Iran Economy NewsIran Regime’s $60 Billion Expenses but Zero Percent Growth

Iran Regime’s $60 Billion Expenses but Zero Percent Growth

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The constant behavior of the Iranian regime is looting, impoverishing, and ruining the country. Sometimes, parts of this disaster have been exposed by the regime’s media.

In an interview on July 3 with the state-run broadcaster about the collapse of the country’s economy, Massoud Mir Kazemi, the regime’s head of Planning and Budget Organization, said, “The size of the economy has shrunk in the past years, and it is not advisable to continue with this situation. A fundamental revision should be made in the formulation of plans.”

He ridiculously claimed that the government’s economic apparatus, “does not move according to the plans made and all this has caused the decline of macroeconomic indicators.”

Apart from wasting 60 billion dollars, taken from the country’s development fund with the permission of the Supreme Leader, Kazemi admits that although “535 trillion rials of principal and interest of bonds were paid, the amount of investment reached minus 4.6%, was not even as much as capital depreciation.”

In another part of the interview, he laid bare the catastrophic situation, saying, “If the country experiences an economic growth of 8% in six consecutive years, the size of the economy will return to 2011 after this period.”

This is in a situation where the regime has no economic growth at all, and the economy is in a free fall. Following this revelation, the regime’s central bank said that until the beginning of 2022, “The amount of liquidity has reached 48,320 trillion rials, which represents a growth of 39%. Meanwhile, this index has grown by 40.6% compared to the end of 2020.”

The debt of state companies and institutions to the central bank during this period was equivalent to 132.2 trillion and 46.4 trillion rials, respectively, each of which faced a growth of 14.8 and 36.1 percent.

At the end of March 2022, the debt of banks and credit institutions to the central bank had reached 146.2 trillion rials with a growth of 24.9%. The amount of debt of specialized banks to the central bank is reported to be 49.2 trillion rials, which has increased by 9.7% compared to the end of 2020.

In a new confession, published by the state-run daily Khabar Online on July 3, about the corruption in the regime, Abdonnaser Hemmati, the regime’s former governor of the Central Bank said, “Despite the announcement of the tripling of oil revenues in 2021, the monetary base growth was 32% and equal to 145 trillion rials. But in fact, part of government financing was through indirect borrowing from the central bank.”

Examining the record of nearly one year of Raisi’s government shows that none of society’s classes can make ends meet and nearly all of them are living below the poverty line.

Eliminating the dependence of basic goods on the exchange rate, reducing the budget deficit and liquidity, lowering the exchange rate, building four million housing units, creating one million jobs, and controlling inflation were all hollow promises that Raisi had made after his ascension to the presidency.

What is worse is that the regime has added at least 12% to the official inflation rate by clumsily removing the preferred currency, which of course favors itself.

On July 3, in a surprising twist, the state-run daily Donya-e Eghtesad confessed that some of the regime’s officials had decided to leave the country due to the critical economic situation and corruption. They wrote, “Shortly after receiving the Pledge Medal, they were accused of embezzling billions and fled the country to Canada to escape from justice.”

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