Iran's parliament rejects Rouhani's budget bill

TEHRAN: Iran's conservative-dominated parliament on Tuesday rejected a budget bill for the next Iranian year put forward by the administration of the moderate President Hassan Rouhani, state television reported.

The broadcaster said that of the 261 lawmakers present from a total of 290, 148 voted against the bill while 99 were in favour, with the rest abstaining.

It is the latest development in the back and forth between parliament and the Rouhani administration since it presented the bill in early December.

The government will now have a two-week window to amend and return the bill to lawmakers, according to the parliament's ICANA news agency.

Government spokesman Ali Rabiei reacted by saying the administration is willing to modify the bill, but without "changing the overall structure and projecting unrealistic earnings."

Earlier on Tuesday, Rouhani had warned that any substantial change to the bill would "seriously damage the people's livelihood".

MPs have argued that the proposed government budget for the year beginning on March 21 is unrealistic, and could run a deficit and worsen inflation.

One of the their main complaints has been the government's projected oil sales of 1,992 trillion rials ($8.1 billion).

Critics say that is too optimistic, due to persisting US sanctions that former president Donald Trump reimposed on Iran in 2018 after withdrawing from the nuclear deal.

Rabiei slammed the parliament for politicising the process and said in contrast to their criticisms, they had "increased the budget's reliance on oil", had "boosted expenditure" and increased expected tax revenues.

Rouhani's administration has signalled a readiness to engage with US President Joe Biden, who took office on January 20, and who has likewise expressed a willingness to return to diplomacy with Tehran.

Rouhani dismissed criticism regarding oil sales in December, and said the projection was not dependent on sanctions being lifted.

"I believe we will produce and sell 2.3 million barrels of oil" per day, he said at a press conference.

"We have not devised this budget based on optimism, but on realism," he added, noting that Iran will sell as much "even if we are sanctioned."

Tehran has called on Washington to "unconditionally" lift sanctions imposed by Trump to salvage the nuclear deal.

It said it will return to full compliance with key nuclear commitments it suspended in 2019 when all parties fullfil what they agreed to do.