Major Reduction of National Development Fund's Share in 98 Budget

During a closed session of the parliament regarding the 98 budget, two representatives announced that sessions are being held to implement the reforms proposed by Ayatollah Khamenei in the budget, reducing the National Development Fund's share from 34% to 10%. The main mission of Iran's National Development Fund is to convert a portion of oil and gas revenues into 'lasting wealth, productive assets, and economic growth.' On Sunday morning, December 25, a closed session of parliament was held regarding the 98 budget. Meanwhile, according to Tasnim News Agency, Alireza Salimi, a representative from Mohaljat, reported that in this session, Gholamreza Tajgardoon, the head of the parliament's Planning and Budget Commission, presented a report to the representatives regarding the government's predictions for the 98 budget and its 'deficiencies.' According to Salimi, based on the Sixth Development Plan, at least 34% of revenues from oil sales must be deposited into the National Development Fund, but the government has reduced this amount to 10% in the 98 budget bill, which is 'against the law.' According to the Sixth Development Plan, the share of the National Development Fund from crude oil and gas exports was set at 30% in the first year of this plan and must increase by at least 2% annually. However, Fars News Agency had previously reported that due to a 'significant decrease' in oil exports, there was opposition to depositing 10% of oil revenues into the National Development Fund during a meeting of the Supreme Economic Coordination Council of Iran. Meanwhile, there have been previous reports about the Supreme Leader's order to withdraw amounts from the 'National Development Fund' for military purposes. Behrouz Namati, the spokesperson for the Iranian parliament's presiding board, reported on Wednesday, December 21, that the submission of the 98 budget bill to parliament has been postponed until after the 'desired reforms' by the Supreme Leader are implemented. Namati also reported on Sunday that meetings were held last week among the heads of the three branches of government, the Research Center, and the Planning and Budget Commission to make the changes desired by the Supreme Leader in the budget. The National Development Fund was supposed to become the financial backbone of the country to cope with difficult conditions and ensure intergenerational justice, but last year it was announced that the Supreme Leader agreed to withdraw $4 billion from the National Development Fund for military purposes, state television, and several development projects. This is while military and state television budgets should normally be covered by the country's general budget. Last year, $2.5 billion of this amount was allocated for military purposes, and military expert Hossein Aryan stated in an interview with Radio Farda that this budget was withdrawn to cover the costs of the war in Syria. Reports about withdrawals from the National Development Fund for military budgets have surfaced while Iran's oil sales in the upcoming budget are expected to be about half of the projected sales for 97. Meanwhile, Mohammad Baqer Nobakht, the head of the Planning and Budget Organization, has mentioned a reduction in government revenues to one-third due to the return of American sanctions.