Iran's Parliament Approves 2018 Budget

Iranian parliament representatives approved the 2018 national budget, increasing the proposed government budget ceiling to 1,217 trillion tomans. According to the state news agency IRNA, on Thursday, February 22, parliament members approved the 2018 budget with 148 votes in favor, 38 against, and 3 abstentions from a total of 197 present representatives. While the budget ceiling proposed by President Hassan Rouhani's government was 1,194 trillion tomans, parliament increased it to 1,217 trillion tomans. The proposed budget ceiling for 2017 was about 1,150 trillion tomans. Thus, the 2018 budget ceiling represents an increase of about six percent compared to the 2017 budget. The current budget of the government was also increased from approximately 429 trillion tomans in the government's proposed bill to about 432 trillion tomans. Based on this decision, the government's budget compared to the 371 trillion tomans in the 2017 budget proposal shows an increase of 61 trillion tomans, or more than 16 percent. According to reports, the budget bill estimates the price of oil at $55 per barrel and the price of each dollar at 3,500 tomans. This comes as the Parliament Research Center had previously recommended a price of $49 for oil and 3,630 tomans for the dollar in the 2018 budget. On January 27, the parliament had unusually voted against the generalities of the 2018 budget bill, but ultimately approved it. Critics of the 2018 budget bill raised issues such as the lack of reduction in the size of the government despite the sixth development plan, neglect of agriculture and drought alleviation, the budget's lack of operational feasibility, lack of transparency in revenues, covering budget deficits through participation bonds, disregard for employment, dependence on oil, and increasing the share of the National Development Fund. According to several representatives, including Tayebeh Siawoshi, a member of the parliament's joint commission, the budget for religious institutions remained unchanged in the final budget approved by parliament. In recent months, the allocation of about 2 trillion tomans to religious seminaries in the 2018 budget has received significant attention, leading to a campaign on social media titled 'Change the Budget for the People.' Some sections of the budget for religious seminaries have increased compared to 2017. For instance, the budget for the Qom Seminary Services Center increased from 815 billion tomans in 2017 to 897 billion tomans in 2018, indicating a 10 percent increase. Meanwhile, political analyst Morteza Kazemian, residing in Paris, wrote in an article for Radio Farda about the government's proposed budget: 'Listing the institutions and organizations that consume public funds for ideological projects is not an easy task; however, it can be noted that the Supreme Council of Religious Seminaries has a budget of 440 billion tomans. To make this figure more tangible, one can refer to Ferdowsi University of Mashhad's budget of 327 billion tomans and Tabriz University’s budget of 256 billion tomans.' The publication of the budget for religious seminaries has drawn criticism, including from Ayatollah Yousef Sanei, a Shia cleric in Qom, who called the allocation of funds to religious seminaries 'a breeding ground for corruption.' Additionally, Mohammad Javad Fazel Lankarani, son of the famous Shia cleric Mohammad Fazel Lankarani, stated in an interview last week that his father was strongly opposed to government funding for religious seminaries. Nevertheless, Kazem Sediqi, the Friday prayer leader of Tehran, called for an increase in the budget for religious seminaries in his sermon on January 12. Previously, experts had repeatedly criticized the 'structural' problems of the budget system in Iran, warning that if these issues are not resolved, the country's administration would be 'disrupted.' Farshad Moameni, an economist, had previously criticized the 2018 budget, stating: 'About 90 percent of the total budget is being spent on the government itself, and with this number, it seems as if they are delivering a fatal blow to any reformist thought.' According to Moameni, 'One of the most important ways to save Iran is the issue of government reform, and the starting point for this reform and improving government efficiency is reforming the country's budgeting system.' Some officials of the Islamic Republic have attributed the protests in December to economic issues and matters such as price increases in the 2018 budget. Meanwhile, protesters in their demonstrations have voiced their objections to rising prices and have shouted political slogans against Ali Khamenei, the Supreme Leader of the Islamic Republic, Hassan Rouhani, the President of Iran, and in support of the Pahlavi dynasty.