21 October 2014 - 17:02
  • News Code: 227267
Falling Prices Shows Symptom of Illness

TEHRAN Oct 21 (Shana)-- Minister of Economic Affairs and Finance Ali Tayyebnia said he assesses falling oil prices positive, adding it shows that the economy of the country faces and illness that should be cured.

He said as sanctions showed that the country should think seriously about the economic problems and then pursue Economy of Resistance principles, now that oil prices are falling it should get the message because this is a symptom that shows the country should cure its economy even though it is not an easy job and needs cooperation from people and the government.
He expressed hope the falling oil prices will not lead to budget deficit, stating the country receives its oil revenue within a four or five month period after selling oil cargoes.
Responding to a question on whether the government should substitute oil revenues with other earnings, Tayyebnia said: "The country will witness the consequences of falling oil prices several months later so the country is determined to embark on adequate planning for the future.
In order to cope with budget deficit, the minister said: "We should not only reduce expenditures but collect more money from other sectors of the economy including taxes which play a pivotal role in the Economy of Resistance principles.
“We should act in a way that we are able to neutralize the negative effects of falling oil prices on our economy”, the minister noted.  
In response to a question on forecasting the price of oil in next year’s fiscal year budget, Tayyebnia said a final decision on the issue has yet to be made.
News Code 227267

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