York Times reported.

The negotiations will resume in December.

MR/1664