Second Economic Socio-Economic and Cultural Plan

General aims and orientations

1 - Emphasis on macro economic management.

In the Second Plan financial and monetary means and leverage will be utilized more broadly to maintain zero borrowing, increase the contribution of income taxes, and control money supply. By using these means, the Second Plan aims to drop the annual rate of inflation to about 12 per cent.

The fact that government institutions have been the major user of banking credits has mean that the bulk of these assets were not available to the public and the private sector. Therefore, public sector's investments, which are supplied through people's assets, would be supplied by means of bonds and securities instead of banking assets.

2 - Paying more attention to organization of various markets.

Currently, there exist no organized and competitive markets for numerous goods and services. The market for many commodities is concentrated in the hands of a few state or private enterprises. It is necessary to diminish this concentration and to create prospect for a broader competition. In some sectors the existing markets must also develop. Among them capital and stock markets and the so-called "commodity market" can be mentioned. In this relation, it is necessary to improve the labour market, as it regards regulations and methods, so as to encourage investors to employ more Iranian workers instead of foreign workers. Moreover, the Second Plan must provide conditions for job creation and create new jobs.

3 - Increasing efficiency in utilization of general resources at the public level.

In the second plan it is of great importance to apply restrict financial discipline and to economize the utilization of resources allocated to development projects, and the resources of state enterprises. It is also necessary to evaluation management on the basis of its increased efficiency and its optimum utilization of the resources.

This does not lead to decline of activities in development projects or current affairs of the state establishments or enterprises. Instead it requires double efforts for best possible exploitation of any penny of government's resources. Therefore, it is necessary to plan and organize activities in a way that resources are concentrated on accelerating work progression, completion of projects and making them operational, instead of starting various, scattered projects which proceed slowly.

4. The current administrative structure of government organizations are not compatible with country's need for fast growth in socio-economic and cultural spheres.

In this regard two major areas will be focused on: First, the plan will aim at reforming the executive-administrative system of the country. To do that efforts will be made to create administrative discipline and efficient organization, establish compatibility among internal units, eliminate parallel and redundant bodies, implement strict supervision on government organizations, avert concentration of affairs in Tehran, eliminate complicated bureaucracy and employ simple mechanism for carrying out activities and deal with offenders. Second, In appointing management, besides their convictions, more attention will be paid to their personal abilities as well. Thus conditions will be provided in which new and young talents will be identified and developed through a process of education, evaluation and promotion, thereby a vast number of managers which the country lacks will be produced.

These four principles could be categorized as "policy of economic stability". By "economic stability" It is not meant to fix prices or to execute government's policies in a bureaucratic manner. Rather, it means to establish order in principal economic activities, to make society efficient in its usage of resources for socio-economic and cultural development of the country, and to exercise a strict supervision over the execution of plans. This in return would insure price stability, investment, and continuation of production activities. It helps to sustain the achievements of the First Plan, continuation of economic adjustment policies, and to achieve the goals of development activities of the Second Plan.

5 - Insuring sound socio-economic and cultural growth and development of the country through concentration on inner strength of economic system and creation of mechanisms aimed at reinforcing strength of the internal economic system instead of relying on inductive growth resulted from oil revenues.

In the Second Plan attention will also be paid to finding means to establish "social justice" and "cultural development". These means are as follows:

1 - Development In the second Plan, along with optimizing the utilization of resources Of Social Sector in economic activities, the government will try to direct and

channelize the major part of resources to social sector. So as to give sufficient resources to social affairs, such as, culture, public education, health care, higher education and research, physical education, and general affairs, such as, internal law and order and judicial affairs.

2 - Considerations Regarding Social Justice In the Second Plan adequate legal and executive provision will be provided in order to establish fair conditions for trade and transaction. Another point under consideration is to provide legal

and executive conditions for protection of the final consumer.

3 - Special attention to Cultural Activities In the Second economic, social and cultural development plan, special attention will be paid to cultural activities. In this regard, major efforts will be made to develop Islamic culture, such as, growth of morality in the society, acquiring Islamic values, establishing order, respect for law, work ethic, devotion and self-sacrifice, preventing over-consumption and waste, guiding people to a more 'scrupulous practice of Islamic teachings, and development of understanding and reading of Quran. These efforts will be organized in a way which along with economic success, cultural progress is also achieved, so as to grounds for flowering of Islamic culture is also provided.

In relation to social justice following objectives will be stressed:

Improving the general conditions of people's life. Among other's, improvement of the distribution of income and wealth.

Strengthening the social welfare system, resources for which will be stipulated in the general budget, for payment of allowance to vulnerable sections, expansion of social security system and universal health care system, and payment of premium for universal health care on behalf of vulnerable sections.

Applying a progressive tax rate system, on the principle that the more one benefits from public services, the higher will be his contribution for covering the cost of providing such services.

Expansion of judicial security and providing economic security.

Elimination of windfall revenues, and incomes resulted from special privileges.

Channelizing government's transfer aid in the general budget in the form of subsidies for goods and services, such as, fuel, water, electricity, education, and health care to families with low annual incomes and in need.

Observing considerations regarding eradication of deprivation and elimination of regional disparity.

PRINCIPAL AND FUNDAMENTAL ASSUMPTIONS

No unforeseen event will take place, such as, war, economic or trade sanctions, or any international crisis which would change the economic state drastically. It is self-evident that if such mishap occurs, emergency provisions must be adopted.

The level of internal consumption, export and the price of crude oil will remain as in table 1.

The exchange rate is taken as floating.

The volume of country's foreign obligations are reduced at the final years of the Plan.

Government's general budget in the whole period is assumed to be balanced. Therefore, government's borrowing from the Central Bank will remain nil.

It is postulated that contribution of taxes will increase.

It is postulated that development of expenditure will increase to more than 42% of the total budget by the end of the Plan.

PRINCIPAL POLICIES

Foreign Trade In drawing policies regarding foreign trade following objectives

will be considered: To create favourable conditions in which country's comparative advantage will flourish at the international level and its products become competitive with foreign ones, and thereby create conditions for quantitative and qualitative development of domestic technology, innovation and continuous effort to raise efficiency, and finally the overall interests of the system will be also considered.

Foreign Trade reform Policies n A supervised floating system on the basis of following principles will govern foreign currency mechanism:

Exchange rate parity.

Abolition of currency agreement.

Ability to exchange country's currency with foreign currencies on the basis of floating exchange rate.

Elimination of cumbersome custom policies and superfluous bureaucratic procedures. Simplification of the custom procedures for relating import and export goods. Thus, only those regulations necessary for quarantine or quality control will remain in practice (such as, quality control of medicine, agricultural seeds, or quarantine of live stock). Controls regarding type of commodity will be limited only to commodities on religious or legal grounds.

Customary trade policies will be implemented to regulate foreign trade in order to obtain special advantages and confront restrictions posed by other countries.

Conditions for entering trade as a profession will be simplified for those interested, and monopoly will be removed.

Tariffs will be determined on the basis of reasonable protection of domestic producers and consumers and comparative advantage for different categories of commodities, in a way which is easy to understand for both exporter, importer and custom officer. These protection will be reasonable in accordance with world conditions, so as to create possibilities for international competition and application of world standards in domestic production, on the basis of tariff changes occurring in international arena. In regard to tariffs and custom policies following points will be considered:

Different governmental fees related to import and export of goods, such as, custom duties, trade profits, registration of orders and etc. will be concentrated and paid as one.

The change of custom regulations from the old system (Brussels) to the new system (coordinated system) will be pursued.

Anti-dumping regulations of a tariff or non-tariff nature will be applied against unfavourable actions of trade partners.

Steps will be taken to eliminate special tariff exemption. Instead necessary credits will be accredited to those executive organizations which are unable to meet above costs through offering their goods and services.

Necessary conditions will be created to expand electronic information exchange on the basis of world progress in this field.

The country will be become member of international and regional organizations and unions in order to obtain more advantages in trading with the world.

Public Activities n Activating real and legal persons in foreign trade under the

in Foreign Trade: supervision of the government and in the framework of

export and import law and removing monopoly in import of goods.

Encouraging trade associations, such as, unions, councils, syndicates to participate in export in order to expand export of commodities and services, and preventing unwholesome competition which ruins export of commodities.

Protection of export of non-oil commodities by making information available, establishing, if necessary, export incentives, return of payments of custom duties and fees of export goods, creation of export guarantee found, and assisting with advertisement of domestic goods, through exhibitions, stock market for export commodities, and giving political and diplomatic support.

Securing international trust towards export commodities by observing quality standards, drafting regulations on the basis of which exporters will be able to export commodities with their own logo or buyer's logo, without any damage to credibility of commodities.

Reviewing country's commercial organization, and export - import regulations in order to encourage, expand, and strengthen commercial affairs in country's representatives abroad.

Continuing policy of fostering free trade zones only for the purpose of industrial and export goals, and transit of commodities.

MONEY, CREDIT AND CAPITAL

Money Market n Banking facilities will be available to applicants, purely on economic, technical, and financial basis. There would be no favoritism for state or private companies. If necessary, and in order to help state or private companies, part of banking profits will be returned to them from the general budget.

Issuance of bonds as an efficient method in monetary and financial policy will be taken into consideration. In this respect, necessary grounds will be provided to utilize new financial devices, such as, investment and short term bonds, which enjoy public interest.

To review laws, regulations, and instructions related to activities of financial organizations in money and capital market, in a way that they correspond to the new conditions arising from domestic and international changes.

To rationalize rates of profit in banking system, in a way which by stabilizing real rate of yield to bank deposits and rate of yield to banking services, it would provide optimization of allocation of Rial assets, and at the same time encourage saving.

In order to assist economic development and technological progress, and creating regional development balance, specialized - development banks will be corresponded to government's socio- economic and cultural development aims. Financial assets deficiency will be met by the help of private sector.

To try to co-operate with private sector and co-operatives in offering banking services, developing and strengthening activities of non-banking credit institutions and providing the requirements for evolving banking system and to bring it under control and supervision of Central Bank.

Capital Market n To increase efficiency of capital market, the market, that is,

its organizations and supervising institution, will be organized in a way that while enjoying sufficient independence, it is able to fulfil its real function in providing long term resources. Following fields will be given special attention:

To create new financial devices, such as, deposits, investment, bonds in capital market to meet all needs and to cover different risks.

To develop and foster securities stock market by improving and expanding information net work and offering timely information to people about conditions of accepted companies, paying attention to principle of sale and supply and demand mechanism in market.

To provide suitable and secure conditions for people's investment.

GOVERNMENT

General Budget

Income Policies Government's income policies are designed in a way that with

government's curtailment it would be possible to supply its current expenses by earnings from income taxes.

To increase contribution of direct taxing in tax earnings of the country.

Gradual elimination of tax exemption granted to different sectors, certain activities and organizations, modification of prices, allocation of budget, reviewing tax system on the basis of defining basic income.

Rational rectification and completion of tax regulations to establish indirect tax classification on the basis of commodity's value.

To establish new and non-customary methods in tax system with the aim of increasing tax earnings.

To review methods and organization of tax collection with the aim of modernizing and optimizing the tax system and minimizing the time spent in collection of tax, particularly direct taxes.

Continuation of tax deduction policy to encourage investment.

To increase possibilities for making earnings for provincial bodies. Expansion of their competence by certain accounts of the treasury in provinces.

Expenditure Policy n To establish a logical balance between earnings and expenses n To concentrate budget classifications and categories.

Current expenses.

To regulate budget of government enterprises in the framework of Second Plan.

To cut the current budget of those sections under economic affairs, by reducing government's activities for taking charge.

To establish a logical relation between credits of earning-creating executive bodies on the basis of their earnings, with the aim of increasing efficiency and preventing irregular expansion of their organization.

To transfer part of service activities of government in the realm of social services to non-governmental sector and releasing government's financial resources to improve the quality of government services.

To determine subsidies, government's aid, and its transfer income in different independent budget classifications.

Development Expenses n To evaluate and select new projects on economic - technical grounds, except those plans with special justifications.

To prioritize unfinished projects which enjoy economic - technical justification, and to expedite making them operational.

To modify the executive organization of projects whose real progress is hindered due to absence of an appropriate executive organization.

To pay attention to services and productions resulted from increase in rate of operationality, in accepting new projects.

To create and apply a system for selecting and evaluating executive managers of development projects.

Total organization of operational system to take over and supervise operational affairs according to schedule and in the capacity stipulated in the design.

To review laws, regulations and decrees relevant to investment. To study and put into action development projects in a way that while facilitating formation of large entrepreneurial and consultant companies, rights and obligations of parties involved are protected.

n To supply and publish a list of basic prices as an information basis for consultative and entrepreneurial contracts with definite prices for fulfillment of the whole project in a certain time, without any adjustments in contracts.

To revive tender system and eliminate consignment of projects without tender formalities.

To establish regulations and instructions to evaluate the competence of executive management, consultation, and building units for execution of large projects.

To oblige government affiliated institutions and companies, and municipalities to equally observe regulations regarding development projects.

To create possibility for development of design, and consultative companies and industrial manufacturers and draw their participation in industrial projects. To extend technical and execution system to industrial projects.

To draft and modify regulations, instructions and procedure of submission of project. Possibility of competition between domestic consultants and entrepreneurs and foreign ones must be stressed.

General Policies

To cut government's personnel, by elimination of some organizations, merging some ministries, government institutions, cut in personnel of the remaining bodies and submission of certain activities to non-governmental sector.

To review government companies' managerial system and changing policy making procedure and supervising companies through general assemblies, and supreme councils and creating the possibility for a more precise control of government companies.

To create sufficient grounds for annual control of government companies and writing reports.

To continue and expedite privatization of government companies.

To establish an evaluation system and a system of classification and evaluating competence of managers of government companies.

n To regulate payments to government personnel and to draft regulations for usage of company' facilities by managers and other employees. To correspond payments to managers with their qualification and performance.

To consign certain general services to municipalities.

To Expose hidden subsidies at the first step, then supplying subsidized aid in the form of direct aid, and finally to eliminate subsidies when universal welfare system is established.

Pricing n Economic pricing of natural monopolies, such as, water, electricity, etc. will continue to be determined on the basis of their real costs.

As it regards public commodities such as water, electricity, fuel, etc., gradual modification of prices with the objective of reaching real prices will continue. Until the end of the Second Plan, the policy is to try and receive all investment costs and running costs of production of these goods from consumers.

The relevant governmental bodies will try to store some basic and necessary goods, in order to eliminate seasonal and situational fluctuations of prices, on the basis of prediction of market conditions. The government will try to buy these goods when there is an abundance, and sell when there is scarcity with market prices. Those commodities which the government distribute widely and with controlled prices, the determined prices will be observed.

Expansion of competition in markets of commodities and services is a policy of the Second Plan. In this relation creation of any monopolized organization of production or distribution, which enacts quota system, double pricing, and non-distribution of information regarding commodities or services will be prevented. The relevant regulations will be altered in a way which producers and distributors will be able to freely enter any production or distribution.

Population Growth of public knowledge in realm of population issues through:

Emphasis on education and raising knowledge of women in fertile age, regarding preference of prevention of pregnancy.

Growth of public knowledge regarding difficulties and harms of irregular population growth through mass media, especially Islamic Republic's radio and television.

Family Planning and population growth.

To supply contraceptives widely in different geographical regions, particularly villages and deprived regions.

To acquire knowledge and carry out studies to develop and utilize contraception methods and technologies.

n To allocating part of hospitals, clinics, and hygienic centres through out the country to continuously offer contraception services.

n To eliminate all laws, regulations and relative economic- social benefits, and incentives of populated families.

Research In practising the above policies n Carrying out research to acquire knowledge regarding families' attitude, knowledge and difficulties regarding family planning.

Studying rate of population growth on the basis of current information and sampling.

Carrying out practical research regarding finding ways and appropriate technologies to raise family's knowledge, and change their attitudes and practices and eliminating their difficulties to reach contraception methods.

Carrying out the current population and work force project to find out about changes in population, labour market, active labour force, and employed population in 1374-1376.

Taking annual samples of economic and employment situation of families.

Man Power n To Strengthen net work of collecting and processing

Occupation information regarding labour market and carrying out research concerning market changes, classification and standardization of expertise and making correspondence between education and quantitative and qualitative needs of labour market.

To protect occupational opportunities by offering education in suitable occupational grounds.

To Expand and protect small industries, domestic industries and occupations, technical services, and to revive handy crafts with prioritizing countryside.

To create productive occupation for tribal surplus labour force in countryside, and to create suitable grounds for establishing non-agricultural activities in villages in order to increase per capita income of villages and creation of occupational opportunities for them.

Decline of foreign labour force and providing opportunities for sending labour force abroad.

To carry out studies and to give necessary legal protection to discover and strengthen occupational opportunities which enjoy technical- economic or cultural significance.

To draft regulations, laws, and decrees, which facilitate transfer of government offices and companies' and non-government labour force.

To put into operation following policies regarding government personnel:

To employ non-permanent labour force in administrative system.

To consign various works outside of administrative system.

To establish an exact system of evaluation and measuring efficiency in administrative system, and decreasing unnecessary labour force.

To apply an incentive and punishment system to increase efficiency.

To keep salaries of administrative personnel in accordance with economic conditions of the country and quality of services offered.

Promotion and spread of work ethic in society to increase occupation and efficiency.

To apply appropriate methods to raise quality of labour force in relation to societal needs.

To raise personnel's and management's knowledge of laws, regulations, and improving methods of managing man power.

To adopt appropriate policies to create production and occupational units in regions with high rate of unemployment.

To create possibility for apprenticeship and technical and vocational training in production units, and private organizations.

MACRO QUANTITATIVE OBJECTIVES

Production Objectives relating to economic macro variables are shown in

tables 2- 11. In table 2 gross domestic products and surplus value of different sectors are presented. On average, the annual growth of gross domestic products with fixed prices is projected at 5.8%. Thus gross domestic products will be Rls 17562.7 billion in year 1377. Taking into consideration that country's population will reach 67.3 million in 1377, per capita gross domestic products will reach Rls 261 thousand at the end of the Second Plan.

Investment The amount of capital invested and its components are shown in

table 4. Annual growth of investment in this period is on average projected at 11%. Thus the ratio of gross investment to gross domestic products will reach from 14.1% in 1372 to 17.9% in 1377. Investing will have a larger growth in infrastructure, such as, water, gas, communication, electricity, roads and buildings.

Private Consumption The annual growth of private consumption with fixed prices is projected at 5.3% (see table 3), and the cost of private consumption in the year 1377 will reach Rls 12,167 billion.

Government's General Budget The general frame work of government's general budget is shown in table 5. In the section of revenues, the ratio of tax revenues to gross domestic products is projected to reach from 5.4% per year in 1372 to 8.3% in year 1377.

Oil revenues is projected on the basis of possibilities for production and export and also the amount of allocated currency for sell. The Rial oil revenue will on average grow 16.1% per year during the Second plan. The growth of tax revenues in the same period will be 29.3% per year in relation to estimated revenues of 1372.

Average growth of budget's current expenditures will be 15.6%, and development expenditures 19.8% in relation to estimated revenues of 1372's. In the section of current expenditures, the main emphasis would be on social sector, particularly general and middle education, informal and higher education, social security and welfare, culture, physical education, youngsters, and health care, and sufficient assets will be allocated to protection of vulnerable sections and execution of the new social security system. Meanwhile, with due respect to existing straits, credits for judicial and law and order sectors have had relatively a large increase, and to protect production of essential goods, credits related to payment of subsidies for the latter and fuel is continued in the Second Plan through establishing a guaranteed price.

In the development expenditure, completing unfinished projects and allocating sufficient credits for this purpose is underlined. As far as new projects are concerned, criterium lies with infra- structure sector, such as electricity, water resources, road and transportation, and gas, except when projects of a strategic nature are concerned. Moreover, sufficient credits will be allocated to construction of educational and sport buildings.

Government's protection aid and subsidies are mentioned in budget's credits table under different chapters. To clarify the budget in the best possible way, budget's figures are enumerated in table 6, on the basis of general classification of economic, social welfare, defence, and security.

Money And Credit Table 7 demonstrates basic monetary situation, liquidity, and inflation. In this table the net sum of foreign assets and other net assets of Central bank are assumed fixed. This is not because these amounts are fixed, but rather because they are not directly affected by monetary and credit policies. The main objective of these calculations are merely to present the effects of monetary and credit policies on volume of liquidity.

Foreign Trade Table 8 represents the general objectives of foreign trade in the

Second Plan. Imports will grow on average 7.3% annually. Oil export will grow insignificantly, due to relative stability of crude oil export and the its assumed price. It is estimated that non-oil export will grow 6% annually.

It must be underlined that with regard to relative stability of currency revenues, the growth of national products is only possible if currency concentration of production is reduced. This means that for every dollar earned in oil export, more production must take place.

INDUSTRY

Qualitative Targets nTo improve industrial trade balance and to improve the quality and competitiveness of industrial products in international markets.

To raise industrial productions.

To improve and expand technology, by establishing a balance among its components (management and organisation, information, human skills, and machineries.)

To exploit existing industrial capacities.

To create and expand small scale industries with high technology, which are able to establish an enduring organic relation with medium and large scale industries, and are competitive with other local industries.

To expand handicraft-industry in order to create productive employment, particularly in villages.

To expand industrial investment in order to reach a favourable out put, in mining, petrochemical industries and transformation* and complementary* agricultural and electronic industries.

Main Policies

To channelize production and investment in industrial sector on the basis of application of comparative advantage in domestic and foreign markets.

To establish appropriate tariffs in order to both give a reasonable protection to domestic products and to consider consumers' interests.

To modify patent laws in order to protect rights relevant to inventions, discoveries, industrial innovations, intellectual, scientific, and technical ownership.

To create opportunities for non-governmental real and legal persons to participate in building industrial towns. To support building of industrial areas or towns in villages by real and legal persons. The government will determine sites and size of such areas, and other relevant regulations.

To take the necessary arrangements to transfer the ownership of industrial and production units to state organisations, institutions, and ministries, and to abolish organisations and institutions which cease to be necessary.

To set tax ceilings in a way that they correspond with economic adjustment process in order to stimulate production activities vis a vis other activities.

To uphold tax ratios policy on companies' profit on regional basis in order to promote a reasonable balance of industrial development across the country.

To establish a sound competitive environment in production and distribution, existing monopoly of industrial and mineral commodities and services will be eliminated. Production and distribution will be carried out with the participation of different parties on the basis of equal conditions.

To support foreign investment, particularly with the aim of drawing high technology and developing industrial export.

To establish the required organisation to secure standards, by determining standards, applying and supervising them in production activities, import and export. To do this facilities of research centres, state and private laboratories, services of experts will be employed. Moreover, necessary mechanisms will be implemented to raise the general knowledge in this respect.

To promote creation and expansion of agricultural and village transformation* industry in order to create employment and to raise villagers income.

To provide required conditions to foster internal and inter- departmental relations with satellite* development of small scale industry and to create and expand production chains among small, medium, and large scale industries.

To grant necessary support to handicraft through the relevant organisation, in order to uphold cultural and artistic values and heritage of the country.

To grant special technical, financial, credit, educational, and super-structural support to small scale industries with high technology.

To develop handicraft and to raise the technology applied in traditional and native activities to make them economical.

To assist creation and expansion of suitable organisations in industrial sector, to make possible their broad participation in drafting of country's policies and planning.

To organise and create information systems to offer information, technical, industrial, technological, and management services to raise productivity, to improve quality, and to increase the quantity of industrial products.

To consider industrial and technological needs of educational system.

To establish efficient incentives in order to develop those industries that have priority and to assist a reasonable development of industry in under-developed regions.

Quantitative Targets n Labour productivity will enjoy an average annual growth rate of 5%. (The bulk of this growth will be achieved by increase in exploitation rate of existing industrial capacities.)

To expand research activities in applied industry, so as to bring the relevant costs to 3% of the value of industrial products by the end of the Plan.

To increase the ratio of specialized work force (technicians and higher experts) employed in industrial sector from 3% to 4% by the end of the Plan.

To maintain the average annual industrial currency deficit balance at US$ 4,000 million through out the Plan.

The ratio of industrial export to the value of industrial products will grow 11% annually, export in US$/value of products in fixed prices of 1361.

To realise US$ 8,800 million in the export of industrial products through out the Plan.

n To improve the quality of industrial commodities and to control this improvement. The number of commodities whose quality standards are determined increase from 3000 in 1372 to 7000 in 1377.

To increase export of carpet and handicrafts from US$ 1,100 million in 1372 to US$1,600 million in 1377.

To increase industrial products as follows:

Production of raw steel from 3 million tons in 1372 to 6.5 million tons in 1377.

Production of trucks from 7000 units in 1372 to 20,000 in 1377.

Production of cement from 16 million tons in 1372 to 26.5 millions tons in 1377.

Production of fertilizer from 1.3 million tons in 1372 to 2.5 million tons in 1377.

Production of passenger cars from 34,000 units in 1372 to 177,000 in 1377.

Production of busses from 2500 units in 1372 to 4400 units in 1377.

Production of copper from 110,000 tons in 1372 to 145,000 tons in 1377.

n Production of petro-chemicals from 4.6 million tons in 1372 to 10.8 million tons in 1377.

Executive Measures n To transfer all companies and industrial units under Iranian Organisation of National Industry, Iranian Organisation of Expansion and Renovation of Industry, and National Steel Company to private sector, with the exception of Mobarakeh Steel, Isfehan Steel Mill and Ahvaz Steel.

To transfer bank's shares in industrial and mineral companies to private sector.

To reform custom regulations, structure and organisation in order to improve export.

To reform parts of labour law in order to establish a rational labour relations.

To reform structure, and organisation of industrial ministries in order to exercise a coherent leadership, and supervision over country's industries.

The government will pay part of the expenses of industry's applied education and applied research.

Defence industries will take part in supplying industrial needs and in industrial export.

To establish regulations regarding non-manufacturing of goods imported by the government or government companies.

To consign purchase of technology, engineering services, and technical investigations required by the government to domestic private sector.

Custom tariffs will be constantly reviewed. Appropriate tariffs will be established on the basis of fulfillment of economic adjustment policy, protection of domestic industries vis a vis foreign ones, and making domestic industries competitive, while eliminating special privileges.

To activate free zones in production and export, to eliminate special privileges for import of gods from these zones into the country.

To take necessary measures to execute export insurance.

To support export through studying and identifying foreign markets by industrial ministries. To combine political negotiations with economic relations.

To attract and facilitate foreign investment.

To consign manufacturing of governments requirements (machineries and equipments) to domestic manufacturers (with participation or supervision of credible foreign manufacturers.)

To train technicians in different fields by industrial units and non-governmental sector, with the approval of Ministry of Labour, and through creation of necessary incentives by the government.

To supply defence equipments and parts from country's industrial potentials.

To give financial support to research and industries involving high technology through selling of state factories.

To undertake broad advertising activities to introduce handicrafts to both domestic and foreign markets.

To create necessary facilities to supply good quality handicrafts according to international market standards.

Out of the total banking assistance to the above sector, Rls7032 billion will be subsidized by the government during the Plan. To do this the government will pay up to 8% of the rate of profit and relevant commissions of the paid sum. Therefore, it is predicted that a total sum of Rls 482.4 billion from the assets of the general budget will be allocated to this purpose. The composition of this sum for 1373-1377 will be respectively 0, 0, 0, 153.5 billion, and 328.9 billion rials.

The criteria for benefiting these subsidies are as follows:

Investing in research of applied industry.

Reconstruction and renovation of existing units.

Agricultural transformation* and complementary* industries, petrochemical industries, mineral industries, and electronic industries.

Small scale industries on the basis of regional potentials in deprived regions.

Required Resources The total assets of the industrial chapter from general revenues during the Second Development Plan is Rls1521.1 billion, which

consists of Rls100 billion current credit and Rls1421.1 billion development credits. Out of the latter Rls482.4 billion is allocated to bank credit subsidies and the rest, i.e. Rls938.7 billion is allocated to development projects of industrial chapter.

The current credit in the industrial chapter in the Second Development Plan is estimated on the assumptions that ministries of industries and heavy industries will be merged from the beginning of the plan, and no payments will be paid to state industrial companies as assistance to cover their losses.

Development Credits Out of the total amount of Rls938.7 billion development credits allocated from general revenue during the Second Plan, the amount

of Rls111 billion will be assigned to industrial research and technical and technological assistance to this sector, i.e. 11.8% of the total development credits of this chapter. Approximately Rls828 billion will be allocated to other development projects.

MINES

Qualitative Targets n To supply the requirements of industrial development through identifying more mineral resources.

To raise production of minerals.

To increase the share of minerals which have been manufactured and industrial minerals in mining sector.

To expand export of minerals in fields with comparative advantage and more surplus value.

To expand and improve the technological level with regard to creating a balance among component parts, i.e. management and organisation, information, human expertise, and machineries.

To expand education and applied research.

Main Policies

To channelizing production and investment in mining sector on the basis of comparative advantage in both domestic and foreign markets.

To determine appropriate custom tariffs to offer a reasonable protection to domestic products and at the same time to consider consumers' interest.

To create suitable conditions for rapid growth of mining sector and increasing its contribution to domestic gross products.

To expand mining activities to supply domestic needs and to export mining products, stressing on acquiring maximum domestic surplus value.

To reform mining laws and instructions so as to facilitate discovery of, equip, and making mines operational by private sector. Moreover, state mines should be privatized as soon as possible.

To identify mining potentials of the country and to expand discovery, particularly in those fields with comparative and strategic advantage.

To raise profitability of the existing mines to improve their technological level, and to reduce finished prices in order to reach international prices.

In order to establish a sound competitive environment in production and distribution, the existing monopolies in mining goods and services will be eliminated. Production and distribution will be carried out on the basis of equal conditions and with the participation of different parties.

Gradual eradication of unnecessary mining companies and organisations through out the country.

To support foreign investment, particularly with the aim of drawing high level technology and developing mining export.

Quantitative Targets Major mining products in the Second Plan are estimated as follows: n To raise production of iron ore from 4.5 million tons in 1372 to 10.5 million tons in 1377.

To raise production of concentrated copper from 325,000 tonnes in 1372 to 510,000 tonnes in 1377.

To maintain production of concentrated coal at the current level (930,000 tons.)

To raise Production of construction minerals from 44 million tons in 1372 to 54 million tons in 1377.

n To raise the share of industrial minerals in mining products from 54% in 1372 to 59% in 1377.

n Productivity of labour in mining sector will have an average annual growth of 4%.

n The costs of applied mining research will reach 1% of the value of mining products by the end of the Plan.

n The export of mining products will reach a total of US$300 million by the end of the plan.

n To provide geological maps of all the regions with mining potentials in 1:100,000 proportion.

Governmental executive programmes

Geological programme and mining exploration

A major item in the Second Plan is to complete geological maps in 1:100,000 proportion of all regions with mining potentials. In the Second plan exploration operations consist of completion of exploration of uranium, boxit, led, and zinc, coal and iron ore remained from the first plan and some case and complementary explorations.

Required Sources A Rls24 billion credit in the form of organisation's current credit and revenues resulting from sale of technical services will be

allocated to geological operations. Required development credits for mining exploration operations is estimated at Rls75 billion.

The programme to equip, and operate mines, and making them operational

To raise production of iron ore 4.5 million tonnes in 1372 to 10.5 million tonnes in 1377.

To raise production of concentrated copper from 325,000 tonnes in 1372 to 510,000 tonnes in 1377.

To maintain production of concentrated coal at the level of current production, i.e. 930,000 tonnes.

Required Measurements During the Plan Gol Gohar iron ore Mining complex will become operational, Chader melo iron ore mining complex will be completed and start operation, and chaghret mines will be expanded. Required capital for these operations is around Rls684.8 billion and will be supplied from development credit of the Plan.

The raise in production of concentrated copper will be met through raise in production of Sarcheshmeh complex and Midouk copper mines which become operational. The required capital is around Rls150 billion which will be supplied through development credits of the Plan. Around Rls125 billion capital is needed to maintain current production of concentrated coal and eventually raising it to cover future domestic needs. This would also be supplied through development credit.

Plan to equip aluminum mine and to build a 150,000 tonnes unit to produce aluminum from bauxite requires a capital of around Rls175 billion. This, too, will be supplied through development credits.

Training, Research, and analysis project

During the plan technical personnel and mangers will at least go through a short domestic training course (almost 60 hours).

Research will be expanded so as to its share of expenses will increase to 1% of production value of this sector by the end of the plan.

Exec. measures n To expand information net-work in the sector.

To apply remote analysis technology and high technologies.

To establish training and re-educational courses, particularly in applied fields.

To stress execution of research projects relating to recovering mining residues.

Required Sources n The government will invest around Rls10 billion in expansion of education and creation of training centers, and Rls25 billion in research. These figures will be supplied from development credits of the Plan.

Quantitative targets of private sector (non-governmental) and required measure.

It is estimated that construction minerals will raise from 44 million tonnes in 1372 to 54 million tonnes in 1377.

Required Measures n To prepare and publish the list of country's active mines and different mining activities for information and attracting private domestic and foreign capitalists.

To prepare regulations regarding supervision of mines and optimal operation of them, in order to prevent destruction of mining reserves.

To stress preparation of environmental regulations and instructions in mining and to exercise supervision to ensure that they are strictly observed.

To eliminate legal obstruction in the way of private sector to enter mining activities.

To assist mining research in private sector.

DOMESTIC TRADE

Qualitative Target n To make domestic trade efficient and to reduce the costs of transportation of goods.

Main Policies

To co-ordinate trade activities with other economic sectors, in a way that trade sector is able to support other economic activities, while regulating the market.

To help create regional balance, and to transport goods to deprived regions.

To take supply and demand mechanism into consideration in regulating the market. In case the latter is not sufficient other means will be utilized, stressing the principle of limiting monopolies, reducing fluctuations and supplying seasonal needs.

To reduce public sector's share in trade activities and exercising government's supervision.

To supply and stock pile essential commodities to provide people's minimum needs.

To improve distribution net works in order to minimize distribution costs and the middle men.

To support consumers' rights by rendering judicial assistance as follows:

The right to wholesome and safe goods and services.

The right to choose.

The right to accurate information.

The right to government protection.

The right to organize.

Industrial producers will have the right to offer their commodities through creation of direct distribution units.

Quantitative targets and government's executive plans

n Subsidies to essential goods and other commodities will amount to Rls 11,897.2 billion in the Second Plan, out of which Rls11,533.2 billion will be allocated to essential goods. Rls 2,734 billion saved from subsidies paid to essential goods will be given to social security to help vulnerable sections.

Wheat will be stored at the average annual rate of 17% and the stored amount will increase from 1,881 million tonnes in 1372 to 4.2 million tonnes in 1377.

To make operational 700,000 tonnes of live stock food storage during the Plan.

To increase the capacity of storage in town and country by 30,000 tonnes.

To increase the capacity of storage of raw sugar in Bandar Imam Khomeini by 20,000 tonnes.

To increase capacity storage of fertilizer and pesticide by 25,000 tonnes.

To increase capacity of multi-purpose storage in agricultural area by 700,000 tonnes.

To increase capacity of killing live stock by 11,600 per day.

To reduce bread loss at an average annual rate of 25%.

Executive n To give priority to supply essential goods from domestic products

Measures

To supply and provide essential goods in order to supply public needs.

To consign to private sector supply of those commodities which are not under direct commitment of the government.

To eliminate subsidies for non-coupon essential goods.

To reduce gradually subsidies for essential goods and total elimination of it by the end of the Second Plan, with the exception of wheat, flour, bread, and agricultural fertilizer and pesticide. Instead to channelize these resources to assist vulnerable sections.

To maintain the price of essential coupon goods until the elimination of subsidies.

To pay subsidies for essential goods on the basis of market price and floating exchange parity.

To change system of payment of bread subsidies to direct cash payment.

To take necessary measures to establish the real price of bread to reduce bread loss.

To apply required mechanism to supply commodities on time.

To transfer information in domestic market for goods and services.

Required The current credits of this sector will be reduced from Rls2359

Resources billion in 1372 to Rls2151.2 billion in 1377. The major share of

current credits belongs to the regulating plan of markets for essential goods and food stuff. This plan takes up 98.1 and 95.8 per cent of currents credits in 1372 and 1377 respectively. This means that its share reduces from Rls2315.4 billion in 1372 to Rls2061.5 billion in 1377. The other plans will enjoy an average annual growth rate of 16% during the plan.

The credits under this plan include cheese subsidies, compensation for loss of agricultural products, Agricultural Bank loss fund, agricultural products insurance fund, and to cover the difference in transportation costs of village goods.

In the second plan from current credits Rls342.5 billion will be allocated to the plan for supervision of trade affairs, and Rls20 billion to the plan for expansion and improvement of export.

Development credits of this sector is Rls804.3 billion. The amount of Rls107.6 billion will also be allocated from internal resources of state enterprises to investment in trade sector.

Investment credit in this sector will be classified as follows:

Investment in storing essential and strategic commodities will be supplied through development credits and internal resources of companies and with the average annual growth of 124.3% will increase from Rls88.5 billion in 1372 to Rls263.1 billion in 1377. This is the largest part of investment in this sector (half). Thus 2,300,000 tonnes will be added to storing capacity of wheat during the Plan. Out of this 1,800,000 tonnes are related to projects under construction and 500,000 tonnes to new projects. 1,400,000 tonnes will also be added to the current capacity of temporary storage (warehouse), the construction cost of which will at Rls95 billion and it will be supplied through internal resources of cereal organisation.

During the Plan in Imam port a store house for off-loading of raw sugar with the capacity of 20,000 tonnes, store houses for fertilizer and pesticide, with the capacity of 25,000 tonnes, and multi- purpose store houses with the capacity of 700,000 tonnes, cold store houses with the capacity of 125,000 tonnes, and 6 slaughterhouses with the capacity of 11,600 live-stocks will be built.

Quantitative targets of non-governmental sector and required measures

To increase the capacity of manufacturing of bread production by 2 million tonnes during the Plan.

To increase the capacity of tea storage by 45,000 tonnes during the Plan.

Required n To encourage the non-governmental sector to increase and expand storage

Measures capacities.

To encourage the private sector in participating in commodity statistics and information system.

To assist creation and making operational bread manufactories in order to make the process hygienic, to reform the system and to reduce the waste.

To attract people's participation in regulating and adjusting commodity market by providing information, eliminating obstacles and offering necessary facilities.

To establish consistent rules and regulations regarding free regions and ports and border markets in order to protect exports, regional balances, and to reduce deprivation.

CO-OPERATIVES

Qualitative Targets n To expand co-operatives and to increase their share in the national economy in order to insure social justice.

To expand small-scale enterprises and to create occupational opportunities for those who have no means of work.

To expand co-operative culture.

Quantitative Targets

Agriculture

To increase the number of agricultural co-operatives from 2990 in 1372 to 8404 in the end of 1377, that is an average annual growth of 23%.

To increase the number of agriculture employees from 39400 in 1372 to 108,000 in 1377, i.e. the average annual growth of 22.3%.

Industry and Mining

To increase the number of industrial and mining co-operatives from 3246 in 1372 to 6738 in 1377, i.e. the average annual growth of 15.7%.

The number of employees in industry and mining will increase from 57,600 in 1372 to 156,000 in 1377, i.e. the average annual growth of 22%.

Housing and Developmental affairs

The number of housing and developmental affairs' co-operatives will increase from 8816 in 1372 to 8916 in 1377, with an average annual growth of .2%.

The number of employees will increase from 114,000 to 176,000 in 1377, with the average annual growth of 8.9%.

The number of co-operative' members will increase from 1,200,000 families to 1,350,000 families in 1377.

During the Second Plan 100 development companies will be created, and approximately 1,800 companies will be renovated.

Services

The number of service co-operatives will reach 23,757 in 1377 from 11,551, i.e. with the average annual growth rate of 15.5%. Out of these 10,000 will be educational co-operatives, whose members are school students.

The number of service employees will increase from 39,000 in 1372 to 102,000 in 1377, i.e. with the average annual growth rate of 21.2%.

Once the above targets are realized, the number of cooperatives will increase from 26,603 in 1372 to 47,815 in 1377, with average annual growth rate of 7.3%. The number of members will reach 9.5 million in 1377 from 7.7 million in 1372, with the average annual growth rate of 4.2%. The number of occupants will raise from 250,000 in 1372 to 541,000 in 1377 with the average annual growth rate of 16.7%.

Exec. Measures To protect small-scale enterprises as follows:

To organise producers and small-scale service companies in specialized co-operatives.

To draw participation of production co-operatives in scientific and research activities.

To draw participation of small-scale producers in commodity export.

To establish facilities for preparing and packaging of export commodities in co-operative sector.

To organise exclusive or international co-operative exhibitions.

To establish and expand co-operatives which supply expert man-power.

To assist renovation and modernisation of country's general transport co-operatives.

To assist supplying people's general needs as follows:

To encourage unemployed graduates to establish production co-operatives or co-operatives that create jobs.

To exert appropriate policies in order to strengthen or activate existing co-operatives and to expand their activities.

To reform production structure of production co-operatives in order to raise efficiency rate and preventing stagnation of activities.

To assist rise of agricultural and garden produce of agricultural co-operatives by increasing production efficiency and expanding the area under water cultivation.

To establish facilities and to eliminate obstacles to make participation of mining co-operatives in exploration and exploitation activities possible.

To create sufficient grounds for participation of development co-operatives in execution of development projects and housing.

To assist organisation of active development co-operatives in the form of large contractors and to assist their participation in large projects.

To assist raise of production quality and establish sufficient regulations for factories of co-operative sector in order to standardize their products.

Required During the Plan an amount equal to Rls68.7 billion will be allocated

Resources to expenses, from general budget in this sector. Out of this amount

Rls61.6 billion will be as current credits, and Rls7.1 billion as development credits. The development credit will be used to complete unfinished buildings of general offices of Arak, Mashad, Isfehan, East Azarbaijan, West Azarbaijan, Gilan, Mazanderan, and Sistan and Baluchestan.

In addition to these credits, a part of the credits of other sections will be allocated to expand co-operatives in relevant sections.

ENVIRONMENT

Qualitative Targets To maintain and revitalize environmental resources of the country.

To utilize existing resources in a proper and stable manner in order to raise quality of life for both this generation and future generations and to undertake Islamic Republic of Iran's commitments in relation to Rio Manifest.

To raise environmental culture of the society.

To restore negative effects of past activities on environment.

Main Policies

To co-ordinate environmental projects with international agreements, which are acceptable to I.R.I. and taking into consideration the principle of stable development.

To draft necessary environmental regulations, standards, and indexes and to reform existing legal and legislative framework on the basis of latest scientific findings, and in accordance with country's possibilities and conditions.

To reform the structure of organisation of Environmental Protection in order to correspond to economic and social development programmes of the country.

Decision making authorities will consider aims of a stable development and environmental issues.

It will be an obligation to evaluate environmental considerations in substantial projects and in developmental planning, in accordance with standards, in order to prevent environmental damages and to better utilize national resources.

To optimize use of energy by changing consumption pattern, to to increase efficiency in usage of consumption energy and use clean and substitute energy.

To expand basic and applied environmental research according to country's particularities. To promote environmental knowledge and education. To create an incentive for people's participation in improving quality of life.

To take into consideration country's environmental resources' potentials in relation to development plans by studying the environmental capacity.

To consider maintenance and revitalization of natural resources.

To protect rare plants, to prevent growth of desert, to try and eliminate salt desert, to prevent erosion and earth pollution, air pollution, pollution of surface and ground water and marine environment, to prevent destruction of wild life environment and to properly utilize mining resources in accordance with environmental guidelines.

QuantitativeTargets

Air

To reduce Tehran's air pollution as follows:

To reduce Carbon monoxide from 40 PPM to 15 PPM at the end of the Plan.

To reduce hydro carbon from 3.5 PPM to 1.5 PPM at the end of the Plan.

To reduce nitrogen oxide from 0.1 PPM to 0.07 PPM at the end of the Plan.

To reduce nitrogen oxide from 0.1 PPM to 0.05 PPM at the end of the Plan.

The reduce sulfur nitrate from G/M3 170 to G/M3 100 by the end of the Plan.

To reduce air pollution in Tabriz, Ahvaz, Arak, Shiraz, and Isfehan, to the standards of World Health Organisation.

To increase Per capita city green space from 8 square meter to 10, through creation of 13,000 acre new green space.

To build at least 5,000 acres of circular green space around 6 polluted cities with co-operation of different municipalities.

To reduce consumption of 11 CFC and 12 CFC from 2500 tonnes in 1372 to 1500 tonnes by the end of the Second Plan.

Water and Earth

Gradual reduction of B.O.D.s from 40-50 milligram in 1372 to 10 milligram in liter by the end of the Plan in following rivers: Zayandeh-rood, Ghara-soo, Karousivand, Karoon, Sefid-rood, Zarjoob, Kamasiab, Jajrood, Karadj, Saghz-chai, Gheshlagh, Tajan, Siah-rood, and Talkh-rood.

Natural Resources n To utilize the northern forestry in the rational manner, equal to the amount used in 1372, i.e. approximately 2 million cubic meter.

To harvest fodder at 10 million tonnes a year during the plan.

To stabilize quick sand at 1.7 million acres during the plan.

To increase the area under aquifers....projects from 3 million acres in 1372 to 3.45 million acres by the end of the Plan.

To priorities evaluation and execution of Rio's recommendations regarding 1200 natural resources research subjects.

To create two natural parks, Pardisan and Arak.

To equip and exploit following national parks: Lake Uromieh, Tandoureh, Kavir, Bamou, Khajir, Sarkhaseh hesar, Golestan, and regions under control of Hara, Sabalan, Londvid, Haftad ghalleh, Miankaleh, Ghorigal, Parishan, and Gohar.

Executive Measures To employ clean and unpolluted energy by producing reproducible energies, such as: creation of capacity of 10 mega watt wind and 20 mega wat solar energy.

To develop environmentally suitable general transport system, such as, electrical buses, and under ground.

To transfer to gas energy 1220 industrial units and to create gas facilities for 1,700,000 families.

To determine regional standards for sources of air pollution.

To observe environmental standards in production, distribution, and consumption of oil products.

To equip cars produced in the country with catalinic transformers, and to forbid import of non-standard vehicles.

To change the fuel system of petrol cars manufactured in the country, so as to employ non-led petrol.

To establish environmental checking cards for vehicles commuting in and around Tehran, Arak, Isfehan, Shiraz, Ahvaz, and Tabriz.

To announce conditions of air in Tehran, according to standards of World Health Organisation, by setting up placards in crowded areas in order to inform people and to attract public participation in reducing pollution.

To determine standards and regulations regarding noise pollution.

To control waste from pollution creating food industry.

To equip 300 industrial units with filters in major pollution creating industries.

To move state and private industries which pollute the environment within a radius of 120 km.

To change gradually production lines in factories producing refrigerator, freezer, etc. in order to substitute CFC11, AND CFC12 with materials which do not damage the ozone layer. To supervise utilization of damaging materials in repair workshops for refrigerators and freezers.

To increase the number of swage network to 400,000 in order to increase covered population by 2.8 million.

To increase the capacity of existing sewage systems and those under construction.

To determine regional standards for waste of industrial and city swage.

To examine the rate of pollution in ground water beds and minerals.

To encourage usage of organic fertilizer, compost, and to employ fallow rotation cultivation to improve cultivation of soil and to minimize damages caused by utilization of chemical fertilizers.

To reduce gradually utilization of chemical pesticides, and fertilizers and to employ biological methods.

To increase the population receiving sanitary drinking water from 31.5 million to 38 million.

To improve the quality of drinking water of 21 million people who use the current system.

To create and equip environmental research centres in capital of all provinces, to create environmental research stations in 40 important cities and to equip environmental document centres.

To study and examine oil and non-oil pollution in Persian Golf, Oman sea and Caspian Sea in co-operation with neighbouring countries and members of regional pacts.

To equip all hospitals with more than 50 beds with refinery and waste burning system.

To mechanize collection, transportation, and dumping of 15,800 tonnes per day of city garbage in 15 cities.

To observe sanitary standards in dumping of garbage and waste and to prevent areal expansion of garbage dumping ground.

To determine standards and regulations regarding burial of toxic, and non-toxic waste.

To inspect all radiological centres, 150 cases annually. To organise educational courses for protection of radioactive by competent authorities.

To up-date safety regulations, standards and instructions regarding nuclear plants and to protect people against radiation.

To stop unrestrained usage of forestry and meadow.

To study, improve and equip regions and "specific echo system" and national parks, and nature.

To promote knowledge of environment in society through mass media.

To produce, supply and distribute journals, brochures, and educational films regarding environment.

To prevent pollution and environmental destruction resulting from economic activities by execution of regulations and instructions and creation of "Green army" and to draft required laws, regulations and standards in this regard.

To instal equipments for measuring air pollution in 25 provinces.

To examine limnologic and biologic condition of lakes Bakhtegan, Shadegan, Mian Kaleh, Gaav Khooni, Hamoon, Orumieh, Haft Baram, Dez, Zarivar, Jaz mourian, Anzali, Chaghakhor, Gandoman, Amir Klayeh, Khor Mousa, Chang Sorkh, and Khargoushi.

To study the environmental state of 50 kinds of mammals and 4 kinds of birds which damage the environment.

To study the state of 140 kinds of rare animals and plants including of 60 kinds of birds, 10 kinds of mammals, 10 kinds of marine lives, and reptiles and 50 kinds of plants.

To research and examine the environmental effects of operation of 200 mines in protected regions and non-issuance of new agreements before knowing the results of above researches.

Required The total credit allocated to environmental section from general Sources earning is Rls246.8 billion, out of which Rls153.2 billion are assigned to development credits, and Rls93.6 billion for current activities.