Iran: Majlis rejects government’s new draft budget

Majlis has rejected President Hassan Rouhani’s draft state budget of about $33.7 billion for the Iranian year of 1400 which begins on March 21.

Members of parliament dismissed the general outlines of the budget bill by 148 votes to 99 on Tuesday during a stormy session, Islamic Republic News Agency (IRNA) reported. Twelve lawmakers abstained.

President Rouhani did not attend the parliament’s reading of the draft budget, sending his deputy in charge of economic planning Mohammad Baqer Nobakht instead.

The government presented the draft budget to parliament early last year, promising less reliance on oil revenues and higher growth, but it took not long before critics described it as too generous on government spending and short on development.

President Rouhani has dismissed such criticism and on Tuesday, he told a government meeting before the parliament session that the new budget had been drafted to manage the development path during an economic war.

The budget of 8,413 trillion rials is up 74% from last year’s figures, but way too low from the years before the most draconian illegal US sanctions ever targeted oil exports and almost every key hard currency earning sector.

Iran continues to sell oil, but the exports are a fraction of what they were before the sanctions. President Rouhani has said he expects oil experts to rise this year – to 2.3 million barrels per day – but critics see it too optimistic.

The government has reportedly based the budget on an oil price of $40 per barrel. It also plans to sell state bonds and properties to generate revenues.  

SS