TEHRAN – Iran’s cabinet on Sunday approved the general framework of the government’s budget bill for the Iranian year 1405 starting late March 2026, during a meeting chaired by President Masoud Pezeshkian.

The budget outline was endorsed after the Planning and Budget Organization (PBO) presented a detailed report covering projected revenues, expenditures and key features of the 1405 budget, which will now be prepared for submission to parliament.

During the meeting, ministers also approved an executive bylaw related to Article 19 of the law on removing barriers to production, aimed at improving the business environment and supporting economic activity.

The cabinet further reviewed several previously adopted resolutions that had been flagged by parliament’s legal compliance body and introduced the necessary amendments to address those concerns.

In a separate briefing, the PBO head presented a report on the implementation of the fuel pricing reform scheme, citing what officials described as effective coordination and management in executing the plan.

President Pezeshkian thanked those involved in implementing the fuel pricing reform and stressed that revenues generated from the measure would be fully allocated to improving household living standards.

“The proceeds from the fuel price reform will be spent entirely, one hundred percent, on supporting people’s livelihoods,” Pezeshkian said, adding that no portion of the revenue should be diverted to other government expenditures.

Iran has been seeking to manage energy consumption and public finances amid budgetary pressures and economic constraints, while pledging that reforms affecting prices will be accompanied by measures to protect household incomes.

EF/MA