Iran News: Infighting Intensifies in Parliament Over 1404 Budget as Regime Prioritizes Self-Preservation

Staff WriterOctober 31, 2024
Iran News: Infighting Intensifies in Parliament Over 1404 Budget as Regime Prioritizes Self-Preservation
Infighting erupted in Iran’s parliament as regime factions clashed

Written by
Mahmoud Hakamian

Infighting erupted in Iran’s parliament as regime factions clashed over Masoud Pezeshkian’s budget proposal for the Persian year 1404 (March 2025 – March 2026), which devotes a substantial 200% increase to military funding while cutting essential subsidies and leaving development projects critically underfunded.

The budget, approved by 146 votes against 96 in a session marred by heated exchanges, reflects the regime’s focus on security at the expense of Iran’s ailing economy. While some MPs criticized the budget’s heavy reliance on national reserves, others used the debate to distance themselves from the administration or to maneuver for political advantage in the ongoing power struggle. The government, meanwhile, remains unresponsive to public welfare, clearly more concerned with the threat of social backlash than with addressing citizens’ growing hardships.

The infighting over Iran’s 1404 budget in parliament reveals deep divisions within the regime, as MPs attack each other and the administration over how best to safeguard regime survival amid fears of economic collapse and potential social unrest. Far from addressing public concerns, the parliament session laid bare the jockeying of regime factions over power and resources, as each group sought to blame others for the country’s spiraling inflation and deficit spending.

MP Nasrollah Pejmanfar was among those criticizing the budget’s reliance on government bonds and withdrawals from the National Development Fund, calling it a “debt-based gamble” that masks serious shortfalls. Pejmanfar did not object to the bloated defense budget itself but attacked the government’s lack of transparency, especially regarding the 4-billion-toman cut in subsidies for essential goods, without a clear strategy for alleviating further public strain. “This is a budget full of flaws,” he remarked, noting that the 540 trillion tomans authorized by the Supreme Leader should go to development projects but are instead funneled into operational expenses.

Hossein Samsami warned the budget would only extend last year’s inflationary pressure, noting that recent price hikes on essentials have already reached 30-40%. He labeled the budget’s policies “seeds of inflation” planted in last year’s planning, which will drive up prices further in 1404. Samsami cited the projected 40% gasoline price hike as a move that could fuel serious economic grievances, effectively stoking what he called “economic warfare” against the Iranian people, weakening the currency, and pushing the population toward further hardship and potential unrest. Samsami explicitly stated, “If you want to increase the people’s discontent, vote in favor of the 1404 budget bill.”

MP Hadi Ghavami argued that the unchecked spending in the budget will worsen regional inequalities and exacerbate social tensions, pointing to the impossibility of hitting even modest economic targets, such as the 35% Gini index goal. Ghavami derided the administration’s disregard for productivity, noting, “The productivity rate will remain zero, just like previous decades.” His opposition to the budget reflects the regime’s deeper conflicts over distribution, with factions keen to shift responsibility for the regime’s economic woes onto the administration.

Mojtaba Zolnour echoed similar criticisms but honed in on the way military spending was presented in the budget, now embedded in the total figures to make it appear expansionary. This break from past practice, where military funding was kept off-budget, represents the government’s attempt to show loyalty to the Supreme Leader’s demands without addressing the underlying fiscal imbalance. Zolnour noted the inclusion of this figure artificially inflated the budget cap by 7.8%.

Official figures on military spending are largely symbolic, with real funding for regime crackdowns and proxy warfare kept off the books. Covert budgets ensure financial flows to the IRGC, Quds Force, and allied militias, allowing unchecked spending on repression and regional militancy beyond public accountability.

Another MP, Hossein Ali Hajideligani, focused his critique on the lack of transparency in gasoline imports, accusing the government of hiding crucial details while pressing parliament to sign off on the budget. He emphasized that MPs should be informed of the social and political implications of a likely gasoline price surge before any final decisions are made.

MP Jafar Ghaderi highlighted the unrealistic tax expectations placed on industries facing energy shortages, warning that summer electricity cuts and winter gas shortfalls would undermine any revenue projections. He argued that the administration’s refusal to acknowledge these issues could destabilize an already strained society, fueling potential unrest.

Finally, Mohammad-Taghi Naqdali accused the government of misrepresenting its usage of the 540 trillion tomans from the National Development Fund, which was meant for development but instead diverted to operational expenses. His analogy compared the situation to weighing meat and a cat, only to find out both add up, emphasizing the regime’s deception in hiding economic shortfalls.

Furthermore, factional disputes intensified as MP Hamid Rasaee targeted the administration for keeping Mohammad-Javad Zarif, Pezeshkian’s senior advisor, in a key advisory position. Labeling it a “disregard for national interests,” Rasaee’s comments highlight the fierce internal strife within regime circles, while others, like Zolnour, protested the administration’s repeated defiance of parliamentary objections by reappointing contentious figures. The blame-shifting and infighting expose a fractured regime, united only by its overriding aim of survival, regardless of public welfare or economic stability.

Staff WriterOctober 31, 2024
Arab-Islamic Committee in Defence of Ashraf
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