Iran’s oil minister says the administration will implement a contractionary monetary policy and is looking to withdraw money from the National Development Fund.

According to IRNA, Oil Minister Bijan Namdar Zanganeh said: “Iran is planning to adopt a contractionary monetary policy and, along with improving tax revenues, it will carry out projects only based on their rate of productivity in order to reduce the impact of the fall in oil prices.”

The drop in oil prices to below $80 a barrel has left the Iranian administration with a significant shortfall in its planned budget. Oil prices have fallen by more than $30 per barrel in the past five months.

Iran’s National Oil Company has recommended basing the new budget on an oil price of $70 a barrel, which would reduce government spending considerably. However, the oil minister says there are balancing acts that can help the country pass through this stage.

Namdar Zanganeh added that Iran will exchange information with the other 11 members of OPEC regarding strategies to stabilize oil prices.