Will the Reduction of Iran's Infrastructure Budget Lead to Increased Road Casualties?

The Iranian government has reduced the country's infrastructure budget for the year 1397 (2018) and will use treasury bonds to finance the approved budget. This action will not only halt many infrastructure projects but could also lead to unsafe roads and increased road casualties. Khairullah Khademi, Deputy Minister of Roads and Urban Development, stated that projects must be prioritized, emphasizing that 'the government currently lacks liquidity in rials.' Mohammad Baqer Nobakht, head of the Planning and Budget Organization of Iran, also reiterated this issue, stating that the funding for the country's infrastructure budget comes from treasury bonds. According to Iranian officials in the road sector, 30 railway projects are active in the country, and about 9 highway projects are currently underway. However, promises for the inauguration of each of these projects have been made for several months or years in the future. Without liquidity, advancing infrastructure goals is not feasible. Abdolkarim Hossein Zadeh, a member of the Parliament's Civil Commission, criticized the government and the unfavorable conditions of infrastructure projects regarding budget allocation, stating to Eghtesad Online, 'Overall, it does not seem that this year's allocation of infrastructure credits will exceed 30 percent.' Hossein Zadeh considered the transfer of infrastructure projects to the private sector and attracting participation from Iranians abroad and foreign investors as a significant issue that could help complete important unfinished projects. While this parliament member sees the presence of the private sector as a solution to the problems facing Iran's infrastructure projects, this sector currently has substantial debts owed by the government. The Iranian Road Police reported identifying 1,500 critical accident-prone points on the country's roads, with the commander of this agency stating, 'Our statistics show that over the past three years, 5,300 people have lost their lives at these points due to accidents.' For several years, since the presidency of Mahmoud Ahmadinejad, many contractors in infrastructure projects have refrained from continuing work in Iran due to unpaid debts from the Ministry of Roads and Urban Development and other government agencies, opting instead to engage in projects in other countries, particularly neighboring countries such as Azerbaijan and Iraq. The reduction of the country's infrastructure budget not only causes a crisis and unemployment in the private contracting sector but also creates significant problems such as the lack of road development, the construction of new roads, and the maintenance and care of existing roads—issues that can exacerbate road casualties during accidents. Experts believe that addressing these critical points and ensuring safety by converting them into standard roads requires defining infrastructure projects and incurring costs. Given the lack of liquidity and the reduction of the infrastructure budget in the year 1397, it seems unlikely that accidents and incidents can be easily prevented. Iran's road network spans 36,000 square kilometers, with 17,000 kilometers as highways and 2,400 kilometers as freeways. However, these roads are insufficient for connecting various parts of a country with an area of over 1,648,000 square kilometers.