The draft text says that reducing unemployment and increasing non-oil exports are key target areas. National unemployment officially stands at 12.8 per cent, but is thought to be significantly higher. The budget predicts that about 754,000 people will enter the job market in the new financial year, compared to 653,000 this year. He said that the government would follow its policy of privatisation and encouraging foreign direct investment. Non-oil exports are forecast to rise $7,700 million – a 20 per cent increase. The government also aims ‘to decrease the current inflation level of 16.6 per cent to less than 15 per cent,’ he said.

Despite moves to liberalise Iran’s economy in the coming year, the government will continue to subsidise basic goods and services to the tune of $4,700 million, a rise of 9.4 per cent from this year.

Local press reported that the government has based its predictions on a conservative oil price of $19.5.