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Financing 50 Percent of Development Budget Through Investment Attraction. Minister of Economic Affairs and Finance, Talking to ISNA: Enhancement of Private Sector Contribution to Development Activities
Minister of Economic Affairs and Finance gave the news of strengthening the private sector contribution to development activities, aiming at financing the budget for these projects.

As our correspondence reported, Seyed Shamseddin Hosseini, talking with economic correspondence of Iranian Student’s News Agency, ISNA, on the likelihood of development budget cuts in Iranian calendar year,1390, aiming at intensifying the efforts of government directors to attract private sector investment, domestic or foreign, stated: For the time being, we are moving in a direction that the private sector gets involved in the kinds of projects that wouldn’t participate in the past. For instance, participation in power plants, which further statistics and figures, may be collected from the Ministry of Power, two refineries were recently opened in Mazandaran which are fully owned by the private sector, while these kinds of projects used to be regarded as development projects.
 He continued: last year some power plant projects, exceeding 2 billion dollars, were approved, part of which financed by the private sector through financial facilities of the Foreign Currency Reserve account.
Minister of Economic Affairs and Finance, in response to a question on whether in the annual budget of 1390 the executive departments and the provinces are required to provide 50 percent of the budget for development projects through attracting investment, said: it will automatically be obligatory, since based on Article 44 of the constitution, investment and other activities of the government in plenty of sectors has been limited to 20 percent. For example, power plant projects, petrochemical firms and the like, which were regarded as infrastructure plans and development projects, will be implemented by the private sector without consuming public budget.
Hosseini stressed that the role of private sector should enhance, which is actually the message of Article 44.
As ISNA reports, it seems that in this year’s budget, only 50 percent of development projects are defined for the administrative departments and the rest of which  should be financed by foreign and domestic investment, that way development projects are no longer solely dependent on public budget. This item which also existed in last year’s budget, wasn’t approved, due to concern of members of parliament about a lack of financial resources for development projects.

Dec 9, 2010 18:41
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