By Published On: May 27, 2023Categories: NEWS
As the Persian Year of 1401 came to an end in mid-March 2023, Iranian President Ebrahim Raisi presented a rosy picture of the country's fiscal health, confidently stating that his government had avoided any budget deficit.

As the Persian Year of 1401 came to an end in mid-March 2023, Iranian President Ebrahim Raisi presented a rosy picture of the country’s fiscal health, confidently stating that his government had avoided any budget deficit.

 

In stark contrast to his assertion, figures indicated a staggering deficit of 4.6 quadrillion rials ($8.8 billion) for the 2022-2023 budget year.Experts were taken aback by the unprecedented size of the deficit. However, Rahim Mombeini, the Deputy Head of the Planning and Budget Organization, revealed on May 21 that the actual deficit was considerably higher, at approximately 7.9 quadrillion rials.

 

The admission highlighted the scale of the economic crisis and underlined the regime’s failure to stabilize the system, contrary to the hopes of Supreme Leader, Ali Khamenei.In early May, the regime’s inadequacies started facing criticism from within its own ranks. Moin-ol-din Saidi, a member of parliament, expressed his belief on May 7 that Raisi’s administration was ill-equipped to tackle the overwhelming challenges, labeling its economic actions as indefensible.

 

By May 20, even the Keyhan daily, Khamenei’s mouthpiece, admitted that Raisi’s government had not delivered relief to the people, with housing prices and consumer goods costs continuing to soar.The recognition of the alarming economic situation points to a precarious future. The regime’s plan to offset the deficit by raising energy prices risks further inflaming an already tense situation.

 

A similar move in November 2019 sparked widespread unrest, yet the regime appears ready to tread the same dangerous path again, due to the urgency of resolving the budget crisis.

A similar move in November 2019 sparked widespread unrest, yet the regime appears ready to tread the same dangerous path again, due to the urgency of resolving the budget crisis.

 

Mahmoud Khaghani, the Former Director General of the Ministry of Oil, highlighted the inherent risk, warning that the government’s decision to alter fuel prices could have dire consequences.Interestingly, President Raisi has elected to augment revenues by pushing for a dramatic 62% increase in taxes. The IRNA News Agency reported that tax revenues were expected to surge to 5,270 trillion rials in the coming period, up from the current year’s estimated 3,250 trillion rials.

Iranians earning 50 million rials or more are now subject to tax, despite a meager 10% proposed increase in the salary base that doesn’t match the skyrocketing inflation, officially pegged at around 50%.

Consequently, many Iranians could find themselves within this income bracket and be liable to tax.Simultaneously, a significant portion of the 2022-2023 budget is earmarked for military entities controlled by Khamenei, including the Revolutionary Guards, the Army, and the Basij militia.The planned increase in fuel prices or taxes could spark a new wave of anti-regime protests, adding to the regime’s crises.

 

On May 22, the state-run Bahan News cautioned, "We should await protests coming back to streets and any incident can cause a social explosion and turn to another revolt."

On May 22, the state-run Bahan News cautioned, “We should await protests coming back to streets and any incident can cause a social explosion and turn to another revolt.”

 

 

 


MEK Iran (follow us on Twitter and Facebook), Maryam Rajavi’s on her siteTwitter & Facebook, NCRI  (Twitter & Facebook), and People’s Mojahedin Organization of Iran – MEK IRAN – YouTu

 

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