Editing Politics of Iran (section)

====Expenditures====
{{See also|Military budget of Iran|Iranian Economic Reform Plan}}
[[File:Socio-eco expenditures IRAN.jpg|thumb|right|National Budget Expenditures for Social and Economic Purposes, Fiscal Year 2004. Government spending as percent of total [[budget]] was 6% for [[Health care in Iran|health care]], 16% for [[Education in Iran|education]] and 8% for the [[Iranian Military Industry|military]] in the period 1992–2000 and contributed to an average annual [[inflation rate]] of 14 percent in the period 2000–2008.]]

Because of changes in the classification of budgetary figures, comparison of categories among different years is not possible. However, since the Iranian Revolution, the government's general budget payments have averaged:<ref name="lcweb2.loc.gov"/>
* 59 percent for social affairs,
* 17 percent for economic affairs,
* 15 percent for national defense, and
* 13 percent for general affairs.

Iran spent 22.5% of its 2003 national [[budget]] on [[social welfare]] programs, of which more than 50% covered pension costs.<ref name=CBI2>{{cite web |url = http://www.cbi.ir/showitem/6650.aspx |title = Annual Review |publisher = [[Central Bank of Iran]] |date = December 2009 |access-date = 10 May 2010 |archive-url = https://web.archive.org/web/20110618061133/http://www.cbi.ir/showitem/6650.aspx |archive-date = 18 June 2011 |url-status = live }}</ref>

For a breakdown of expenditures for social and economic purposes, see the attached chart.

In FY 2004, central government expenditures were divided as follows:<ref name="lcweb2.loc.gov"/>

* current expenditures, 59 percent, and
* capital expenditures, 32 percent.
* Other items (earmarked expenditures, foreign-exchange losses, coverage of liabilities of letters of credit, and net lending) accounted for the remainder.

Among current expenditures, wages and salaries accounted for 36 percent; subsidies and transfers to households accounted for 22 percent (not including ''indirect'' subsidies). Earmarked expenditures totaled 13 percent of the central government total. Between FY 2000 and FY 2004, total expenditures and net lending accounted for about 26 percent of GDP.<ref name="lcweb2.loc.gov"/> According to the Vice President for Parliamentary Affairs, [[Iranian Economic Reform Plan#Subsidy reform plan|Iran's subsidy reforms]] would save 20 percent of the country's budget.{{citation needed|date=July 2021}}

According to the head of the Department of Statistics of Iran,<ref>{{Cite web|url=http://amar.sci.org.ir/index_e.aspx|title=PUBLICATIONS INFORMATION BASE Statistical Centre of Iran|date=3 September 2011|archive-url=https://web.archive.org/web/20110903233009/http://amar.sci.org.ir/index_e.aspx |accessdate=20 October 2022|archive-date=3 September 2011 }}</ref> if the [[budget process|rules of budgeting]] were observed in this structure, the government could save at least 30 to 35 percent on its expenses.<ref>{{cite web|url=http://www.payvand.com/news/10/may/1316.html|title=Ten Million Iranians Under 'Absolute Poverty Line'|website=Payvand.com|date=20 March 2010|access-date=7 February 2012|archive-url=https://web.archive.org/web/20120105030221/http://www.payvand.com/news/10/may/1316.html|archive-date=5 January 2012|url-status=live}}</ref>

Contrary to the main objective and because of a lack in the implementation of the [[Iranian subsidy reform plan|subsidy reform plan]], the volume of Iranian subsidies given to its citizens on fossil fuel, which increased 42.2% in 2019, equals 15.3% of Iran's GDP and 16% of total global [[energy subsidies]].<ref>{{Cite web |url=https://financialtribune.com/articles/domestic-economy/98959/iran-largest-fuel-subsidizer-in-2018 |title=Iran: Largest Fuel Subsidizer in 2018 |date=16 July 2019 |access-date=22 July 2019 |archive-url=https://web.archive.org/web/20190722183308/https://financialtribune.com/articles/domestic-economy/98959/iran-largest-fuel-subsidizer-in-2018 |archive-date=22 July 2019 |url-status=live }}</ref><ref>{{Cite web |url=https://www.al-monitor.com/pulse/originals/2018/12/iran-fuel-subsidy-reform-gasoline-prices-budget-deficit.html |title=Why the Rouhani administration must eliminate energy subsidies - Al-Monitor: The Pulse of the Middle East |access-date=22 July 2019 |archive-url=https://web.archive.org/web/20190722193333/https://www.al-monitor.com/pulse/originals/2018/12/iran-fuel-subsidy-reform-gasoline-prices-budget-deficit.html |archive-date=22 July 2019 |url-status=live }}</ref> As a direct consequence, 
[[Taxation in Iran|Iranian taxpayers]] incur a loss of $3.3 billion annually because of [[2007 Gas Rationing Plan in Iran#Fuel smuggling|fuel smuggling]] (& not including other smuggled oil derivatives), equivalent to the "development budget" of Iran.<ref>{{Cite web |url=https://en.radiofarda.com/a/iran-fuel-gasoline-smuggling-sanctions/29783028.html |title=Why Fuel is Smuggled Out of Iran and Why No One Stops It |access-date=22 July 2019 |archive-url=https://web.archive.org/web/20190718220057/https://en.radiofarda.com/a/iran-fuel-gasoline-smuggling-sanctions/29783028.html |archive-date=18 July 2019 |url-status=live }}</ref>