Majlis sets NDF share of oil incomes in budget bill at 38%

February 21, 2021 - 15:1

TEHRAN – Iranian parliament on Sunday stipulated that the share of National Development Fund (NDF) from the country’s oil and gas export revenues in the newly amended budget bill for the next Iranian calendar year 1400 (starts on March 20) must be 38 percent if crude oil exports surpass one million barrels per day (bpd).

As reported by IRNA, according to a decision approved by MPs on Sunday, in case of exporting one million barrels per day (bpd) of oil and gas condensate (or less), the NDF share would be reduced to 20 percent, however, the 18-percent gap will be considered government’s debt to NDF and should be settled in the future.

Also, the share of the National Iranian Oil Company (NIOC) from the oil and gas condensate export revenues is set at 14.5 percent, while a 14.5-percent share is also allocated to the state-owned companies affiliated to the Oil Ministry.

Last week, the parliament approved the amendments of the national budget bill for the next Iranian calendar year. The amendments were approved during an open session of the parliament with 211 votes in favor, 28 votes against, and six abstentions.

The parliament had earlier rejected the outlines of the budget bill, which was submitted to Majlis by the Vice President for Parliamentary Affairs Hossein-Ali Amiri on December 2, 2020.

In the reformed budget bill, the government had reduced the NDF share of the oil revenues and increased the ceiling of the incomes from publishing treasury bonds by 530 trillion rials (about $12.6 billion), according to Mojgan Khanlou, spokeswoman of the Parliament Budget Committee.

Also, the government proposed to reduce its expenses by 400 trillion rials (about $9.5 billion) to prevent the need for increasing tax incomes, Khanlou said.

“The most important factor in the amendment was the discussion of the subsided foreign currency and the amount of oil revenues; The oil revenues in the amended bill were not changed, and the subsidized foreign currency would still be allocated for essential goods like medicine and crops” she noted.

The previously proposed national budget bill for the next Iranian calendar year amounted to about 24.357 quadrillion rials (about $579.928 billion at the official rate of 42,000 rials), with a 20-percent rise from the current year’s approved budget.

The bill estimated the government’s budget at 9.298 quadrillion rials (about $221.38 billion), with an increase of 47 percent from the figure of the current year.

It envisaged 3.175 quadrillion rials (about $75.595 billion) of incomes, while 6.37 quadrillion rials (about $151.666 billion) of expenses.

Revenues from exporting oil, gas, and gas condensate were estimated at 1.99 quadrillion rials (about $47.3 billion), up 323 percent from 454.9 trillion rials (about $10.83 billion), approved in the current year’s budget.

Supplying basic goods, treatment, and medical equipment; securing livelihood; supporting production and employment; promoting and supporting non-oil exports and knowledge-based companies are the focal points of the bill.

EF/MA

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