As per an executive order by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei, next year’s budget bill (March 2020-21) has been sent straight to the Guardians Council—the body in charge of ascertaining the constitutional and Islamic nature of all laws—without being discussed in the open sessions of the coronavirus-hit parliament.
As Asadollah Abbasi, spokesman of Majlis Presiding Board told IRNA, "in view of the most recent outbreak of coronavirus and as per Article 85 of the Iranian Constitution" parliamentarians reached a consensus to assign Majlis Joint Commission—a parliamentary body responsible for reviewing the budget bill as well as five-year development plans proposed by the government before it is put to a parliamentary vote—the power to submit its version of the bill to the Guardians Council.
Article 85 reads, “Membership in the Islamic Consultative Assembly (Iranian Parliament) is vested in an individual and cannot be delegated to another person. The assembly cannot allocate the power of legislation to a person or a commission. However, in urgent cases, it can assign to its own internal commissions the power to legislate certain laws, in accordance with Article 72. In this case, the laws will be implemented experimentally and for a period of time that is specified by the assembly. Their final approval will be determined by the assembly.
“The Islamic Consultative Assembly can, in accordance with Article 72, allocate to the government or appropriate commissions the task of permanent ratification of the articles of association of the state companies, institutions and establishments or government-affiliated ones. In this case the decisions of the government must not differ from the principles and decrees of the official religion of the country or the constitution; as indicated in Article 96, the Guardians Council evaluates this matter.”
The 12-member Guardians Council has 20 days to weigh in on the bill as of Tuesday, March 3, according to Abbasali Kadkhodaei, spokesman of the council.
The outbreak of cases of coronavirus among a number of Iranian lawmakers has led to the closure of the open sessions of the parliament until an unspecified future date.
Joint Commission Changes
On Monday, Fars News Agency reported that the Majlis Joint Commission had made changes to the next fiscal (March 2020-21) budget bill.
Accordingly, the next fiscal year’s (to start March 20, 2020) operating budget (revenues mainly from taxation and exports at the immediate disposal of the government) increased 15.8% from government-proposed 4,845 trillion rials ($31.46 billion at the market exchange rate of 154,000 rials per dollar as of Monday's closing) to 5,609 trillion rials ($36.42 billion).
Revenues exclusive to ministries and governmental institutes, set at 792 trillion rials ($5.14 billion) by the government, have increased by 0.7% in the commission’s version to 797 trillion rials ($5.17 billion).
The above figures make the total sum of general budget reach 6,407 trillion rials ($41.6 billion) compared with the government-proposed figure of 5,638 trillion rials ($36.61 billion).
The budget of government companies, banks and for-profit organizations which was put at 14,839 trillion rials ($96.35 billion) by the government was reduced by 3.2% to reach 14,359 trillion rials ($93.24 billion).
All in all, the ceiling set for total budget rose to 20,170 trillion rials ($130.97 billion) from what the government had proposed in December, that was 19,887 trillion rials ($129.13 billion), Fars News Agency reported on Monday.
Government expenditure for the next fiscal year, which had been projected to hover around 3,670 trillion rials ($23.83 billion) was raised to 4,308 trillion rials ($27.97 billion). The commission also increased the capital expenditure budget (development budget) by 17.6% from 703 trillion rials ($4.56 billion) to 827 trillion rials ($5.4 billion).
Earnings from the sales of treasury bonds, as estimated by the commission, indicate no change compared with what the government had projected: 470 trillion rials ($3.05 billion).
Clauses associated with cash subsidies and emoluments were the main revisions agreed upon by the commission members, as they showed up at the empty chamber on Sunday.
In a backtrack, the commission approved the government’s proposal on Clause 14, which pertains to separate payments of next year’s revenues gained from the implementation of the Targeted Subsidies Law of 2010 to 78 million people and those earned from raising gasoline price, which is in effect granted since mid-November 2019 to 60 million people.
In January, the lawmakers had proposed the pooling of next year’s revenues and their equal redistribution among 78 million Iranians.
The Targeted Subsidies Law of 2010 authorized the reduction of food and energy subsidies, and instead allowed the payment of 455,000 rials ($2.95) to each and every Iranian on a monthly basis. The plan has been retained and nearly 78 million Iranians currently receive the monthly grant of cash subsidies.
Cash transfer to people as compensation for higher gasoline prices were granted to 60 million people. They received cash support worth 24,200 billion rials ($157.14 million) through the so-called Livelihood Assistance Program that started on Nov. 19, 2019.
Members of Majlis Joint Commission also approved the new payment increase for employees, pensioners and teachers who receive below 28 million rials ($181.81) monthly. Their vote gave the government a mandate to increase the monthly payment of employees, pensioners and teachers to 28 million rials, provided that such a rise does not exceed 50% when compared with their current year’s wages.
The government was also tasked with increasing by 15% the wages of employees who receive between 28 million rials and 60 million rials ($389.61) per month.
