Iran to cut spending to help sanctions-hit economy

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2012-07-25T21:47:36+05:00

TEHRAN (AFP) - Top Iranian government officials and lawmakers agreed in a meeting on Wednesday to budget cuts in a bid to shore up an economy struggling with Western sanctions and inflation, media reported.
"The conclusion of today's meeting between the economic officials of the government and lawmakers is to minimise the effects of sanctions," Economy Minister Shamseddin Hosseini said after the talks also involving oil, commerce and agriculture ministers, and the central bank chief, the official IRNA news agency reported.
He said "we agreed to cut budget spending ... and focus on domestic production."
Supreme leader Ayatollah Ali Khamenei stressed late Tuesday, in a meeting with the regime's senior figures, that Iran would not cede to the pressure exerted by the West over Tehran's disputed nuclear programme.
"Not only will we not revise our calculations, but we will continue on our path with greater confidence," he was quoted as saying by state media.
"Iran retreating (from its policies) regardless of justifications or excuses, or showing flexibility, will only embolden the enemy," he said.
The closed meeting came amid increasing news reports in Iran highlighting economic hardships, despite a directive two weeks ago from the culture and Islamic guidance ministry warning media to avoid reporting on the impact of the sanctions.

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