Four private sector proposals for next year's budget
The head of the Iranian Chamber of Commerce says that the chamber has reviewed next year's budget bill, evaluated its strengths and weaknesses, and finally provided practical suggestions for correcting some of its problems.
According to the Iran International Stone Exhibition, the meeting of the Board of Representatives of the Iranian Chamber of Commerce was held today with the presence of members of this chamber and Ali Reza Razm Hosseini - Minister of Industry, Mines and Trade - and Gholam Hossein Shafei - Chairman of the Chamber of Commerce - referring to the studies On behalf of the chamber, it made proposals from the private sector to improve next year's budget bill.
He said there were concerns about the effects of next year's macroeconomy on next year's economic stability because of the risks associated with providing resources and the inflexibility of government spending. In case of non-realization of resources from oil exports by combining current expenditures, which is inflexible; Currency jumps and increasing continuity and large increases in interest rates are not unexpected. Disruption of budget resources to the National Development Fund is one of the main reasons for the lack of proper development of the private sector, which was repeated in next year's budget. Fortunately, with the announcement of the Supreme Leader of the Revolution, it was largely resolved. We hope that his sentence will be considered in the process of reviewing and approving the budget.
Referring to some ambiguities and problems in the budgeting process in the Iranian economy, Shafei said that the private sector, after examining the shortcomings of the budget bill, has made suggestions to improve this document.
The four private sector proposals for next year's budget are as follows:
1. Next year's budget is a continuation of the budgeting policies of the past 50 years. The executive and the legislature, by learning from the experience of economic sanctions aimed at the existence and acceptance of the country's political system, with the two main goals of re-creating the country's executive structure and redefining how to manage and use oil and gas resources (not just exports) in The country should put the reform of the budgeting structure in the country on its agenda. Such reforms require the use of opportunities, difficult decisions, and the broad support of individuals and experts, the groundwork for which must be provided primarily by politicians.
Whenever the executive and legislative branches take practical measures to organize thousands of development projects and cancel the implementation of hundreds of these projects that are not economically justified and have been imposed on the budget due to local, regional and institutional pressures, whenever these two branches instead blow on the demands of groups In order to increase salaries, they tried to eliminate the structural budget deficit, whenever the two powers tried to target wealth creation and higher economic growth instead of expanding subsidies as a way to support them, whenever the government and public apparatus They rework and work in parallel and disperse, and their existence is proven to be merged or dissolved.
2- It is necessary to determine the task of the government's foreign exchange and support policy in next year's budget. A clear proposal on this issue is that either the difference between the support price of basic goods and the exchange price be paid to the people in the form of cash subsidies or a specific product portfolio. Guaranteed to this basket with subsidized prices.
3- An independent report on the reasons justifying the forecast of 55% growth in taxes on private legal entities and at the same time negative growth of public legal entities is needed to show what effect each of the variables such as inflation and exchange rate has on companies' profits in various sectors such as petrochemicals , Steel, mining, etc. and what is their share in this forecast. Also, what part of this increase is related to countering tax evasion or reducing tax activities and concessions?
4- The Islamic Consultative Assembly, in approving the budget, should change the unfavorable trend of the last 20 years in a strict decree and guarantee the minimum allocation of oil and gas resources to development projects, and the government should only be allowed to allocate development funds after the allocation of resources. The oil and gas from the credits of the development projects to spend the additional resources to pay the current expenses.
According to the report, the Iranian Chamber of Commerce had previously asked the members of the Iranian Chamber of Commerce to amend their proposals to the Chamber of Commerce while reviewing the budget bill.
The parliament has announced that the general budget will probably be voted on by a specialized commission this week, after which it will key in a closer look at next year's budget.
* ISNA
