Details of Budget Bill 1401 / Omid Entrepreneurship Fund becomes Provincial Development Fund

According to the economic correspondent of Fars News Agency, the first financial document of the 13th government or the budget bill of 1401 will be submitted to the parliament these days.

This document will face many changes in the current period, and according to Seyed Massoud Mirkazemi, head of the Program and Budget Organization, the budget will change.

One of these developments is related to the reduction of budget lines, which Mirkazemi announced. Difficult; There will no longer be news of a budget bill; “The 1401 budget will go to the parliament with the least number of rows.”

* What are budget lines?

The budget line refers to the amount of credit that is approved by various agencies for one year of activity. At present, each device and sub-device has a separate credit line and is independently connected to the program and budget organization.

for example; If you consider the Ministry of Labor, Cooperation and Social Welfare, it consists of different sections such as the Technical and Vocational Organization, the Welfare Committee, the Relief Committee (the section that uses public budget funds) and other sections, each with a separate line in the budget. The government is supposed to reduce these rows to, say, one row. That is, it allocates a credit line only to the Ministry of Labor Cooperation and Social Welfare, and below that, the share of the mentioned sections is determined.

How many budget lines does the main government send to the parliament?

According to rumors, there will be about 85 national and provincial budget lines for the 1401 budget, and the budget bill will be so small that it will fit in your pocket.

The purpose of reducing the budget line

There are different views on the budget in the body of expertise. At present, the officials believe that in order to hold the officials of the apparatuses, ministers and governors accountable, it is necessary to reduce the independent ranks and be under the supervision of the minister and the highest official of the apparatus. This model seeks to strengthen oversight, transparency and accountability, and reform the structure.

On the other hand, some believe that instead of the issue, the form of work simply changes and it can not be called a reform of the budget structure. Reforming the budget structure should be based on performance and activities.

* Reform of the budget structure in the ninth government

Reducing budget lines is not a new model, and it was already proposed in the second administration of Ahmadinejad and took on an operational flavor. In 1987, the then president said, “We believe that the previous budgets had three forms: lack of transparency, complexity, and fragmentation. We tried to set transparent budgets with the help of ministers and experts.”

In the budget bill of 1987, the number of budget lines was reduced from about 700 lines to 69 lines. Of course, there was an appendix with the budget bill that listed the sub-rows separately. The purpose of reducing the rows was to increase transparency and improve oversight, and ultimately decentralize from the center to the provinces, but in Rouhani’s government, the budget rows returned to normal.

Finally, the delegates increased it to 262 rows. The deputies argued that some institutions were required by law to have an independent row, and that the budget, as a one-year law, did not violate the permanent law and that these amendments could not be implemented.

* Modify the budget structure

The reform of the budget structure started in 1997, according to the order of the Supreme Leader, in accordance with the conditions of sanctions and changes in the country’s revenue-generating process, but a shell of reform was put on the agenda and was not implemented properly.

With the coming to power of the 13th government, the organization has prioritized the program of changing the budget rail based on structural reform and in the face of the people.Calamities The economy, which is driven by the oil budget and brings deficits, borrowing and inflation, has resisted. In this regard, the Minister of Economy and the head of the Program and Budget Organization said that the budget expenditures in September, October and November were provided without borrowing, and then the President emphasized the continuation of such an assumption.

Mirkazemi had said in this regard: “The orders of the Supreme Leader in the face of the UmmahCalamities The country’s economy has been on the agenda since the first year of the 13th government; Reform the structure based on the consensus of the elites and the support of the parliament In the budget “1401 will be operational.”

Certainly economic stability, reducing inflation, increasing purchasing power and people’s livelihoods go through a disciplined and transparent budget and banking system. In this way, in order to compensate for the deficit, it should be prevented from being monetized, and more importantly, the banking system should not be able to create money.

* Iran Progress and Justice Fund

In the 1401 budget bill, the Iran Progress and Justice Fund is supposed to replace the Omid Entrepreneurship Fund, and subsidiary funds will also be formed in 31 provinces.

At present, the Omid Entrepreneurship Fund, which was conceived in Ahmadinejad’s government under the name of Mehr Imam Reza Fund, provides Qarz al-Hasna facilities, خرد micro-facilities for employment, and the completion and development of small and medium-sized enterprises.

The bill envisages strengthening the fund’s resources and balancing the sale of surplus movable and immovable property with the government ‌ profits and interest on mines and 20% of the credits of the law on balanced use. The law on balanced use deducts 3% of the total budget and provides for balanced development and justice in deprived and underprivileged areas.

It is rumored that the government will send a bill to parliament after the budget is submitted to establish provincial funds.

* Achieve eight percent growth for next year

According to the law of the Sixth Development Plan, the annual growth of 8% in the economy was predicted, but during the years of the program, the average economic growth of the country was negative and the economy cake was smaller than in 1990 with a fixed price.

* Equipping at least 340 thousand billion tomans for production boom

One of the goals of the 13th government is 8% economic growth. Preliminary estimates of the Program and Budget Organization show that in addition to allocating the necessary resources for development projects, which are commonly referred to as the driving force of the economy, ‌ separate resources for the Progress and Justice Fund, which is about 180 to 200 thousand billion tomans. , will be considered.

Since it is said that about 160 thousand billion tomans for development projects and about 180 thousand billion tomans for 340 thousand billion tomans to equip production, employment and economic growth in next year’s budget will be a significant figure.

* Assumed figures of budget bill 1401

For next year, according to international conditions and sanctions, according to some experts and news obtained from the PBO, 1.2 million barrels per day with a price of $ 60 and an exchange rate of 23,000 tomans is forecast. Also, about 1.7 million barrels of domestic sales of oil and petroleum products are estimated.

For this year’s budget, 2.3 million barrels of crude oil per day with a figure of $ 50 and an exchange rate of 17,500 Tomans were the basis for action.

The PBO has also set a significant figure for tax revenues next year.

* What is the income of the bonds?

Among the revenue features, we can mention the significant decrease in the sale of securities in the bill, which according to the latest news has decreased to 40,000 billion tomans. While next year, 200,000 billion tomans of bonds sold last year and this year must be repaid. This year, 132 thousand billion tomans of bond sales are in the heading of transferring financial assets.

* National Development Fund share

According to the law of the Sixth Plan for next year, the share of the National Development Fund in crude oil exports should reach 40%, but during these years, due to sanctions, the government reduced it to 20%.

According to information from next year’s budget, the 13th government will request the same 20% share for next year’s budget to compensate for the budget deficit and create prosperity in the economy.

end of Message/