Majlis Funds Government Operations; Postpones Second Phase of Subsidy Reforms

The Iranian parliament, Majlis, today by an overwhelming majority passed a continuing resolution funding the government operations for the first two months of the new Iranian calendar year that starts on 21 March. The current Majlis, citing the late submission by President Ahmadinejad of the government’s annual budget, had decided to send the budget resolution to the newly elected Majlis, with the government running out of funds next week. Today’s passage of the continuing resolution will fund the government operations for the next two months at 220,000 billion rials, equivalent of approximately $11.5 billion in today’s free market exchange.

Meanwhile, in a setback for the government’s subsidy reform program, the parliament postponed to next July the start of the second phase of the reforms. The reforms, consisting of the removals of more government subsidies during this phase, were to begin this month.