Iran Parliament Rejects Budget Bill for Next Year

In a major setback for the administration of Iranian President Ebrahim Raisi, the parliament has rejected the budget bill for the next Persian year.

The bill was voted down by 127 lawmakers on December 13, with 91 in favor and 10 abstentions.

The government now has one week to amend the bill and resubmit it to the legislature. 

The first version of the proposed budget for the year starting in March 2024 was rejected because it projected a rising deficit and failed to adequately address pensioners’ needs. 

Parliament speaker Mohammad Bagher Qalibaf expressed concern about the impact of "the significant deficit in this bill” on the Iranian economy.

"If the government and the parliament want to compensate for the deficits by levying taxes, worse problems will arise," he also said, in reference to statements made by government officials regarding tax increases.

Another key reason for the rejection of the bill was the government's refusal to raise pensions, which lawmakers say will further exacerbate the already difficult economic situation of pensioners.

Retirees have been demanding a 30-percent increase of their pensions, while the government has only offered a 20-percent increase.