Iranian President Masoud Pezeshkian defended his administration’s proposed 1404 (2025–26) budget in Parliament on Tuesday, emphasizing the need for fiscal discipline, smaller government, and science-driven policymaking to address Iran’s structural challenges, including inflation and water scarcity.

Why it matters:

Pezeshkian’s remarks represent a significant policy shift aimed at steering Iran’s fiscal and governance priorities toward sustainability and accountability.  Faced with inflation, budget deficits, and resource crises, the administration is signaling a departure from expansionary and politically driven governance.

The big picture:

The Pezeshkian Administration is navigating domestic and international challenges, including economic strain from inflation, water shortages, and demands for administrative reform. The President’s address reflects an effort to build parliamentary consensus for pragmatic, nonpartisan governance while enhancing regional cooperation.

What he is saying:

“A budget without a deficit means balanced development. We must grow proportionately — otherwise, every plan will end in deficit and inflation.”

“The government must be smaller. Without reducing expenses, we cannot control inflation.”
“We came to serve the people, not to act politically or along party lines.”

Key points:

  • Fiscal discipline: Pezeshkian called on lawmakers to support a balanced budget and resist unsustainable spending.
  • Government downsizing: He argued that an oversized bureaucracy is the root cause of budget deficits and inflation.
  • Public service focus: The President reaffirmed his commitment to serving all citizens rather than acting through partisan or factional agendas.
  • Social values: Pezeshkian highlighted a story of a mother from Kermanshah who donated her son’s blood money to build a school, framing it as a model of compassion and civic responsibility.
  • Water crisis: He announced collaboration with universities and researchers to design scientific, environmentally responsible solutions to Iran’s growing water scarcity.
  • Regional diplomacy: The administration has prioritized strengthening ties with neighboring states, signing cooperation agreements with Tajikistan, Russia, and Oman in sectors including water management, agriculture, science, culture, and trade. Pezeshkian also pledged to open a “new chapter” in relations with Persian Gulf countries.

Go deeper:
Pezeshkian: Government, Parliament, Judiciary Aligned to Ease Business Environment

 

M.Majdi - H.Jalalifar