Trump sanctions send Iran budget de cit soaring
The impact of the US sanctions has already had an impact on Iran’s public nances. The public sector de cit soared by 75% in the three months to June 2018 compared with a year earlier. The shortfall for the seven months to October 2018 was IRR391.4tn ($3.83bn). This was more than double the budget law’s forecast of IRR190.9tn ($1.87bn) for the period and was 74.8% more com- pared with the de cit in last year’s corresponding period. The authorities have moved to cut spending to keep a cap on the de cit to try and avert a major crisis in the public nances. The proposed budget set out by the government for 2019 is less than half of the country’s budget for the previous year. This scale of spending cuts is unprecedented in the history of the Islamic Repub- lic. The budget bill that needs to be approved by parliament and a clerical council is roughly $47.5bn. The 2018 budget proposed by President Hassan Rouhani was approximately $104bn. According to the budget bill, the regime is estimating it will export around 1.5m barrels per day at $54 per barrel.