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🔴 Breaking ❓ Unknown

News Bombshells of the 97 Budget

Jun 7, 2026 June 7, 2026 12 min read 📰 Radio Farda
📋 Key Takeaway

Iran's budget proposal for 1397 (2018) has been presented, highlighting significant cuts to cash subsidies and increased travel fees, which could lead to confusion among subsidy recipients. The government aims to reduce dependency on oil revenue while increasing tax revenue, but the proposed changes may affect millions of citizens. This budget is crucial as it reflects the government's priorities and economic strategy amidst ongoing challenges.

🔍 Quick Context Guide
💡 Bottom Line: The budget cuts and subsidy removals indicate a shift in Iran's economic policy.

👥 Key Players

Hassan Rouhani (حسن روحانی) ACTOR
President of Iran
"Hassan Rouhani emphasized during the presentation of the budget proposal."
Adel Azar (عادل آذر) QUOTED
Head of the Court of Audit
"Adel Azar, the head of the Court of Audit, had previously stated that in the 97 budget proposal, about 30 million subsidy recipients in the upper deciles of society would be removed."
Mohammad Reza Pourabrahimi (محمدرضا پورابراهیمی) QUOTED
Head of the Economic Commission of the Parliament
"Mohammad Reza Pourabrahimi, the head of the Economic Commission of the Parliament, also stated that the most important issue in next year's budget is the targeting of subsidies."
Khorasan Newspaper QUOTED
Media outlet
"The newspaper Khorasan, in its front page titled 'News Bombshells of the 97 Budget,' reports that..."
Iran Newspaper QUOTED
Media outlet
"The Iran newspaper, close to the government, published on its front page on Tuesday the news of President Hassan Rouhani's presentation."
Jahan San'at Newspaper QUOTED
Media outlet
"The Jahan San'at newspaper has mentioned the 'confusion of subsidy recipients' as one of the consequences of the next year's budget proposal."

⚡ Actions

Iranian government ANNOUNCE subsidy recipients, energy prices
"The reduction of 33 million subsidy recipients, a threefold increase in foreign travel fees, and a 17 trillion tomans increase in energy prices."
Confidence: 90%
Hassan Rouhani PRESENT Islamic Consultative Assembly
"Hassan Rouhani emphasized during the presentation of the budget proposal to the Islamic Consultative Assembly."
Confidence: 90%
Iranian government TARGET subsidy recipients
"It seems that about 23 million people will be removed from the number of subsidy recipients."
Confidence: 80%

📰 What Happened

Iran's government proposes budget cuts affecting millions of subsidy recipients and increases in energy prices.

  • Iranian government announce subsidy recipients, energy prices
  • Hassan Rouhani present Islamic Consultative Assembly
  • Iranian government target subsidy recipients

💡 Why It Matters

🇮🇷 For Iran: Because it significantly affects the livelihoods of millions of subsidy recipients.
🌍 Regional: Because it may lead to increased economic instability in Iran.
🌐 International: Because it reflects Iran's economic challenges amid sanctions.

📚 Background

The budget cuts and subsidy removals indicate a shift in Iran's economic policy.

📝 Key Evidence

"The reduction of 33 million subsidy recipients..."
→ This proves the government's action to cut subsidies.
"The government plans to receive 12 trillion and 300 billion tomans more from tax revenue next year..."
→ This indicates the government's focus on increasing tax revenue.
📡 Source: STATE MEDIA
📊 Confidence: 80%
The source is a state-affiliated media outlet, potentially reflecting government perspectives.

The newspaper Khorasan, in its front page titled "News Bombshells of the 97 Budget," reports that "the reduction of 33 million subsidy recipients, a threefold increase in foreign travel fees, and a 17 trillion tomans increase in energy prices for job creation are three major news items in the government's budget proposal." The newspaper states that the 97 budget proposal "contains many black and white points," noting that "the increase in tax revenue and decrease in oil revenue has reduced the 97 budget's dependence on oil, while increasing reliance on debt securities sales and participation has somewhat strengthened the future selling aspect of the budget. The 3500 tomans dollar rate and 55 dollar oil price indicate the government's budgetary caution. Additionally, the forecast for an increase of up to 17 trillion tomans in energy carrier prices and its allocation for employment reflects the government's employment approach for the coming year." The Iran newspaper, close to the government, published on its front page on Tuesday the news of President Hassan Rouhani's presentation of the next year's budget proposal to the Islamic Consultative Assembly with the headline "Different Budget for 97," stating that "the President presented the 97 budget proposal to the parliament on Sunday" and said that "the basis of this proposal is; comprehensive employment, poverty alleviation, and justice creation." According to this newspaper, the "budget ceiling" for the coming year is 1194 trillion tomans, and the "forecast price for each barrel of oil," which was set at 50 dollars in the current budget, is determined to be 55 dollars in the next year's budget proposal, while the "calculated dollar rate," which was 3300 tomans this year, is set at 3500 tomans for the next year. The budget allocated by the twelfth government for "cash subsidies" in 97 is 23 trillion tomans. This budget was 42 trillion tomans this year, meaning a reduction of 19 trillion tomans, which translates to the removal of over 20 million from cash subsidy recipients next year. The Iran newspaper stated that the projected "oil revenue" for 97 is 106 trillion tomans and the projected "tax revenue" for next year is 128 trillion and 700 billion tomans. The tax revenue this year was 116 trillion and 400 billion tomans, indicating that the government plans to receive 12 trillion and 300 billion tomans more from tax revenue next year than this year. The "purchase of military absence" next year will also be possible for "those with more than 8 years of absence" as it was in 96, and the final amount that this group must pay for service purchase will be determined and approved by the Islamic Consultative Assembly. The Iran newspaper wrote that Hassan Rouhani emphasized during the presentation of the budget proposal to the Islamic Consultative Assembly that "employment, economic growth, poverty alleviation, reducing inequalities, dynamism in main and important projects, and the presence of the private sector in the country's economy as the main demands of the people in the 96 elections have been pursued in this proposal." The Jahan San'at newspaper has mentioned the "confusion of subsidy recipients" as one of the consequences of the next year's budget proposal, stating that "there are many ambiguities regarding the proposed budget for cash subsidies for households, and it seems that the confusion of subsidy recipients in 97 will not be far-fetched." This newspaper wrote that it seems that about 23 million people will be removed from the number of subsidy recipients, meaning one-third of subsidy recipients will be eliminated, while Adel Azar, the head of the Court of Audit, had previously stated that in the 97 budget proposal, about 30 million subsidy recipients in the upper deciles of society would be removed. Meanwhile, Mohammad Reza Pourabrahimi, the head of the Economic Commission of the Parliament, also stated that the most important issue in next year's budget is the targeting of subsidies, which will amount to 23 trillion tomans, meaning that about 40 percent of subsidy recipients will be eliminated next year, and the parliament must conduct a thorough review of this proposal. Jahan San'at also wrote: "The government's proposal to change the name of the Targeted Subsidy Organization to the Social Welfare Fund raises the question of whether the government intends to eliminate subsidies or has another goal in mind with this action?" The Etemad newspaper has evaluated the government's action in "removing Table No. 17" from the budget proposal as one of the most important actions of the government in next year's budget proposal, highlighting it on its front page on Tuesday. This newspaper wrote: "Perhaps one of the most significant positive reforms in the 97 budget relates to the removal of the controversial Table No. 17. A table based on which, over the years, several cultural institutions have been funded from the state budget without being supervised by the Inspection Organization, the Court of Audit, and other supervisory bodies, and have not been accountable to the government and the nation." Furthermore, "when such budgets are allocated to such institutions, it is likely that the specific political and cultural tastes of officials in various governments influence which cultural institutions receive these budgets and which do not." Etemad simultaneously reported under the headline "Fees or Penalties" about the threefold increase in "exit fees from the country," stating: "Amidst the reductions and increases in budget line items across various government sectors, one of the items in the table related to government revenue tariffs in this multi-hundred-page proposal received more analysis and news coverage than others. In the third item of Table No. 16 of the 97 budget proposal, the amount of exit fees from the country is stated as 220 thousand tomans." In the same item, "the exit fee for pilgrims from the country is stated as 110 thousand tomans." This newspaper recalled that "until now, this amount was 75 thousand tomans for air travel, 37 thousand and 500 tomans for Hajj and religious pilgrimage, and 25 thousand tomans for land and sea travel. Additionally, in another section of this item, it is stated that the amounts determined for the second trip will increase by 50 percent and for the third and subsequent trips by 100 percent, but the noteworthy point is that it has been announced that only 40 thousand tomans of this amount will be allocated for the development of infrastructure and tourism facilities and support for cultural heritage and handicrafts." Alireza Khaef, the vice president of the Tourism Commission of the Tehran Chamber of Commerce, emphasized in a note in Etemad that "the determination of exit fees from the country is fundamentally a wrong decision, and it does not matter how much this tariff is." He wrote: "Personally, I have never seen a separate fee set for leaving a country anywhere in the world. It seems that the government intends to provide part of the budget that it cannot secure with this decision." The author of this newspaper noted that "the main question is why the government charges citizens who pay taxes and various fees again under a new title," writing: "For example, if a citizen wants to travel to Turkey for the third time, the ticket price is 750 thousand tomans, and they must also pay 400 thousand tomans in fees. The ratio of these numbers clearly indicates the irrationality of this decision," adding that such a decision "may lead to a decrease in people's foreign travel, which will adversely affect the airline industry and the economy of airlines, and on the other hand, if the government's intention is for people to travel less for tourism abroad, it should be noted that tourist destinations and facilities do not have enough diversity and attractiveness to meet the needs of tourists." The Etemad newspaper also published several tables providing more information about the budget proposal, including noting that "the 97 budget, like previous years, has a budget line for promoting and strengthening religious and Islamic affairs in the country," which allocates "about 1 trillion and 884 billion tomans to seminary centers and 436 billion and 45 million tomans to the Islamic Propaganda Organization from the 97 budget." Meanwhile, the budget for Tehran University in 97 is set at 884 billion tomans, the budget for Sharif University of Technology at 335 billion tomans, and the budget for Amir Kabir University of Technology at 276 billion tomans. According to Etemad, in addition to the main budget of the Islamic Propaganda Organization, "centers such as the Prayer Establishment Headquarters will receive 22 billion and 900 million tomans, the Art House of the Islamic Propaganda Organization will receive 84 billion and 700 million tomans, and the Islamic-Iranian Progress Model Center will receive 7 billion and 920 million tomans as subunits of the Islamic Propaganda Organization in the 97 budget." Additionally, in the 97 budget proposal, the "Institute for the Publication of Imam Khomeini's Works, which is managed under Hassan Khomeini, is allocated 71 billion and 340 million tomans," and the "Imam Khomeini Educational and Research Institute, affiliated with Mohammad Taghi Mesbah Yazdi, is allocated 28 billion tomans, and the Al-Mustafa International University is allocated 305 billion and 120 million tomans in this budget planning." Kayhan, in its front page titled "New Promise from Rouhani; All of the Government's Promises are Reflected in the 97 Budget," wrote: "The President, by presenting the 97 budget proposal, conditioned the implementation of past promises on the approval and execution of next year's budget without changes." The Jam-e-Farda newspaper reflected Hassan Rouhani's request from the tenth parliament for "help to overcome the crisis" and dedicated its front page photo to the gathering of depositors of the Caspian credit institution in front of the parliament on the day President Rouhani presented the 1397 budget proposal. This newspaper wrote: "On the day that President Rouhani presented the 97 budget to the Islamic Consultative Assembly, one of the government's problems in front of the parliament was displayed." In its editorial titled "Overcoming the Crisis," this newspaper wrote: "The Rouhani government, regardless of the political shortcomings it may have, enters the next year with an unclear global outlook, a social credit deficit, and a wounded economy, and the only apparent encouragement that it seems to bring to the end of 97 is a powerful consensus at the highest levels of political power regarding the seriousness of the upcoming situation." Jam-e-Farda emphasized that "there will be no miracle, as the economy is not a realm of miracles," stating: "The parliament's assistance to the government in confronting budgetary excesses is a small part of this cooperation, and reformists in the parliament will view the budget issue with this approach." The Bahar newspaper focused on the statements of the commander of the Tehran Corps regarding the establishment of "Corps patrols in Tehran neighborhoods," reporting that Mohammad Reza Yazdi, the commander of the Mohammad Rasoulallah Corps, announced during a speech at the Tehran City Council on Sunday that "patrols will be established by the Corps to prevent theft and also to collect thugs in Tehran." According to this newspaper, the commander of the Tehran Corps emphasized that "no one can say there is a disagreement or division between the police and the Corps or between the Corps and the municipality," stating that "we move in tandem with the mayors" and "why should the collection of thugs only be the responsibility of the police? We should assist the police in matters such as collecting thugs, and we in the Corps and Basij have initiated this matter." The Bahar newspaper assessed another part of Mohammad Yazdi's statements as significant, writing that this Corps commander addressed the members of the Tehran City Council, who are supported by reformists, saying: "We are your sons, brothers, and sisters; we may have violations or mistakes; someone in our uniform or someone posing as us may commit violations and mistakes, but accompany us and criticize us, but not from public platforms; rather, call us. Our place is also specified, and our office is open to you. Mr. Aref has also been visiting our office with the representatives of Tehran." The Vatan-e-Emruz newspaper, while publishing a report about "the end of the Foreign Minister's visit to Tehran," wrote that currently at least "four British nationals" are imprisoned in Iran on charges of "acts against national security." This newspaper reported that "in Boris Johnson's meetings with Mohammad Javad Zarif and Hassan Rouhani," the issue of the arrest and imprisonment of "Nazanin Zaghari" was raised, stating that Nazanin Zaghari, a dual Iranian-British national who entered Iran in 95 "under the pretext of conducting journalism training classes," was sentenced to five years in prison by the Revolutionary Court on charges of attempting soft overthrow. The Vatan-e-Emruz newspaper, close to the Front of Steadfastness, noted that the British Foreign Ministry announced that Boris Johnson had "direct and transparent discussions" with Hassan Rouhani regarding regional issues, bilateral matters, and the cases of dual nationals, writing: "The British Foreign Office's mention of Johnson's discussions with Rouhani about the 'cases of dual nationals' indicates that the British Foreign Minister has plans to follow up on the status of other detained British nationals in Iran besides Nazanin Zaghari." This newspaper emphasized that "currently, four British nationals are imprisoned for acts against Iran's national security," writing that "after Nazanin Zaghari, the most well-known is a person named Kamal Foroughi, who has been accused of espionage in the oil and energy sector," and noted that "David Cameron, the former British Prime Minister, once wrote a letter to Hassan Rouhani regarding Kamal Foroughi. Philip Hammond, the then Foreign Secretary, also followed up on Foroughi's case during his visit to Iran." Vatan-e-Emruz did not mention the names of the other two Iranian-British citizens but wrote: "It seems that the dual nationals currently imprisoned for espionage and acts against national security in Iran are of such importance to the British that the British Foreign Minister's visit to Iran, especially amidst the chaos in West Asia, is overshadowed by this issue."

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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