Tehran, Dec 18, IRNA -- President Mohammad Khatami on Wednesday outlined to the parliament the priorities of a new budget bill, totalling more than 107 billion US dollars, for the year 1382, with the 'special' focus on privatization, creating jobs and attracting foreign investment.

He unveiled the budget for the fiscal year beginning March 21, 2003 which stands at 859,743 billion indicating a 21 percent rise compared with the budget for the current year. Government budget has been put at 285,160 billion rials, equalling around 35 billion dollars and indicating a 11 percent rise.

Khatami described the draft bill as an 'evidence of the government's diligent efforts to live up to its pledges of pushing ahead with reforms and making optimal use of the country's potentials in the current difficult situation'.

Further top on his list are a decision to check state expenditure and trim government size in addition to finishing incomplete projects and refraining from embarking on new plans in the new year, Khatami told an open session of the parliament.

Other features of the bill are a government bid to cede part of the central government's authorities to governors and decentralize national budget revenues by making them provincial as well as maintain subsidies for essential goods and reform the budget structure.

Khatami predicted growth in most sectors, including agriculture, industry and mines, oil and gas, transport and telecommunications, while he hit out at those who tried to portray the country's general economic performance as gloomy.

"Those who think of instilling anarchy, self-centeredness and despotism instead of religious democracy have no fear to portray the existing situation (of the country) as gloomy and distort realities as well as overlook services of various sections and establishments," he said.

The Iranian president asked groups of various political hue to quit the 'ballyhoo' and back his development plans in the face of serious domestic and foreign threats.

A 6.1 percent GDP growth rate, which currently stands at six percent, had been forecast in the new budget bill, he said.

Public welfare indices indicated a 3.7 percent growth and are projected to reach 7.1 percent in the 2003-2004 fiscal year, Khatami added.

He put inflation rate at 14 percent against a projected six percent economic growth rate, saying the government expected to live up to its bid to create 550,000 new jobs in the period.

Iran's economy is largely dependent on petrodollars which account for more than 80 percent of the country's hard currency revenues.

Khatami said a 2.5 percent growth in oil and gas revenues had been projected in the new budget bill provided OPEC's output quotas remained unchanged. Iran's quota, accounting for the second biggest in the OPEC, currently stands at 3.5 million bpd.

The president made little mention about the sources of revenues, only saying that the government was planning to make use of foreign resources in its energy, transportation, oil, petrochemicals and industry sectors.

The Persian daily Hayat-e No on Wednesday cited a member of the economic commission of the parliament, Shamsuddin Vahabi, as saying that the State Management and Planning Organization had proposed attracting 9.6 billion dollars in foreign finance in the new budget bill.

Meanwhile, Iran's revenues from oil sales had been predicted to reach 15.2 billion dollars which compares with 12.8 billion dollars this year, the MP said.

Vahabi said the parliament was expected to calculate oil revenues on the basis of 19-23 dollars per barrel. The Majlis has announced its preferential price at 22 dollars.

Also in question is the issue of the government's budget deficit which Vahabi urged the government to redress through sale of additional oil above OPEC quotas as well as tax revenues.