During the ceremony he explained the main axes of the budget bill saying, "What has been carried out since the beginning of 1379 (March 2001) was quite different from the performance of Iran’s economy during the past four decades."

He noted that the Fourth Economic Development Plan stressed reliance on domestic financial resources, avoiding of borrowing from Central Bank of Iran and securing economic growth.

Elaborating about economic achievements of the Third Economic Development Plan and a number of major economic indexes during the eight months of the current year, Khatami stated that the result of all the efforts made by government was the realization of the Third Economic Development Plan’s projections including attaining an average gross domestic product of about 2.5% per year against a 8.3% growth figure during the Second Economic Development Plan.

"Other achievements of the Third Economic Development Plan included an average inflation rate of 2.13% per year against an average inflation rate of 1.25% for the Second Economic Development Plan; a 7.1% investment growth per year compared with 9.7% for the Second Economic Development Plan; considerable increase in Central Bank reserves and establishment of Forex Reserve Fund," he noted.

Khatami mentioned reducing unemployment rate to an annual average of 7.13% against 5.14% during the Second Economic Development Plan as well as annulling multiple foreign exchange rate system and eliminate economic rents emanating from it as other achievements of the plan, adding, "The country’s foreign exchange deposits, including those of the Central Bank and the Forex Reserve Fund have hit their highest during the past four decades."

Khatami stated that despite many difficulties with regard to governmental assets, housing sector and consequences of unification of forex rate during the eight months of the current year (ending 20 March 2004), inflation rate was controlled at 6.16%.

He noted that growth in production and investment that had hit 4.7% and 0.13%, respectively, during 2002, continued during the current year at a rapid pace, except for the agriculture sector that would possibly grow less than other sectors.

"The budget bill has increased growth of investment credits considerably and during the seven months of the year, the figure grew by about 60% compared to the corresponding period of the previous year," he said.

Khatami mentioned special attention to income distribution and increased social welfare through organizing governmental support systems; continuation of job creation policies; coordination of monetary and financial policies and rapid economic growth as the third strategy adopted by the budget bill for 1383 (2004-05). "Another strategy is continuation of economic stabilization policy through adopting coordinated policies with an eye on the Forex Reserve Fund as well as continuation of budget transparency and forex rate unification policies," he said.

He mentioned downsizing the government as another feature of the budget bill and stated that emphasize had been put on reducing current credits, increasing efficiency of capital assets ownership and privatization as well as restricting expenses.

Khatami said next year’s budget bill had tried to pave the way for the realization of Article 88 of the act for regulating part of the government’s financial regulations.

Stressing the decentralization of the budget bill, the President went on to note that based on Article 78 of the Third Economic Development Plan efforts had been made to increase provincial projects in proportion to national ones and delegate more powers to planning and development councils of provinces.

"Moreover, expansion of provincial credits would increase latitude of provincial planning and developmental councils for allocating credits. Also, 21,320 billion rials would be paid to governmental companies, banks and profit institutes affiliated to the government to compensate their losses and help implement capital assets ownership plans," he said.

Khatami noted that investments by governmental companies, banks and profit institutes affiliated to the government would hit 231,411 billion rials during the Iranian calendar year 1383 (2004-05), up by 8.11% compared to the preceding year.