TEHRAN – Iran’s Planning and Budget Organization (PBO) said development spending allocations in the first five months of the current Iranian year (March 21-August 22) reached 19.07 quadrillion rials ($38.1 billion), compared with 5.17 quadrillion rials ($10.3 billion) in the same period last year, marking a 3.7-fold increase.

The organization said development projects are considered the driving force of progress in each region, adding that with more than half of government revenues sourced from taxes and duties, citizens expect such funds to be used for national development.

In response to media questions on whether the government had met the requirement to allocate five-twelfths of development funds in the first five months of the year under the 1404 budget law, the PBO said no such obligation exists in the current budget.

It added that since total approved development funds for this year amount to 60 quadrillion rials ($120 billion), the 19.07 quadrillion rials already allocated represent 32 percent of the approved amount — an unprecedented ratio in recent years. It noted that payments are tied to actual revenues.

On how budget allocations are prioritized for development projects amid limited resources, the PBO explained that nine specialized offices within the organization, covering sectors such as health, energy, and transportation, review and distribute funds to projects under their remit.

According to the PBO, the main criteria for prioritizing allocations include: Physical progress of projects: Projects with higher completion rates are prioritized, projects approved during official visits: Initiatives endorsed during trips by the Leader of the Islamic Revolution or the president are considered provincial or regional priorities, projects in cold regions: Due to difficulties in carrying out construction during winter, such projects are prioritized in the first half of the year, educational facilities: Universities and schools are funded during summer recess to avoid disruptions, poverty alleviation initiatives: Including construction of schools in deprived areas, projects addressing national challenges: Such as tackling water scarcity, and public service facilities: Including hospitals and other major infrastructure.

The organization said projects may fall under multiple priority categories or shift in priority over time. Final decisions on allocation are made by the relevant specialized offices.

EF/MA