Budget Dispute for 2024; Reaction of the Budget and Planning Organization to the Joint Commission's Resolutions: Resolutions Have Financial Burden and Are Not Final

The dispute between the Parliament and the government over the budget provisions for the upcoming year has entered a phase of issuing statements. Following the recent resolutions of the Parliament's Joint Budget Commission, the Budget and Planning Organization issued a statement rejecting these resolutions, emphasizing that they create a 'financial burden' and are not final. In the announcement addressed to the public, it was stated that the representatives of the Joint Budget Commission approved several supplementary provisions whose financial coverage had not been secured or predicted, despite the government's representatives' opposition. The organization also criticized the media coverage of these provisions, stating that these resolutions may be recognized as contrary to Article 75 of the Constitution and may not be approved. Article 75 of the Constitution emphasizes that legislative proposals and amendments presented by representatives that lead to a reduction in public revenue or an increase in public expenses can only be proposed in Parliament if a way to compensate for the revenue loss or secure new expenses is also specified. Rahim Zare, the spokesperson for the Joint Commission handling the 2024 budget bill, announced some of the Commission's resolutions during a press conference on Sunday, January 15. According to reports published in the media, some of these resolutions, which experts believe disrupt the government's financial equations, are as follows: 1. Marriage interest-free loans of 300 million tomans and for couples under 25 years old and wives under 23 years old, 350 million tomans. 2. Interest-free loans for childbearing: 400 million rials for the first child, 800 million rials for the second child, 1.2 billion rials for the third child, 1.5 billion rials for the fourth child, and 2 billion rials for the fifth child and beyond. 3. Maintaining the price of energy carriers. 4. Reducing customs duties and value-added tax on imports of essential goods, medicines, consumables, animal feed, and infant formula to 1%. 5. A 20% increase in employee salaries. 6. Increasing the National Development Fund's share from oil sales from 40% to 45%. 7. Reducing customs duties on all machinery, equipment, raw materials, and intermediate production to 2%. On December 12, members of Parliament opposed the generalities of the 2024 budget bill proposed by President Ebrahim Raisi with 91 votes in favor, 127 against, and 10 abstentions. The budget bill was sent back to Parliament after further amendments and its generalities were approved in the open session. The main criticisms of the upcoming budget include a deficit of over 300 trillion tomans, an almost 50% increase in taxes, an 18% increase in salaries, inflationary tendencies, and neglect of the majority of people's livelihoods. Tax disputes in the media; 'ILNA' criticized the low taxes of gold sellers and real estate brokers. A gathering of retired educators in front of the Budget and Planning Organization in Tehran. A labor activist stated: Regional wages can only be implemented with the participation of 'real representatives' of workers. A union official stated: With the implementation of the seventh development plan bill next year, retirees' salaries will decrease by 20%. The response of educators' organizations to the 2024 budget bill: More pressure on teachers and retirees. Inflation warning regarding the proposed 2024 budget bill; inflation will exceed 50%. The likelihood of an increase in energy prices has strengthened; the rise in gasoline prices is very close.