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Rouhani’s first budget reflects realism, discipline

Iranian President Hassan Rouhani’s budget submission to the parliament implies hope for sanctions relief and private sector investment.
A storekeeper places money in the drawer of the cash register at his shop in Tehran May 4, 2008. With Western banks cutting ties with the Islamic Republic, it is becoming more and more difficult to transfer funds to the country of 70 million people. Tehran's increasing financial isolation is forcing some to bring in money by hand in thick wads of $100 bills on the plane from Dubai, the Gulf's financial centre, or elsewhere. REUTERS/Morteza Nikoubazl (IRAN) - RTX5GRN

President Hassan Rouhani presented the very first budget bill of his government to the Iranian Majles on Dec. 8. (Incidentally, after eight years of defiance and delays in budget debates caused by the Mahmoud Ahmadinejad administration, the new government managed to return to the normal process of presenting the budget bill.)

In this short piece, we will dissect the proposed bill. Evidently, over the next few weeks, the bill will be subject to parliamentary debates and amendments; however, one can detect the government’s preferred approach to key aspects of the country’s economy.

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