What terms did the Joint Commission apply to the 1400 budget? - آرتان پرس | مرجع رسمی اطلاع رسانی فولاد | آرتان پرس | مرجع رسمی اطلاع رسانی فولاد

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What terms did the Joint Commission apply to the 1400 budget?

شناسه : 40200 ۱۸ بهمن ۱۳۹۹ - ۱۱:۰۹
What changes has the Iranian budgeting system experienced in the last century? From which institution should the process of structural budget reform begin? Do the laws of the country restrict structural reforms? What is the role of the parliament and the Court of Audit in structural reforms?
What terms did the Joint Commission apply to the 1400 budget?

What changes has the Iranian budgeting system experienced in the last century? From which institution should the process of structural budget reform begin? Do the laws of the country restrict structural reforms? What is the role of the parliament and the Court of Audit in structural reforms? These are all questions that, if answered correctly, we will understand the role of the Budget Consolidation Commission to reform the budget structure, and we may reach a point where it is responsible for all budgetary conflicts between government and parliament. In this analytical note, the latest processes We will pay the budget reform and the round trips of the 1400 budget bill between the parliament and the government. Please be with Artan Press.


*** A history of budgeting in Iran

Budgeting in Iran is a very complex and lengthy process that takes months to complete. Initially, the budget directive is approved by the government and communicated to all executive bodies. The executive bodies also prepare and adjust their proposed budget and send it to the program and budget organization. The proposed budget will be submitted to the Council of Ministers after review and approval by the deputies of the Management and Planning Organization, and after its approval, the budget bill will be submitted to the Islamic Consultative Assembly.


*** Parliament enters the 1400 budget reform

What is the role of the parliament in approving and monitoring the implementation of the budget? What steps did the 11th parliament take in the structural reforms of the 1400 budget? Should parliament be the starting point for structural budget reform? What is an allocation committee and who are its members? These are all questions that make the parliament better aware of its position in the operational budgeting system.


*** A look at the structure of Iran’s budget

The government budget generally consists of two parts. One part is revenue sources and the other part is government expenditure sources. A budget deficit is created when government expenditures exceed revenues. In recent years, the budget deficit has steadily increased and the implementation of the budget with the previous structure has created many problems for the country. That is why structural reform of the budget, creation of stable revenues, control and management of government expenditures is one of the most important concerns of economists and policymakers.


*** ۱۴۰۰ Budget Consolidation Commission

The parliament put the Joint Commission in charge of budget reform in order to follow the path of the budget reform in the usual way, and this commission practically started to change the dollar figures and rates. For example, according to the decision of the integration commission, 106 thousand billion tomans have been added to the government’s expenditures, and in fact, the amount of subsidies has been doubled. In total, the share of each Iranian in the subsidy is examined in several scenarios. And it is likely that from next year, multi-rate subsidies will be paid to households.


*** Actions of the Joint Commission to amend the 1400 budget

One of the measures taken by the Integration Commission was that the Budget Integration Commission adjusted the foreign exchange subsidy for basic goods by eliminating 4,200 Tomans. The government had earmarked $ 8 billion for next year at a price of 4,200 tomans to be spent on importing basic goods. This was exactly the point of contention between the government and parliament. The parliament believes that the 4200 Toman currency should be eliminated immediately, but the government believes that this currency should be set aside step by step so as not to shock the markets.


*** The role of the Integration Commission in subsidy reform

In the latest decision, the members of the Parliamentary Budget Consolidation Commission have come to the conclusion that the cash subsidy should be doubled from next year to the account of the head of the household at 91,000 Tomans per person. The decision of the representatives of the fundamentalist majority is to remove $ 4,200 and transfer the difference to the people’s account. According to the government, this decision will cause inflation to rise even higher.


*** Request to change the generalities of the budget bill

A group of economic experts in a letter to MPs said that it is necessary to reject the general budget bill of the year 99 to reform the structure, otherwise the mistakes of the past will be repeated. The 99th budget bill will greatly increase prices, and if this bill is not amended, the living conditions of the people will worsen. Giving more cash subsidies, even up to 10 times before deep economic reforms, will make people poorer in the long run. The policy of the parliament, however, is to prevent the distribution of poverty by dividing the budget instead of reforming it.


*** Take a look at the 1400 budget changes

In the budget bill of 1400 compared to 1399, the general budget of the government increased by 65% ​​(۳۶۶ thousand billion Tomans) to 930 thousand billion Tomans, government revenues increased by 22% to 318 thousand billion Tomans, the transfer of capital revenues increased by 128% to 225 thousand billion Tomans and the transfer of financial revenues increased by 139% to 298 thousand billion Tomans.


*** Revenue sources in the 1400 budget

Only 15% of the sources of budget increase are provided from revenue (taxes, sales of goods and services, etc.). 47% of the budget increase resources will be provided from the transfer of financial assets (borrowing and sale of companies) and 35% from the transfer of capital assets (sale of oil and property).


*** Tax share in the budget 1400

The share of taxes in providing resources for the budget increase is 14.5 percent, while the share of companies is only 4.1 percent and a 72 percent increase in taxes is expected to be collected from the people. Despite all the claims, the share of important items of wealth and real estate taxes from the sources of budget increase is only 4.9%.


*** Oil sales share reform

The share of oil sales from the sources of budget increase is 41.3% (151 thousand billion Tomans). Share of securities supply (government debt) from sources of budget increase 12.3% and share of withdrawals from fund resources National development is 12.4 percent. The share of resources obtained from the sale of state-owned companies from the sources of budget increase is 23% and amounts to 95 thousand billion Tomans.


*** Rejection of the amendments of the Integration Commission in the parliament

Despite the political uniformity of the 11th parliament, leaders opposed to the government’s budget bill failed to persuade members of parliament to vote in favor of the amendments by drawing the attention of lawmakers to what they called an “amendment.” From this point of view, this dissenting vote can be considered the first defeat of the 11th parliament. On the other hand, the general rejection of the consolidation report from the 1400 budget bill could also be a sign of the government’s success.


*** Budget scenarios before the parliament

With yesterday’s decision of the parliament, the government has two scenarios; First, in two weeks, he will amend the returned bill and submit it to the parliament. In this case, the amendment bill will be sent to the Joint Commission for consideration to be reviewed by the Joint Commission within two weeks.

The second scenario is for the government to present the 12th budget bill. Otherwise, Parliament will extend the three-twelfth budget bill 99 for the first three months of 1400; This will mean that government receipts and payments in the first quarter of next year will be calculated based on the approved budget for the first quarter of 1999.


*** The role of parliament in controlling the exchange rate

The parliament should be more careful in determining the exchange rate for various matters in the budget of 1400. In addition to the review of the budget of 1400 in the Islamic Consultative Assembly and the insistence of the parliament on fundamental changes in the path of budget transparency, It is part of the annual budgets. It should be borne in mind that the country has long-term development plans such as the vision document, a resilient economy and permanent provisions, and therefore annual budgets alone cannot bring about structural reforms and must be based on long-term plans.



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