Al-Monitor | Navid Kalhor: With the�recent�wave of protests�in Iran igniting�debate over the government's�budget bill for the next Iranian year (beginning March 20), it is important to understand�how President Hassan Rouhani's�administration�has been approaching the matter.


In the bill Rouhani submitted�to parliament Dec. 10, the government�s�general budget�is set at�$103 billion,�6.1% higher than the previous budget�in rial terms. The general budget�excludes the state-owned enterprises, which are included in the much larger total budget. Given a�projected inflation rate of at least 10% over the coming year, the general budget is set to be contractionary in real terms.

Three main points can be made about the�elements of the budget bill: taxes and sales of debt securities are expected to be 11.2% and 26.6% higher,�while�oil, gas and petrochemicals�proceeds are set to fall by 11%; current expenditures are predicted to surge by about 9%; and funding�for infrastructure spending will�decrease�the most,�as in preceding years.

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