EghtesadOnline: The total projected income of eight Iranian state-owned banks, plus the Central Bank of Iran, has been put at 845.2 trillion rials ($20.09 billion) in the budget bill submitted to the parliament by President Hassan Rouhani, indicating an annual rise of more than 86 trillion rials ($2.04 billion) in revenue for the fiscal 2018-19.
These banks include Bank Melli Iran, Bank Sepah, Bank Keshavarzi (AgriBank), Bank of Industry and Mine, Export Development Bank of Iran, Post Bank of Iran, Tose'e Ta'avon Bank (Cooperatives Development Bank) and Bank Maskan–the agent bank of the housing sector.
The expenses of these banks, however, have been predicted to match their incomes at 820.2 trillion rials ($19.49 billion) in the annual budget bill.
President Rouhani submitted the budget on Sunday for the next fiscal year that begins on March 21, 2018. The plan strives to cut spending and increase the share of tax revenues as opposed to oil income, which has historically propped up the Iranian economy, according to Financial Tribune.
BMI, Iran's biggest bank by assets, predictably attracts the main bulk of the incomes and expenses at 316.8 trillion rials ($7.53 billion) and 316.3 trillion rials ($7.518 billion) respectively. The lender will have to pay about 125 billion rials ($2.97 million) in taxes in the next fiscal year.
The central bank, on the other hand, is expected to generate 67.4 trillion rials ($1.602 billion) in incomes against its expenses that are expected to reach 47.3 trillion rials ($1.12 billion). The monetary policymaker is expected to pay out just north of 5 trillion rials ($118.8 million) in taxes.
Ministry of Cooperatives, Labor and Social Welfare and the Ministry of Communications and Information Technology, respectively in charge of Cooperatives Development Bank and Post Bank, have been granted permission to increase the capitals of their respective banks by 5 trillion rials ($118.8 million) by tapping into their immovable properties after obtaining the green light from the Cabinet.
As part of the next year's budget, it has been projected that the Central Insurance of Iran, the sector's sole regulatory body and its biggest reinsurer, will rake in 89.1 trillion rials ($2.11 billion) in incomes.
That is while its expenses will also remain close to its incomes, standing at 88.4 trillion rials ($2.101 billion) and it is not to pay any taxes.
Iran Insurance Company, the state-owned insurer that single-handedly collects around 60% of all insurance premiums, is expected to generate 133.6 trillion rials ($3.17 billion) in income, spend 133.3 trillion rials ($3.168 billion) and pay zero taxes.
Incomes for the Audit Organization of Iran have been predicted at 2.108 trillion rials ($50.1 million) for the fiscal 2018-19 while its expenses are expected to stand at 2.104 trillion rials ($50 million).
One of the clauses of the proposed budget bill concerns the cap up to which the administration will be allowed to attract foreign finance.
The clause notes that in accordance with a directive approved by the Expediency Council late last year in March 2017, "the ceiling of foreign funds for Iranian projects has been set at $30 billion in addition to any untapped resources from the year before" for the fiscal 2018-19 .
The bill also cements the authority held by the Ministry of Economic Affairs and Finance to issue official guarantees within one month for projects approved to attract foreign funds after it received permission from the Cabinet.
All projects belonging to the private sector, cooperatives and non-government public entities that meet the criteria will be able to employ foreign funds while interests will be paid from the revenues generated by the projects.