Review of the 2025 National Budget Bill (Part 6): Note 2 – Domestic and Foreign Financing

Abstract
The subject of Note 2 in the 2025 budget bill is domestic and foreign financing. Reforming financing methods is one of the effective strategies to achieve the macroeconomic indicator targets set forth in the Seventh Five-Year Development Plan of the Islamic Republic of Iran. Indicators such as an annual economic growth rate of 8 percentage points and reducing the inflation rate to 9.5 percent by the final year of the plan are among these goals. Therefore, addressing the provisions of this note can help clarify the government’s financing methods and, to some extent, the financing mechanisms of the private sector. Malfunctions in government financing create grounds for financial dominance. Financial dominance is one of the driving forces behind liquidity growth and reduces the share of private sector enterprises in obtaining banking facilities. This note highlights important points regarding the use of intra-year credit documents backed by the balance of the treasury account with the Central Bank, setting a ceiling on the issuance of guarantees and commitments, conditioning the acceptance and settlement of government debts, authorizing the offsetting of receivables from the government and state-owned companies, allowing the government to issue guarantee bonds, and resolving the debts of organizations such as the Targeted Subsidies Organization, the State Trading Corporation, the Rural Cooperative Organization, and the Support Organization for Animal Husbandry to banks and the Central Bank. Some of the matters raised in this note directly or indirectly affect the degree of financial dominance of the government in the economy. The following report will review and analyze these provisions, as well as other provisions of this note that may not influence the level of financial dominance but affect the government’s financial management and executive operations.
Subjects

1.لایحه بودجه سال ۱۴۰۴ کل کشور(۶): تبصره «۲»- تامین مالی داخلی و خارجی