Parliament Debates Most Contractionary Budget in Decades

Debate continues in Iran's Majlis over the draft budget bill for Iranian year 1405, submitted by President Pezeshkian on December 23. Economists describe it as the most contractionary budget in decades, with an overall ceiling increase of less than 5% against inflation above 40%, amounting to a real contraction of roughly 35% in government spending power. The bill proposes only a 20% raise for public sector wages, widely described as 'paltry and insulting' by labor associations given that inflation has eroded purchasing power by more than half.