Contractionary fiscal policies included in the fiscal 2022-23 budget bill will lead to higher unemployment, Mohammad Reza Monjazeb, an economic expert said in an article published by the Persian daily Ta’adol. A translation of the text follows:
Will the adoption of contractionary policies in the present economic conditions, now that the country is facing high inflation, sanctions and isolation, produce desirable results? This is an important question, the answer to which will determine the future of the country.
Following the submission of the fiscal 2022-23 budget bill to Majlis [the Iranian Parliament], a wide swath of analytical commentary has been written on what propositions such a budget creates for the economy and the livelihood of people. Immediately after the bill was unveiled, it became clear that the government had tried to present a contractionary budget for the upcoming year, which choice will undoubtedly create certain conditions in the economy.
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