Iran's Oil Revenue Decreased by 20 Trillion Tomans in 2014

The Minister of Economy of the Islamic Republic announced a reduction of approximately 20 trillion tomans from the Iranian government's oil revenue in 2014. Previously, Iranian officials had reported a budget deficit due to falling oil prices. According to the state news agency IRNA, Ali Taebnia, the Minister of Economy, stated on Thursday, March 19, that the Iranian government managed to pay all current expenses and employee benefits on time during this year. Taebnia mentioned that in 2013, the total construction expenses paid were 13 trillion tomans, which increased to 26 trillion tomans in 2014. Iranian government officials had previously warned of a projected budget deficit for 2014 due to declining oil prices in global markets. For instance, Mohammad Baqer Nobakht, the government spokesman, stated on Wednesday, January 7, that 31 trillion tomans of the projected government revenues in the 2014 budget were not realized, adding that 'naturally, there will be difficulties.' The price of OPEC oil, which was around $108 per barrel in the first half of the previous year, has now fallen below $49. Meanwhile, Mohsen Rezaei, Secretary of the Expediency Discernment Council of Iran, mentioned on Sunday, January 21, that due to sanctions, Iran has seen a 'one hundred billion dollar' decrease in oil revenues over the past three years, and if the decline in oil prices continues for another three years, another one hundred billion dollars will be lost from Iran's oil revenues. The AON Institute, which specializes in measuring the risk levels of countries, predicted that in 2015, many oil-producing countries would become severely unstable due to the drop in oil prices. The decline in oil prices occurs while the Islamic Republic of Iran is still unable to receive part of its oil revenues from its customers due to financial sanctions. Additionally, Nobakht reported on Thursday, March 19, that 22 trillion tomans of the country's oil sales revenue has not been collected in 'recent months.' Earlier, the World Bank reported on January 29 that if current oil prices persist and Iran fails to reach a comprehensive agreement with the six world powers on its nuclear program by the first half of this year, the total value of its oil exports for this year would only be $23 billion, while this figure reached $120 billion in 2011. In the 2014 budget, the price of Iranian oil was projected at $100 per barrel, but reports indicate that in the 2015 budget, the unofficial price is set at $40 per barrel.