Rewritten Title: Government Deliberates Fuel Pricing and Economic Coordination for Upcoming Fiscal Year
Article Content:
No Final Decision on Fuel Prices Yet
In a recent statement, Seyed Kamel Taghavinejad, the Secretary of the Government’s Board, addressed questions regarding the status of gasoline prices in the upcoming national budget. He clarified that the matter is currently under expert review and that no final decisions have been made. This indicates a careful, deliberative approach by the government to a key economic issue.
Clarifying Roles in Inflation Control
The official also provided crucial insights into the government’s structural approach to managing the economy, specifically concerning inflation. When asked which body is primarily responsible for controlling inflation, Taghavinejad outlined a framework of shared responsibility.
He affirmed that monetary policy, a key tool against inflation, falls under the mandate of the Central Bank. However, he emphasized that fundamental economic policies are the domain of the Ministry of Economic Affairs and Finance.
A Coordinated Economic Strategy
Expanding on this, the Secretary detailed the roles of various institutions:
- The Plan and Budget Organization holds a specific role in the process.
- The Ministry of Economic Affairs and Finance is responsible for controlling other economic sectors and is the authority for the country’s fiscal policies.
- The Central Bank bears the overall responsibility for monetary policies.
Taghavinejad stressed that these fiscal and monetary policies are deeply interconnected and influence one another. He noted that these tools must be used appropriately, whether in a contractionary or expansionary capacity, depending on specific economic conditions.
Leveraging Capital Markets for Economic Stability
Further elaborating on the multi-faceted strategy, the Secretary pointed out that while the Ministry of Economy manages the capital market, this market is not isolated from inflation dynamics. He highlighted the potential to utilize the capital market as a strategic instrument.
The use of all available financial tools, he concluded, has a direct impact on the inflation rate. Therefore, effective control of inflation requires the coordinated participation of all these bodies under the guidance of the Supreme Council of Economics, ensuring a unified and targeted national effort.