Majlis Joint Commission—a parliamentary body responsible for reviewing the budget bill proposed by the government before it is put to a parliamentary vote—has made changes to the next fiscal year’s (March 2020-21) budget bill.
Accordingly, the next fiscal year’s (to start March 20) operating budget (revenues mainly from taxation and exports at the immediate disposal of the government) has increased by 15.8% from the government-proposed 4,845 trillion rials ($31.66 billion at the market exchange rate of 153,000 rials per dollar as of Sunday’s closing) to 5,609 trillion rials ($36.66 billion), Fars News Agency reported on Monday.
The revenues exclusive to ministries and governmental institutes, set at 792 trillion rials ($5.17 billion) by the government, has increased by 0.7% in the commission’s version to 797 trillion rials ($5.2 billion).
The above figures make up the total sum of general budget at 6,407 trillion rials ($47.45 billion) compared with the government’s proposed figure of 5,638 trillion rials ($41.76 billion).
The budget of government’s companies, banks and for-profit organizations which were put at 14,839 trillion rials ($96.986 billion) by the government, was reduced by 3.2% to reach 14,359 trillion rials ($93.84 billion.
The ceiling set for the total budget rose to 20,170 trillion rials ($131.83 billion) from what the government had proposed in December: 19,887 trillion rials ($129.98 billion).
Government expenditure for the next fiscal year (March 2020-21), which had been projected to hover around 3,670 trillion rials ($23.98 billion), was raised to 4,308 trillion rials ($28.15 billion). The commission also increased the capital expenditure budget (development budget) by 17.6% from 703 trillion rials ($4.59 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 ($3.07 billion).
Clauses associated with cash subsidies and emoluments were the main revisions that the commission members agreed upon, as they showed up at the empty chamber on Sunday.
In a backtrack, the commission approved the government’s proposal on Clause 14, the 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 has been extended since mid-November 2019 to 60 million people.
The budget of government’s companies, banks and for-profit organizations, which were set at 14,839 trillion rials ($96.986 billion), was reduced by 3.2% to reach 14,359 trillion rials ($93.84 billion)
In January, the lawmakers had proposed the pooling of the 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 ($2.9) to each and every Iranian on a monthly basis. The plan has been retained so far and nearly 78 million of 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 ($158.16 million) through the so-called Livelihood Assistance Program that started on Nov. 19, 2019.
Members of the Majlis Joint Commission also approved the new payment increase for employees, pensioners and teachers who receive below 28 million rials ($183) monthly. Their vote gave the government a mandate to increase employees, pensioners and teachers’ monthly payment to 28 million rials, provided that such a rise does not exceed 50% of their current year’s wages. Also, the government was tasked to increase by 15% the wages of employees who receive between 28 million rials and 60 million rials ($392) per month.
The outbreak of cases of coronavirus among a few Iranian lawmakers has led to the closure of the open sessions of the parliament, which consequently leaves the fate of next year’s budget in the balance.
Normally, the commission would have had 45 days to bring the budget bill to the open session of the parliament since the budget day on December 7, 2019, and the parliament-approved budget having secured the final endorsement of the Guardians Council—the body in charge of ascertaining the constitutional and Islamic nature of all laws—before the advent of the new Iranian year on March 21.
Under the new conditions, the Majlis Presiding Board is mulling over utilizing new mechanisms, such as organizing videoconferencing to secure lawmakers’ votes on the country’s next year’s budget.
The parliament-approved budget needs the final endorsement of the Guardians Council—the body in charge of ascertaining the constitutional and Islamic nature of all laws.
Members of the Iranian Parliament, also known as Majlis, rejected the outlines of the budget bill last week.
Mohammad Esmaeil Saeedi, a member of the joint commission, was quoted as saying by IRNA on Tuesday that in view of the fact that the revision of the bill by the government means the bill will in effect be put to vote by the next parliament, which is time-consuming, it has been decided to finalize the bill by the 10th parliament.
The official said all efforts will be made so that the budget is ready before the current fiscal year ends (March 19).
He explained that opponents of the bill mainly cite overestimations in the bill's revenue forecasts, saying oil sales will not be enough to cover the estimates.
"There is no sign of structural reform in the budget. The commission cannot afford to solve this issue, but it will make changes to revenues and expenditures," he said.
Iranians went to polling stations to cast their votes on Friday in the 11th round of parliamentary elections.
The final results indicate that principlists have won an overwhelming majority in the parliament and have swept all seats of the key Tehran constituency.
In several constituencies, the election has gone to a second round set for April 17. The first session of the new Majlis is scheduled to convene on May 28.
The other major political camp, namely the reformists, whose campaign was marred by mass disqualifications by the electoral watchdog, Guardians Council, will only form a tiny minority in the conservative-controlled legislature.
Majlis Joint Commission had initially approved the outlines of the bill on Dec. 25.
