Budget Deficit, Inflation and Economic Growth

The annual budget, as the most important economic and financial document of the country, has always been the subject of heated discussions and controversies. 
The budget deficit has been the focus of media attention, in view of its prominent role in inflation, the increasing pressure of sanctions on oil industry and the reduction of oil revenues. A deficit in budget resources leads to government and state-owned companies borrowing from the Central Bank of Iran, which leads to the growth of monetary base, money supply and ultimately inflation. 
These were stated by Tirdad Ahmadi, an economic expert, in an article for the Persian daily Donya-e-Eqtesad. A translation of the article follows: