Raisi's Government Sets Another Record; Highest Withdrawal from the National Development Fund

The newspaper Etemad reported that the government of Ebrahim Raisi has broken the record for withdrawals from the National Development Fund, averaging $1.12 billion per month over the past year and a half since the start of his administration. The newspaper cited the Research Center of the Parliament, stating: "In the past decade, $100.8 billion from the National Development Fund has been withdrawn by governments, a practice that began during Ahmadinejad's second term amid escalating sanctions, continued through Rouhani's two administrations, and has now reached a significant figure in the two-year tenure of the thirteenth government." According to the Research Center of the Parliament, "The average withdrawal from the National Development Fund during Ahmadinejad's tenth government was $453 million per month, during the eight years of Rouhani's two governments it was nearly $700 million per month, and in the thirteenth government (one and a half years) it has averaged $1.12 billion per month. The goal of establishing the 'National Development Fund' was to convert part of the revenues from the sale of oil, gas, gas condensates, and petroleum products into lasting wealth, productive assets, and economic growth, as well as to preserve future generations' share of oil, gas, and petroleum resources. According to Etemad, the Research Center of the Parliament, relying on reports provided by the National Development Fund itself, has stated that a significant portion of the fund's resources has been allocated to uses contrary to its charter. According to the charter of this fund, the use of its resources for budgetary provisions and covering budget deficits is prohibited. However, in recent years, based on some laws passed by the Parliament, decisions by high councils, and special permits that governments have received from the Leader to cover budget deficits and emergency cases, withdrawals from the fund's balance or incoming resources have occurred. Previously, Mehdi Ghazanfari, the head of the National Development Fund's executive board, stated at the third National Development Fund conference: 'Of the $150 billion resources of this fund, $100 billion has been spent, $40 billion has been distributed as loans, and only $10 billion remains.' He also used the term 'plunder' to describe the state of the fund's resource expenditures. The banking and credit deputy of the National Development Fund stated in September 2022 that 'the National Development Fund financed $40 billion for 362 projects over 10 years, of which 233 projects have been completed, but only $500 million of the installments have been paid.' The head of the country's General Inspection Organization also stated: 'Those who have borrowed from the fund have received extensions more than 400 times, and the repayment periods of 8 years have extended to 14 years.'