Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

Rational oil price in draft budget will avert crisis

Posted on January 18, 2015

TEHRAN, Jan. 18 (PNA/IRNA) — An English-language paper on Sunday reflecting on the declining oil prices, wrote that if oil rates are set at US$ 40, no economic upheaval will threaten our country.

“Iran Daily” was commenting on the collapse of oil prices which has prompted the government to announce plans for adjusting the oil price on which the draft budget bill of the next fiscal year (starting March 2015) is based.

Economic Affairs and Finance Minister Ali Tayyebnia said the government will lower oil prices to US$ 40, which had been set at US$ 72 in the budget bill submitted to the legislature.

Such an approach is rational and will forestall an economic crisis. Besides, it will help stabilize prices, particularly those in the forex market, praised the paper adding that the government should incorporate the change before the Majlis Joint Commission finalizes the budget bill’s provisions.

When the oil prices are reconsidered, the administration will have to curtail spending, particularly the development budget, it suggested, adding that unless expenditures are balanced by revenues, the government will face numerous problems.

As a result, the administration should adopt approaches to forestall these problems, recommended the paper.

Firstly, the government should explore ways to boost exports. If the revenues projected in the budget bill remain elusive, the inflation rate will rise.

Likewise, efforts made by President Hassan Rouhani’s government to curb inflation will be wasted, it said.

Second, the administration should slash the development budget instead of current expenditures to make up its budget deficit. This is because the monthly payments of civil servants are secured by current expenditures, it added.

Last but not the least, the government could double oil sales. Although a higher supply will boost state revenues, it will exacerbate the situation because oil prices will plunge further. Hence, such an approach seems illogical, it pointed out.

Majlis Joint Commission recommends oil prices be set at US$ 45 to US$ 50, while urging the government to reduce its development budget and other spendings to avoid the budget deficit, suggested the daily.

Nonetheless, the reduction of current expenditures could be useful, provided the payments of civil servants are not slashed.

Because of the drastic decline in oil prices, the ground realities should be incorporated into the budget bill, concluded the paper. (PNA/IRNA)

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme