The Expediency Council Says the Budget Does Not Align with Khamenei's Demands

The high-ranking board of the "Expediency Council of the Islamic Republic" announced on Wednesday, December 26, during a session reviewing the budget bill for the upcoming year, that issues such as economic growth, productivity, and inflation control in the 1404 budget do not align with the general policies of the seventh development plan. According to reports from state media, the Expediency Council criticized the budget bill's targets in two areas: "economic growth" and "inflation control," calling for a solution to align these issues with Khamenei's directives as part of the "general policies of the system." Among these criticisms is the question of why an 8% growth target is not set in the budget bill and why "single-digit inflation" is not forecasted. For this reason, the Expediency Council deemed the budget inconsistent with the "general policies of the Supreme Leader" and referred the bill back to the government for amendments. A report presented by the "Economic Commission of the Council" pointed out that the projected economic growth rate in the next year's budget is between 2.8% and 3.2%, while the general policies target an 8% growth. Additionally, the 35% share of productivity in economic growth, which is one of the key objectives of the policies, has not been achieved in this budget. The spokesperson for the Economic Commission of this body, which operates under the Supreme Leader's command, stated that the inflation control outlined in the budget bill does not align with the general policies and declared that "inflation must be brought down to single digits over the next five years." This official further added that "the Economic Commission's investigations show that the inflation rate projected in the 1404 budget remains double-digit and is far from the set goals." Last September, Mohammad Shiri Jian, the Deputy for Monetary Policy at the Central Bank, stated that "estimates show that to achieve an 8% economic growth in 1403, the country needs about 11,500 trillion tomans in financial resources." Meanwhile, the Islamic Republic is facing challenges in meeting basic needs, including paying employee salaries and providing foreign currency for essential goods. Economic experts, warning of economic collapse, consider the promises of the 1404 budget regarding economic growth and inflation control to be unrealistic and far removed from the existing economic realities of the country. Reports indicate that the Research Center of the Parliament had previously reported an increase in the poverty rate in 1402 to 30.1%, meaning that one-third of Iran's population is unable to meet their basic needs, a figure that critics believe is much higher. They argue that if this figure is taken as a basis, considering the depreciation of the national currency this year and the lack of improvement in people's purchasing power, the figure has risen above 40%. Investigations by the Research Center of the Parliament also show that the country's economy, after four years of claimed growth above 4%, faced a 2.5% decline in the spring of 1403. This decline is attributed to power outages in industries, a drop in oil exports, and the government's contractionary budget policies. It has been claimed that economic growth in 1403 and 1404 will be 2.5% and 2.8%, respectively, which is below the 8% target of the Islamic Republic's seventh development plan. This part of the report from the parliamentary research arm also confirms the lack of a clear outlook for improving the economic situation of the people. Appliance sellers say, "Not selling is more profitable than selling." A member of parliament states that inflation will not decrease with the "removal of zeros." More than 80% of Iranian households are below the global poverty line. A warning from a member of parliament about the consequences of worker dissatisfaction in Iran continues the repercussions of the gas and electricity crisis; "greenhouse vegetables and fruits" will become more expensive.