The 1401 budget is populist / budget ambiguities remain for the stock market
According to Tejarat News, the 1401 budget bill was presented to the parliament today. Although the budget for the stock market seems to be good news, experts believe that the 1401 budget is optimistic and a bit populist.
Salman Nasirzadeh, a stock market expert, said: “The 4,200 Toman currency is still available for medicine and wheat, and it seems that its elimination for these items will be gradual.” But in general, non-payment of preferred currency for industries such as oil and agriculture will have a positive effect and is not a bad thing overall.
He continued: “The next issue to be considered is the reduction of government revenues from the issuance of bonds, which has been reduced from 132 to 88. If this is done, it will naturally have a positive effect on the stock market. However, it should be noted that if the sanctions continue, the government can issue papers from the source and sub-branch of 177 other efforts. So this risk still exists for the stock market.
The expert went on to point out that the fuel gas price of the petrochemical, refining and steel industries has tripled: this used to be 30% of the feed rate, but now it has increased to 100%, which puts a lot of pressure on the related industries.
Some budget figures are difficult to achieve
Nasirzadeh stated: The operational balance in last year’s budget was 460 efforts, but in this year’s budget it has been reduced to 300 efforts. Revenues from taxes increased by 77% and revenues from oil and petroleum products were estimated at 800 hemat. Most likely, the government only intended to reduce the deficit because these figures are difficult to achieve.
He stated: 1401 budget is not pleasant for the stock exchange. Ownership interest rates have risen from 10 to 40. Due to falling global prices, mining companies may be charged.
The expert pointed out: the ambiguities in the ownership interest rate, industrial gas fuel rate, the amount of bond issuance and… still exist. The imposition of costs on industries and the stock market was predictable. But the optimistic and populist view of some issues in the 1401 budget still casts a shadow of ambiguity in this heavy market.
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