ILNA's Account of 'Price Liberalization' in the 2025 Budget; 'People Will Become Poorer'

A labor activist criticized the 2025 budget bill and the government's continuous 'liberalizations' and economic adjustment policies, stating that 'fundamental supports are being eliminated' in this bill. Faramarz Tofighi, in an interview with the government news agency ILNA, protested that 'the budget for certain specific institutions has increased' and emphasized that there is no allocation for building power plants and supplying electricity to the people in this bill; they only intend to raise prices. Regarding the currency policies in the budget bill, he believes that 'systematic currency corruption has taken root in the economy' and instead of solving this problem, they are eliminating the preferential currency; thus, 'the government gains income but the people become poorer.' ILNA reports signs of 'price liberalization' and 'removal of government computers,' noting that next year, with a $3 billion reduction in the import budget, an increase in the preferential currency rate in line with inflation, and the liberalization of energy prices, including electricity, costs will significantly rise. ILNA also cites decisions from the Ministry of Energy, which announced that 'electricity prices will increase according to the law, and from now on, citizens, especially high consumers, must supply their electricity from the free market and renewable sources.' Another sign of 'price liberalization' is the statements from Mojgan Khanloo, spokesperson for the 'Budget Headquarters,' who reported the government's plan to gradually increase the preferential currency rate next year, 'implemented to control inflation.' According to this report, a gradual increase in the preferential currency rate for importing essential goods and medicine has been considered in next year's budget and will be adjusted according to the annual inflation rate. The report claims that if inflation in 2024 reaches 30%, the euro will be priced at 40,300 tomans and the dollar at 37,000 tomans. If inflation reaches 40%, the dollar will be priced at 40,000 tomans. These changes will lead to an increase in the prices of essential goods, such as chicken meat, which depend on the preferential currency and animal feed. According to this news agency affiliated with the government organization 'House of Workers,' the budget for importing essential goods and medicine has decreased by 20% in next year's budget, from $15 billion to $12 billion. ILNA emphasizes that with price liberalization, the basket of goods subject to preferential currency will shrink, and some essential goods and medicines will be offered at free market rates; even if preferential currency is allocated to some goods, their rial prices in the market will rise sharply. Faramarz Tofighi, the labor activist, states: 'When the Minister of Energy has liberalized electricity and asks people to buy it from the free market, one should expect a livelihood crisis.' This labor activist added that the increase in energy prices causes the prices of all goods and services to rise and imposes severe inflation on the economy. He questions whether we should expect chicken prices to reach 200,000 tomans per kilogram and eggs to cost 15,000 tomans each. Tofighi expressed regret that the government's economic policies place a heavy burden on consumers, especially the working class and wage earners, stating that people have been left to face inflation and rising prices, which become more severe each year. Experts have also indicated that the published budget figures show an intensification of the inflationary trend next year. Hassan Mansour: The next year's budget will increase inflation and tighten the livelihood circle. The parliament approved the generalities of the government budget; military expenditures increased. The promise of 'four times' overtime for nurses in parliamentary and government sessions. The removal of 'government subsidies' from airplane fuel; an '11-fold' increase in fuel costs. A member of parliament announced a definite increase in gasoline prices next year. The beginning of the removal of cash subsidies for individuals under the pretext of 'being high-income.' An increase in salaries equivalent to 'four loaves of bread'; retirees protested the 'salary equalization plan.' A 200% increase in military expenditures in the Islamic Republic's 'borrowed budget.'