Iran President: "Despite US Sanctions, 20% of This Year's Budget Allocated to COVID-19"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Iranian President Hassan Rouhani announced on the 28th (local time) that 20% of this year's budget will be allocated to COVID-19 prevention and support for low-income citizens and businesses.

According to local media such as Mehr News, President Rouhani said at the National COVID-19 Task Force meeting held that day, "Iran is facing illegal US sanctions, but we have allocated 20% of this year's budget to respond to COVID-19," adding, "The world will be surprised that a sanctioned country can do this."

He explained that the allocated budget will mainly be spent on supporting low-income groups. Calculated at the unofficial market exchange rate, the budget allocated this time amounts to about 6.5 billion USD (approximately 8 trillion KRW). Iran is currently experiencing financial difficulties due to US sanctions and the decline in oil prices.

President Rouhani also emphasized, "Hospitals and beds are well equipped, and medical staff have strong mental resilience." He added that 90% of COVID-19 related costs will be covered by the national health insurance system.

Despite difficulties caused by US sanctions, the Iranian government is seeking its own measures to resolve the COVID-19 crisis. Earlier, the Iranian government requested approval from Supreme Leader Ayatollah Khamenei to withdraw 1 billion USD from the sovereign wealth fund, which is constitutionally required to deposit 30% of oil export revenues, to use as funds to combat the spread of COVID-19.

Additionally, on the 12th, the Central Bank of Iran sent a letter to the International Monetary Fund (IMF) requesting emergency funding of 5 billion USD related to the COVID-19 crisis. The IMF estimated that Iran's foreign currency reserves decreased by 16 billion USD over the past year, down to 70 billion USD.

As of noon on the 28th, the Iranian Ministry of Health reported that confirmed COVID-19 cases increased by 3,076 from the previous day, reaching 35,408. This is the first time that confirmed cases in Iran have increased by more than 3,000 in a single day. COVID-19 deaths increased by 139 from the previous day, totaling 2,517.