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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared UPDATE 4-Obama checks on Bernanke prospects, senators say secure 23 Jan 2010 Sandra Bullock hushes Oscar talk 1:08am EST Tablet launch, earnings mean big week for Apple 22 Jan 2010 China says it needs no Internet lessons from U.S. 23 Jan 2010 U.S. to appeal dismissal of Blackwater charges: Biden 23 Jan 2010 Human "bed-warmers" at Holiday Inn 21 Jan 2010 Tanker collision sends oil into Texas waterway 12:31am EST China says it needs no Internet lessons from U.S. 23 Jan 2010 Human "bed-warmers" at Holiday Inn 22 Jan 2010 Salt reduction could save 92,000 lives a year 21 Jan 2010 Ahmadinejad says new budget less dependent on oil Parisa Hafezi TEHRAN Sun Jan 24, 2010 8:25am EST Related News Iran to issue 5 bln euros in bonds for energy sector 8:03am EST Russia warns against rushing to Iran sanctions Fri, Jan 22 2010 Iran plans to lop off zeros from currency: Ahmadinejad Wed, Jan 20 2010 Iran spurns nuclear fuel deal in writing: diplomats Tue, Jan 19 2010 Major powers seen meeting on Iran this week Mon, Jan 11 2010 TEHRAN (Reuters) - Iranian President Mahmoud Ahmadinejad said on Sunday the national budget for 2010/11 would lessen reliance on oil revenues, a move aimed at making the Islamic state less vulnerable to any Western sanctions. World Ahmadinejad, who faces opposition protests seven months after his re-election, also said Iran "will have good news over production of 20 percent enriched fuel in February." "This news will make the Iranian nation and other independent nations happy," he told reporters in parliament after presenting the budget to parliament. Critics accuse Ahmadinejad of squandering the windfall oil revenue Iran earned when crude prices soared in the first half of 2008, leaving it more vulnerable now that it faces possible U.N. sanctions over its nuclear work. "We have paid special attention to reducing dependence on oil income and increasing non-oil revenue," Ahmadinejad told parliament in a speech broadcast live on state radio. A senior official said the world's fifth-largest oil producer's budget for the next Iranian year, which starts on March 21, was based on an oil price of $60 per barrel, much higher than last year's $37.5 per barrel. "The budget is based on around $60 per barrel," said Rahim Membini, the president's deputy in charge of Iran's budget affairs, the official IRNA news agency reported. Oil prices fell to four-week lows on Friday, with U.S. crude settling at $74.54 per barrel and ICE Brent crude at $72.83. Prices are at roughly half the peak seen in July 2008 but double the level oil had sunk to by the end of that year. NEW BUDGET TRANSPARENT The United States and its European allies plan to impose further sanctions on Iran after its failure to meet a December 31 U.S. deadline for accepting a U.N.-brokered proposal to send its uranium abroad for processing. Tehran has sought amendments to the deal, under which it would transfer stocks of low-enriched uranium (LEU) abroad and receive fuel in return for a medical research reactor. Tehran says it could produce the fuel itself if it is not able to obtain it from abroad. The West says Iran is trying to develop nuclear weapons under the cover of its civilian atomic program. Iran denies the claim, saying it needs the technology to generate power. The U.N. Security Council has imposed three rounds of sanctions on Iran since 2006 for Tehran's failure to suspend its sensitive enrichment work. Ahmadinejad said the new budget was "transparent, integrated and flexible," but did not offer any overall figures. The semi-official Mehr news agency said the allocated budget for the next Iranian year was $368 billion. To ease the impact of sanctions on, for example, gasoline imports, parliament approved in December a bill to phase out energy and food subsidies. By carrying out the plan, the government will save up to $100 billion annually from subsidies on gasoline, natural gas, electricity, water, food, health and education. "The inflation will drop to five percent by implementation of the subsidy bill," Ahmadinejad said. The official inflation rate in Iran stands around 13 percent. The plan is expected to be implemented in the next Iranian year. Critics say the plan will increase inflation and may ignite social unrest, when the establishment still faces street protests after the June 12 vote that plunged the country of over 70 million into its worst unrest in the past 30 years. (Additional reporting by Hashem Kalantari, Editing by Diana Abdallah) World More from Reuters White House confident Bernanke to be confirmed WASHINGTON (Reuters) - White House senior advisers voiced confidence Sunday that Federal Reserve Chairman Ben Bernanke would be confirmed by the Senate for a second term. Bin Laden claims responsibility for U.S. plane attack Afghanistan delays parliament poll U.S. to appeal dismissal of Blackwater charges: Biden Obama retools presidency amid turmoil Iceland seeks international mediation on Icesave: report » More Top News Tackling the post-crisis world The global economic recovery, China, green business and the future of finance will take the spotlight when world economic leaders meet in Davos next week. Full Coverage SAP boss: Take carbon lead Video: China's green push Davos 2010 DLD 2010 Conference Live: A global melting pot of ideas Follow live coverage of the DLD in Munich, Germany, a gathering of 800 entrepreneurs, investors, philanthropists, scientists, artists and creative minds from around the world. Full Article Design, Life, Design 2010 in Munich MediaFile © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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