Monday, January 19, 2026

Iran’s President Pezeshkian signals readiness to revise new year budget after parliamentary pushback

Iranian President Massoud Pezeshkian has formally informed parliament of the government’s readiness to introduce key revisions to the draft budget for the Iranian year 1405 (March 2025-March 2026), following the rejection of its general outline by the parliament’s Joint Committee.

In an official letter addressed to Parliament Speaker Mohammad Baqer Qalibaf, the president acknowledged lawmakers’ concerns, particularly regarding people’s livelihoods, salaries and benefits for employees, workers and retirees, taxation, and welfare support.

President Pezeshkian said the government agrees with many of the proposals raised during deliberations and is prepared to implement reforms while observing inflationary considerations and the overall budget ceiling.

According to the letter, the government is open to five main areas of reform, including increasing salaries and benefits for government employees and retirees; applying an effective tax rate aimed at improving the business environment; revising tax exemption thresholds for individuals and legal entities with an emphasis on protecting low-income wage earners; adjusting the value-added tax rate so that additional revenues are directed toward funding subsidized goods (electronic vouchers) for vulnerable groups; and expanding subsidies to strengthen household livelihoods.

President Pezeshkian also noted that, in response to parliamentary requests, the Planning and Budget Organization and the Ministry of Oil will submit detailed reports on oil revenues and expenditures, as well as the budget’s compliance with the country’s development plan.

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