Iranian President Ebrahim Raisi presented to parliament on Sunday a draft budget for the 2022-2023 fiscal year, which includes halving oil production and focuses on defense against the backdrop of US and Israeli sanctions and threats.
The draft budget for the Iranian new year, which begins on March 21, must be voted on before the end of December. Tehran expects in its budget an economic growth of 8%.
The document indicated that Iran intends to produce 1.2 million barrels of oil per day and sell it at a price of $60 a barrel, while last year it planned to produce 2.3 million barrels per day at $40 a barrel, according to Tasnim Agency.
Thus, it is expected that Oil revenues drop from $33.5 billion to $26.3 billion.
Oil experts believe that this estimate is very high, because Iran is currently selling about 600,000 barrels per day. Oil revenues will account for a quarter of budget revenues, while another quarter will come from tax fees, which have risen sharply.
The other important aspect of the project is that of defense, with the increasing threats of Israel and the United States to resort to the military option against Iran.
According to the document, the amount allocated to the “program for strengthening defense and strategic research capabilities will reach 4.5 billion euros,” after the defense share amounted to 4 billion last year.