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News & Views Iranian budget gets final approval from constitutional council TEHRAN, Feb 2 (AFP) - The Iranian government's austerity budget for the coming financial year received final approval from the constitutional council Tuesday after its approval by parliament Sunday. The Council of Guardians, which ensures legislation conforms to the constitution and Islamic sharia law, ratified the budget after MPs made the required "modifications in several amendments," a spokesman told the official news agency IRNA. The budget, which is intended to tackle a severe recession prompted by a sharp fall in the price of the government's main source of revenue, oil, was approved after two weeks of often stormy debate in parliament. The government is facing a 6.3 billion dollar budget deficit for the current financial year, and is set to raise taxes by over 34 percent for the coming year, though many MPs said it is unlikely to obtain forecast tax revenues. The budget foresees spending of 97,553 billion rials (31 billion dollars at the official exchange rate) for the year beginning March 21 but still predicts a budget deficit of five billion dollars or more. It anticipates an oil price of just over 11.8 dollars a barrel, 9.2 percent down on this year, generating revenues from oil and oil products of 12.084 billion dollars. Iran, the second largest oil producer in the Middle East, depends on oil sales for more than 80 percent of its hard currency earnings. Despite parliament's approval of the budget Iran's currency, the rial, has continued to plunge in value against major curencies on the illegal open market, according to money changers. The rial is now trading at around 8,500 to the dollar against 7,500 just a week ago. Links * Iran News
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