Govt. approves Finance Ministry’s roadmap for economic development

November 17, 2021 - 15:29

TEHRAN – Iranian Finance and Economic Affairs Minister Ehsan Khandouzi announced on Wednesday that the government Economic Coordination Headquarters has approved a roadmap proposed by his ministry for economic development and curbing inflation.

According to Khandouzi, the roadmap which mainly focuses on production growth and curbing inflation has been reviewed and approved in a meeting of the mentioned headquarters, IRIB reported.

“[based on this roadmap] It is decided to help increase productivity and improve the business environment through two categories of measures. First, removing barriers to the production and business by chain financing of businesses, and raising corporate tax while reducing the production tax rates,” the minister explained.

The second category of government economic measures includes serious support for pioneering projects that have multiple chains and will generate large revenues and create employment, Khandouzi added.

Pointing to the ways for financing pioneering projects, the official noted that the participation of foreign partners mainly from neighboring countries, the issuance of project shares and offering them at the stock market, and finally using the capacity of large holdings and subsidiaries of the country’s banks and large state and public companies are among the ways through which the government plans to fund these projects.

Khandouzi also pointed to his ministry’s plan for curbing inflation based on monetary and credit measures and budgets centered steps in collaboration with the Central Bank of Iran (CBI) and the country's Budget and Planning Organization (BPO), saying: “Budget measures and the use of monetary instruments such as controlling banks' balance sheets on a monthly basis, controlling interbank market rates and open market operations will be among these programs.”

Preventing tax evasion, controlling government spending, selling surplus assets of government-owned entities and generating revenue by the government-owned companies were also mentioned as ways for reducing budget deficit in the current year.

EF/MA

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