Report: Iran approves reduced budget, reflecting effects of sanctions over nuclear program

Iran's state TV reports the parliament has approved a budget that reflects the effects of tough Western sanctions over the country's suspect nuclear program.

The $290 billion budget for the current fiscal year is 36 percent less than last year's.

The West suspects Iran might be heading toward production of nuclear weapons. Iran insists its nuclear program is for peaceful purposes.

Western sanctions have collapsed the Iranian currency, now set at 35,000 rials to the dollar, nearly triple the rate of last year. Also, the EU has stopped buying Iranian oil, cutting into vital revenues.

The new budget allows the government to set the price of oil, which stood at $85 a barrel last year.