The recent scandal for the Iranian regime’s budget bill for 2024, which received 127 opposing votes against 90 in favor and 10 abstentions in the Majlis (parliament), is another sign of the regime’s deadlock and the failure of its efforts to keep the lid on its crises through warmongering. The budget has become the latest embarrassment for regime president Ebrahim Raisi.
On December 18, the state-run Tasnim news outlet quoted Majlis Speaker Mohammad Baqer Ghalibaf as saying, “One of the reasons that led to the rejection of the general outlines of the next year’s budget in the Majlis was that the 2024 budget, as the first budget of the Seventh Development Plan, did not align with the policies of the program.”
Ghalibaf warned about the “type of statesmanship” of Raisi and said, “We should not hesitate for a moment, and we should be concerned. We need a type of concern that can solve problems… We have problems in the type of governance and problem-solving.”
On December 18, the state-run Arman Daily newspaper described a portion of the “problem” in tax pressures and their social effects, stating, “The government has made efforts to balance the budget by increasing the share of tax revenues. Taxes, with a 75% share of total revenues, will constitute a major part of the government’s income in the coming year, showing a 50% growth compared to the current year.”
On December 18, the state-run Quds news website, wrote, “One of the members of Majlis stated his opposition to increasing value-added tax and said, ‘Price stability is the concern of the Majlis, and undoubtedly any increase will have repercussions in various sectors of society. However, raising it by up to 10% will cause concern in society.'”
Members of Majlis hesitate to say that the pressure of taxation and depriving impoverished people of bread is about strengthening repressive organs to confront protests. On November 22, the state-run Donya-ye Eqtesad newspaper wrote, “In Clause 4, subsection B of the 2024 budget bill, it is stated: In implementing subsection A of Article 102 of the Seventh Development Plan Law, for the purpose of strengthening the defense infrastructure of the armed forces, the government is obliged to allocate the equivalent of 1,340 trillion rials monthly, one-twelfth of it, to the General Staff Headquarters of the Armed Forces. In case this amount is not allocated, the National Iranian Oil Company is obliged to deliver the equivalent amount of crude oil or gas condensates to legal entities designated by the General Staff Headquarters, subject to the announcement of the Organization of Planning and Budget and observance of the shares specified in subsection A of this clause.”
The act of reaching into the pockets of the people for the expenses of repressive forces and special privileges for the “law enforcement” is not limited to this figure and similar examples.
On December 17, the state-run Fars News Agency wrote, “According to the government’s resolution, the law enforcement forces are authorized to import 2,000 passenger cars, prioritizing electric and hybrid vehicles.”
On December 18, the state-run Setareh Sobh quoted an economic expert as saying, “There is a direct relationship between liquidity and inflation. Increased liquidity leads to higher inflation, devaluation of the national currency, and a decrease in people’s purchasing power. In such a situation, the first group to be affected is the low-income strata of society. They are currently under pressure and facing numerous problems… On the other hand, this relationship is reciprocal. Increasing inflation leads to higher costs and reduced incomes. Therefore, the budget deficit will remain continuous, and the cycle of budget deficit and inflation, inflation and budget deficit, flows like a chronic disease in the body of the economy.”
It appears that the media outlets of the regime have also warned Khamenei about the eruption of explosive societal anger and the level of resilience of the people under heavy taxation. This anger has now intensified to the point where the smoke and sparks of unrest cannot prevent an inevitable explosion against the “ruling” establishment.
On December 7, the state-run Jomhouri newspaper, wrote, “The government has resorted to illegal measures of ‘money creation’ to address the budget deficit, but for the next budget, it has reduced income from oil sales and instead imposed heavy taxes and pressure on the society, and it is unclear how long the society can tolerate such pressures.”