Iran approves new $298 bn budget

TEHRAN: Iran's official news agency says the parliament has approved the broad outlines of a $298 billion budget for the 2009-2010 Iranian calendar year beginning March 31.

Sunday's report says 148 of the 237 lawmakers present supported the budget President Mahmoud Ahmadinejad submitted in January based on an oil price of $37.50 per barrel.

While lawmakers approved the general figure, the breakdown will be discussed over the next few weeks. The budget, which is about $30 billion higher than last year, includes some $210 billion for public sector companies.

Iran depends on oil for 80 per cent of its foreign revenues. But crude's sharp drop from mid-2008 highs of USD 147 per barrel has led to talk of politically unpopular moves like cutting fuel subsidies.