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Parliament Approves General Budget Proposal for 2018

Jan 26, 2026 January 26, 2026 2 min read 📰 Radio Farda
📋 Key Takeaway

The Iranian parliament approved the general budget proposal for 2018 after initially voting against it. The budget includes provisions for oil pricing and subsidy adjustments amidst ongoing economic challenges. This decision is significant as it reflects the government's struggle to manage economic expectations and public sentiment.

🔍 Quick Context Guide
💡 Bottom Line: The approval of the 2018 budget reflects the Iranian government's struggle to balance economic needs with public sentiment amid ongoing challenges.

👥 Key Players

Hassan Rouhani MENTIONED
President of Iran
"As the head of the government, Rouhani's policies and budget proposals directly impact Iran's economy and public welfare."
Ali Larijani MENTIONED
Speaker of Parliament
"Larijani plays a crucial role in legislative processes and mediating between the government and parliament."
Mohammad Baqer Nobakht MENTIONED
Government Spokesman
"He represents the government's stance on budgetary issues and communicates its policies to the public."
Head of the Court of Audit MENTIONED
Oversight authority
"This position is significant for financial accountability and can influence public perception of the government's fiscal management."

📰 What Happened

The Iranian parliament approved the 2018 budget proposal after initially voting against it, with significant adjustments regarding energy prices and subsidies. The budget reflects ongoing economic challenges and the government's need to manage public expectations.

  • The budget includes a provision to withdraw 50% from the foreign exchange reserve account due to reduced oil export revenues.
  • The budget sets the oil price at $55 per barrel and the US dollar at 3,500 Iranian tomans.

💡 Why It Matters

🇮🇷 For Iran: The approval of the budget is crucial for addressing economic stability and public welfare amid rising discontent over subsidy cuts.
🌍 Regional: The budget's provisions could affect Iran's economic relations with neighboring countries, particularly in energy markets.
🌐 International: International stakeholders, especially those involved in oil markets, will monitor Iran's economic policies and their implications for sanctions and trade.

📚 Background

Iran's economy has been under pressure due to sanctions and fluctuating oil prices, leading to debates over budget allocations and subsidies.

Iran's oil export challenges Economic sanctions on Iran
📡 Source: STATE MEDIA
📊 Confidence: 70%
The information is sourced from state-controlled media, which may present a government-favorable perspective.

After initial opposition, the majority of Iranian parliament representatives voted in favor of the general budget proposal by President Hassan Rouhani's government for the year 2018 on Wednesday, February 1st. Earlier, on Sunday of the same week, parliament had taken the rare step of voting against the proposal. Mohammad Baqer Nobakht, the government spokesman, emphasized that rejecting the budget would 'only waste 72 hours of the representatives' time and send a negative message to society.' While the Iranian government sought to increase energy prices in its proposal, the parliament's joint commission announced that energy prices would not increase in the next year's budget. Additionally, the cut of subsidies for several million citizens was another point of contention between the government and parliament. In this context, during the Wednesday session, Ali Larijani, the Speaker of Parliament, stressed that with changes to the government's proposal, 'efforts have been made to provide subsidies to all needy individuals.' Thus, on Wednesday, according to the official news agency of the Islamic Republic, IRNA, representatives approved the general budget for the next year with 182 votes in favor, 73 against, and 6 abstentions. Prior to this, Mohammad Baqer Nobakht, the head of the Planning and Budget Organization, and Ali Asghar Yousefnejad, the spokesman for the joint commission of parliament, also defended the 2018 budget in this session. With the approval of the general budget for 2018, according to the news website Khabar Online, Rouhani's government is now authorized by parliament to withdraw 50% from the country's foreign exchange reserve account to cover any shortfall resulting from reduced oil export revenues. In this budget proposal, the price of each barrel of oil is set at $55 and the price of each US dollar at 3,500 Iranian tomans. The 2018 budget comes with an increase of about 100 trillion tomans, while reports indicate that the share of the development budget for the next year has decreased by 11 trillion tomans and the projected budget for subsidies has decreased by 19 trillion tomans. In this regard, the head of the Court of Audit accused Rouhani's government of 'financial disorder' and 'selling the future,' while the government described the Court of Audit's report as 'incorrect and causing public confusion.'

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

Translation confidence: 85%

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