Proposed Iran Budget Cuts Spending 5 Pct

Iranian President Mahmoud Ahmadinejad has presented parliament a draft budget that would cut government spending by 5.6 percent while allocating more money for development projects.

The $416 billion budget, unveiled Wednesday, is about 5 percent less than the previous year's budget, and comes at a time when Iran is facing mounting international sanctions and isolation over its controversial nuclear program. Iran disputes the West's claim that the program is aimed at producing weapons.

The proposed budget sees a 5.6 percent cut in government spending while boosting spending on development projects by 20 percent.

The new budget would cover the Iranian calendar year beginning March 20.