TEHRAN – Iran’s draft budget for the next fiscal year (1405) has projected 340 trillion rials (about $680 million) in funding for infrastructure development in industrial parks, according to estimates by the Iran Small Industries and Industrial Parks Organization (ISIPO).
Based on the budget bill, approximately 183.42 trillion rials (about $360 million) will be required to complete remaining wastewater treatment plant projects, while around 8.41 trillion rials (about $16 million) has been projected for the development of technology and business services. An additional 340 trillion rials is estimated to address electricity shortages in industrial parks and zones.
A report by the Parliament Research Center highlighted ongoing constraints in financing infrastructure for industrial towns and zones. It noted that under Article 54 of the Law on Permanent Provisions of Development Plans and related financial regulations, the government is authorized to allocate annual budgetary support for state and non-state industrial parks, particularly for water, roads, electricity, gas and telecommunications up to the entrance of production units.
However, the report stated that the Ministry of Energy has not fully met its legal obligations due to insufficient allocations from the Planning and Budget Organization.
Under the Law on Removing Obstacles to the Development of the Electricity Industry, the Energy Ministry is required to dedicate a portion of revenues from electricity tariff adjustments for certain industries to upgrade transmission networks and supply power within industrial parks.
Despite the projected funding needs, capital expenditure allocations for the Iran Small Industries and Industrial Parks Organization in the 1405 draft budget remain unchanged compared with the previous year, limiting available resources for infrastructure and technical support programs.
The parliamentary research body also identified limited transparency in resource allocation and insufficient compensation mechanisms for production units affected by energy imbalances as weaknesses in the draft budget. It further pointed to the removal of funding sources tied to the Seventh Development Plan from subsidy reform revenues and the lack of additional tax incentives as signs of reduced policy support for the production sector.
EF/MA
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