Recent audits by Iran’s Supreme Audit Court of the 2023 budget show that the number of loss-making state-owned companies has reached 134, with the majority of losses attributable to six companies, including the “Subsidy Targeting Organization.”
“Budget Clearance” refers to the process of examining the compliance of government financial performance with the approved budget law.
According to Mizan News Agency, the official outlet of Iran’s judiciary, the budget law had anticipated losses for 17 state-owned companies. However, financial statements reveal that the number of loss-making companies has risen to 134, with their losses increasing nearly 17-fold.
According to the Supreme Audit Court, an entity under the parliament’s oversight, the bulk of these losses is concentrated in six state-owned companies, which alone account for approximately 80% of the total losses.
The Government Trading Corporation of Iran and the Subsidy Targeting Organization are the largest loss-making entities.
Next on the list are the Iranian Health Insurance Organization and the Thermal Power Holding Company.
The Islamic Republic of Iran Broadcasting (IRIB) and the Armed Forces Medical Services Organization are also among the six state-owned entities with the highest levels of losses.
The losses of state-funded entities stem from the imbalance between their expenditures and the allocated budget.
Experts attribute the budget overruns and losses of these companies to poor oversight of their operations, lack of accountability, and financial transparency.
These companies are largely managed by the Islamic Revolutionary Guard Corps (IRGC), with their primary mission being the suppression of the public and the prevention of growing protests.
