Iran’s 2022-2023 Budget: Zero Employment and Production, Increased Plunder
Written by
Mansoureh Galestan
One of Iran’s major economic woes is high unemployment and low production rates. But Iran’s 2022-2023 budget has neglected these factors.
The employment figures, inflation, and production are three major economic indicators of a country’s economic state.
The resources of the Iranian regime’s 2022-2023 budget include oil export (1.2 BPD), selling government’s securities and bonds, increasing taxes, a relative reduction of salaries (according to the rising inflation rate), and limited revenue from petrochemical and steel exports.
Selling oil, especially 1.2 BPD, is impossible due to the international sanctions and the damaged infrastructures of Iran’s oil sector. Even selling oil at $60 per barrel would not cover the regime’s expenses entirely. It is worth noting that the oil market has had a significant decline, and fluctuated due to the Covid-19 pandemic.
The main sources of the regime’s budget are not mentioned in the budget bill at all, such as printing banknotes, income from the capital market, extracting cryptocurrencies, and service revenues.
The budget bill clearly shows that the regime has absolutely no desire to increase production and will not increase agricultural and livestock or industrial production rates.
It is worth noting that the country’s liquidity will increase by banknote printing. The inflation rate will soar since the regime refuses to increase production and employment.
The same situation has caused this regime to be at the bottom of the table of entrepreneurs in the global statistics of entrepreneurship.
The 2020 report of the Global Entrepreneurship Watch (GEM) consortium assesses the situation in Iran, along with 44 other countries such as Germany, Australia, the Netherlands, Egypt, Kuwait, Chile, Canada, Italy, Oman, Norway, India, Angola, and Greece.
According to the consortium’s estimates, Iran ranks 41st out of 45 countries in terms of “fear of failure in entrepreneurship.” This explains why investment in production in Iran is constantly declining to zero.
In a nutshell, the Iranian regime has dug deeper in people’s pocket by increasing taxes, banknote printing, inflation, and hiking prices of basic goods and essential food stuffs.
To have a better understanding of Iran’s 2022-2023 Budget Plan, see our in-depth report, “Exclusive Report on Iran Regime’s 2022-2023 Budget.”