Mahmoud Ahmadinejad sent Iran’s 1389 (March 21, 2010 to March 20, 2011) budget bill to the presidential office for planning and strategic oversight yesterday for implementation.  Meanwhile, reports point to the administration’s intent to amend the budget bill in order not to implement the original law passed by earlier by the Majlis assembly.  Prior to the new Iranian year (March 21, 2010), Ahmadinejad called for a referendum - an unprecedented event by itself - through a nationally televised program to resolve divisions between the administration and Majlis over the annual budget, prompting Alef website to refer to the president’s remarks as controversial and tension-creating.  

Another right-leaning website reported that “Differences between Majlis and the administration over 20 billion Tomans (i.e. $20 million) would not subside soon.”  According to Asre Iran, the tenth administration is angered over Majlis’s refusal to allocate 40 billion Tomans ($40 million) – Mahmoud Ahmadinejad has openly announced that he would not implement the subsidy reform bill – and intends to achieve its goal through introducing a budget supplement bill.  

Following that event, the head of the Majlis economic committee made remarks supporting the administration by claiming that the allocation of 20 billion Tomans was not enough for implementing the subsidy reform plan in 1389.  He told an Asre Iran correspondent: “The administration will present the 1389 budget supplement bill to the Majlis soon.”  With only a few days into the 1389 fiscal year, it would be unprecedented in the history of budget bills for the government to introduce a budget supplement bill only a few weeks into the new fiscal year.  This dispute however has not remained within the confines of senior officials. The paramount leader of Iran too has invited the administration to abide by the budget bill passed by the Majlis.  In light of this order, it seems as if the administration is planning to achieve its goal through the passage of a budget supplement bill.  

Majlis-Executive Branch Divisions Intensifies

The administration’s decision to introduce an unprecedented budget supplement bill is announced while Ahmadinejad’s referendum suggestion became more a political joke than a settling reality, as no one in the Majlis or other government branches paid much attention to the suggestion.  Even ayatollah Khamenei, who has repeatedly announced his support for the administration, said that the administration should abide by the bill passed by the Majlis, essentially making the suggestion of a referendum meaningless.  The evidence, however, points in the direction that the administration does not intend to back down on its request for the receipt of the extra 20 billion Tomans.  The debate rages on as many economists expect 1389 to be a difficult year for the Iranian economy.  In a report published by the State Expediency Council, Iran’s economic growth in 1389 is expected to be close to zero, and inflation is estimated at around 25 percent, in the best-case scenario.  Meanwhile, waves of unemployment and stagnation have afflicted or threatened industries and economic firms.