Iran parliament rejects president's budget proposal

Iran’s parliament today rejected a draft state budget presented by President Hassan Rouhani’s government as factional tensions rise ahead of presidential elections next year, Reuters reported.

The rejection came with a vote of 148 to 99 as hardliners, who already control parliament and the judiciary, appear poised to win the presidency in the June polls. Rouhani cannot run, having served two consecutive four-year terms.

In a session broadcast live on state radio, opponents of the budget, which had been amended by a parliament committee, said its heavy deficit and unrealistic oil income forecast would burden an economy already hit hard by US sanctions.

The government is expected to submit a new draft budget within two weeks, and if the fiscal impasse is not resolved a temporary budget would have to be passed for one to three months, senior lawmakers told Iranian news agencies.

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