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Director of Planning and Budget of the Secretariat of the Supreme Council:

Free zones are managed with an autonomous budget and independent of the government


The Director of Planning and Budget of the Secretariat of the Supreme Council of Free and Special Economic Zones said: "One of the bright points of the budget of free zone organizations is that it has no dependence on the state budget and unlike the


 

The Director of Planning and Budget of the Secretariat of the Supreme Council of Free and Special Economic Zones said: "One of the bright points of the budget of free zone organizations is that it has no dependence on the state budget and unlike the executive organs of the country has no dependence on the state budget.
Speaking to Eqtesad24, Aghasizadeh said that the budget of 1400 free zones is being compiled and integrated in the Secretariat of the Supreme Council of Free and Special Economic Zones. According to the basic rules of free and trade zones, free zone organizations propose budgets; The budget is then reviewed and consolidated by the Planning and Budget Management of the Secretariat and in accordance with the Budget Notification Instruction. He added: "After the end of the review and consolidation, the budget of the free zone organizations will be discussed and supplemented in the form of a selected committee and a working group of the High Council of Free Zones." Finally, the budget for 1400 is submitted to the Supreme Council of Free Zone Organizations, where it is notified after approval. It is clear that in this process, before submitting the budget to the High Council of Free Zones, the working group and the elected committee also play a role in this process. 
The Director of Planning and Budget of the Secretariat of the Supreme Council of Free and Special Economic Zones continued: So far, the Planning and Budget Management of the Secretariat of the Supreme Council of Free Zones has reviewed the proposed budget of 6 free zone organizations. The proposed budget of the Chabahar Free Zone Organization will also be considered in this week's meetings. After completing the studies, we will consolidate the budget of the free zones from next week and take the next steps; Therefore, the budget consolidation of 1400 free zones has not been completed yet.

 

Aghasizadeh, stating that the budget of free zone organizations has its own format and format, said: "This format has been agreed and understood over the past years and is now the basis for compiling the annual budget." This template, which has been agreed upon and finalized over time, has two parts. The first part of the current budget includes revenues and expenditures. The second part also includes the capital budget in which resources and expenditures are mentioned. Macro-budget tables are prepared in such a format and format. In addition, a single article and a set of notes are included in the budget approval of the free zone organizations, which is related to the specific measures and operational methods of the budget.
Free zone budgeting has its own characteristics. Since the free zones are not government-dependent on the budget and make development plans based on their revenues, in recent months free zone organizations have been conducting budget assessments for the year 1400 and reporting the results to the Secretariat of the High Council of Free Zones. And special economic references. 

 

Aghasizadeh, stating that the budget of free zone organizations has its own format and format, said: "This format has been agreed and understood over the past years and is now the basis for compiling the annual budget." This template, which has been agreed upon and finalized over time, has two parts. The first part of the current budget includes revenues and expenditures. The second part also includes the capital budget in which resources and expenditures are mentioned. Macro-budget tables are prepared in such a format and format. In addition, a single article and a set of notes are included in the budget approval of the free zone organizations, which is related to the specific measures and operational methods of the budget.
He clarified about the methods of providing budget resources for 1400 free and special economic zones: One of the bright points of the budget of free zone organizations is that it has no dependence on the government budget and unlike the executive organs of the country, free zone organizations have no dependence on government budget. In other words, free zones are defined in terms of budget, autonomous and independent.

 

The Director of Planning and Budget of the Secretariat of the Supreme Council of Free and Special Economic Zones continued: According to their laws, free zone organizations are independent organizations that have a number of revenues including warehousing services, port services, entry and exit of goods and passengers, municipal services and .... From these revenues, expenses are covered and from resources, expenses are covered.
Regarding the social costs and regional development of free zone organizations, Aghasizadeh explained that although the government does not provide any revenue assistance to free zones, free zone organizations are committed to social, cultural, and deprivation costs. Of course, we also have rules that free zone organizations are required to pay one percent to the region's support institutions through the treasury, or by law they can provide assistance to their own or neighboring areas, which are also included in the budget. 
He continued: "An important part of the activities of the free zone organizations, which is also reflected in their budgets, are the efforts that are made for regional development or social development." In the budget, we have specifically defined a heading for the cultural and social sphere, and the organizations of the free zones allocate it to the cultural and social sphere in the form of budget figures. Free zone organizations are doing well in helping build schools and education, mosques, culture, health, and so on.

 

Free Zone budget resources
Director of Planning and Budget of the Secretariat of the Supreme Council of Free and Special Economic Zones regarding revenue sources and funding portfolio added: "One of our budget sources is the import duties of commercial goods that are received through the free zone to the mainland." The facilities and papers that regional organizations pursue with the banking system and within the framework of the country's laws are another source of budget for free zones. Other resources include partnerships with the private sector, proper land use, and the sale of buildings and facilities. These are the main sources of budget for free zones.

 

Aghasizadeh pointed out: The resources obtained from the facilities and the issuance of securities (sukuk, partnership, etc.) are among the ways of providing resources that have also been considered in the free zones. These are somehow related to the capital market. Of course, we must keep in mind that our resource portfolio depends on the nature of the region's development projects. In the sense that we have to pay attention to the fact that some projects are financed from internal sources; Some other projects have the possibility to be financed through other means, such as securities (participation, purchase of debt and sukuk) and for some other projects, they have the possibility to be financed through internal and external facilities.
He added: "The budget expenditures of the free zone organizations mainly include construction projects, which means that the budget resources are allocated only to budget expenditures, an important part of which is construction projects." Our applications in construction projects in the form of defined areas including transportation and transit, local community and public services, industry and mining and technical and engineering services, tourism, trade and commercial services, agriculture and animal husbandry, advanced technologies and capacity development Scientific and research is defined.





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