On Sunday January 4, Gholamreza Kateb, spokesman for the Planning and Budget Committee of Parliament, in examining the characteristics of the budget bill (2015- 2016) of the country by the Rouhani government said: “To reach $16 billion revenue from targeted subsidies for next year, we will need to increase by 10 percent the average price of energy carriers.”
The lawmaker added: “In the current year, the $16 billion revenue from targeted subsidies has not been achieved and to reach this figure, the fuel prices need to increase. Assessments show that in the current year, revenue from targeted subsidies reached $14 billion, suggesting that to reach $16 billion, an average of 10% increase is needed. Therefore the tariffs for water, electricity, gas and fuel were faced with an increase in the second round of targeted subsidies by the government.”
Since the Rouhani government has predicted an oil price of $72 a barrel in the budget bill for next year, based on the decrease in oil price to $55 (its further fall may be possible in the future), it is expected that the government will face an ever increasing deficit.
This is while the Rouhani government has increased the security forces budget by 50% for next year – meaning more pressure on the middle and lower classes of society.
The Rouhani government increased the price of bread by 30% a while ago.