Iran’s parliamentary budget committee has rejected the overall framework of the government’s 1405 (2026–27) budget bill, dealing an early setback to President Masoud Pezeshkian’s economic agenda amid soaring inflation and currency turmoil.
The Majlis’ joint budget committee voted 32–9 against the bill’s general outlines on Monday, citing concerns that the proposal would fuel inflation, further erode household purchasing power and rely on revenue assumptions lawmakers fear will not be met.
The committee said its report rejecting the bill will now be sent to parliament’s leadership for debate in an open session, where lawmakers will decide whether to return the budget to the government for revision.
The budget had been formally submitted to parliament last week, as Iran grapples with mounting fiscal pressures, a sliding rial and rising public discontent over living costs.
