On Wednesday, parliamentarians began debate on the national budget for Iranian calendar year 1385 (begins March 21, 2006) after a committee of legislators, mostly experts on economic issues, made some amendments to the first national budget bill presented by the government of President Mahmud Ahmadinejad.

The committee has reduced the government budget by about 10 percent to be more realistic, since oil prices may fluctuate, and in order to prevent higher inflation rates. However, some MPs have objected to the move, arguing that it would hinder realization of the president’s promises to increase the people’s purchasing power and stimulate the economy.

MP Mohammad Hassanvand, who was opposed to the national budget bill presented by the Ahmadinejad administration, said that it is not in line with the Fourth Five-Year Development Plan and the 20-Year Outlook Plan.

It could cause greater dependence on oil revenues, a rise in inflation, injustice, and an increase in liquidity and state economic monopolies, he said of the problems of the national budget bill.

“We are at a sensitive juncture, and we should decide on it after listening to the discussions of the experts,” he added.

The dependence on oil has increased by $12 billion compared to the previous year, he noted.

Majlis Energy Committee Deputy Chairman Mohsen Yahyavi, who favors the budget bill, said that funding for the development sector has been outlined in the bill, adding that unfinished development projects may never be completed if it is reduced.

“Today we have oil revenues that should not be left in the coffers because then we would not be able to respond to unemployment,” he observed.

MP Mohammad Mirtajoddin of the Majlis Conservative Faction said that subsidies are not granted fairly and that justice has not been observed in the proposed national budget.

The increase of fuel subsidies has been one of the main controversies of national budgets in recent years, which has still not been solved, he added.

Subsidies have not been properly focused, and the upper strata of society have been benefiting the most from this situation, which runs contrary to Article 48 of the Constitution, he said.

MP Ahmad Bolukian said the national budget bill will help the government achieve goals such as decentralization, poverty alleviation, and the enhancement of people’s purchasing power.

Meanwhile, parliamentarian Ali-Akbar Aqai said that insufficient funds have been allocated to the development sector, which could cause delays in development projects.

MP Salman Fahimi said that the Majlis budget committee’s proposal to reduce petrol imports by $1.5 billion is a very positive point.