MEK Iran: Budget for 2022–2023 Neglects High Unemployment
As a result of the Iranian economy’s near-collapse, the country’s main problems include poor output rates and massive unemployment. The country’s 2022-2023 budget, which was released last month, appears to have completely ignored both considerations.Ebrahim Raisi, the president of the Iranian regime, released his government’s budget for the Persian year 1401 (which begins in March 2022), claiming that it will result in an increase of 8% in economic growth. On the other hand, regime experts have admitted that his budget will exacerbate the poverty that currently exists among Iranians.
There is a cut in salaries in line with rising inflation
The state-run Setar-e Sobh daily reported last month that the Ministry of Cooperatives, Labour, and Social Welfare predicted in 2019 that the number of Iranians living in poverty would reach 30 million by 2021. Iran’s oil exports (1.2 BPD); a rise in taxes; the sale of government securities and bonds; a cut in salaries in line with rising inflation; and the limited income generated from petrochemical and steel exports are among the resources for the regime’s 2022-2023 budget.
Due to international sanctions and crippled infrastructure in Iran’s oil sector, selling oil, particularly 1.2 BPD, is impossible. Even selling oil at $60 per barrel would not be enough to cover the regime’s costs. The oil market has experienced a major drop and fluctuation as a result of the Covid-19 outbreak. The balanced budget, according to Iran’s state media, is 15,052 trillion rials, or $50.2 billion at a free-market exchange rate of 300,000 rials per dollar.
The IRGC has a strong grip on Iran’s economy
The regime’s military organizations, including the Army and the Islamic Revolutionary Guard Corps (IRGC), have received the lion’s share of the budget, as expected. The IRGC has a strong grip on Iran’s economy. Several institutions controlled by the regime’s Supreme Leader Ali Khamenei are also expected to receive a sizable portion of the budget. Along with the resources stated in the budget bill, the production of banknotes, service earnings, cryptocurrency extraction, and capital market income are some of the sources of money that the government has been less forthright about.
What is clear from the new budget law is that the regime has no intention to enhance domestic production, including agricultural, livestock, and industrial production rates. It’s worth emphasizing that producing banknotes will improve the country’s liquidity. Because the regime refuses to increase production and employment, inflation will surge.
It is predicted that by 2022, the societal divide will grow more
This circumstance is what has pushed the government to the bottom of the global entrepreneurship rankings, ranking 41st out of 45 nations in the Global Entrepreneurship Watch (GEM) consortium’s 2020 report. The Iranian people and their aspirations are noticeably absent from the budget bill, despite the catastrophic socio-economic problems they face on a daily basis.” The least attention has been paid to the welfare of the family in the country’s budget,” the state-run ILNA News Agency said on December 13, 2021.
They predicted that by 2022, the societal divide will grow even more, as well as a rise in “relative poverty and absolute poverty.”In a word, the Iranian regime has increased taxes, banknote printing, inflation, and hiked prices of basic items and necessary staples in order to dig deeper into people’s pockets.