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Iran’s parliament rejects Rouhani’s anti-subsidy budget

Iranian President Hassan Rouhani’s budget proposal, which sought subsidy reforms, was rejected by Iran’s parliament.
Iranian president Hassan Rouhani arrives for a news conference in Tehran, Iran, May 22, 2017. TIMA via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. - RC1CFEB6D770

When Iranian President Hassan Rouhani presented his administration’s budget proposal on Dec. 10, he gave a controversial speech on the parliament floor about corruption, which many observers believe played a contributing factor to the protests that rocked Iran. While Rouhani may have hoped the speech would garner public support for his economic plan after parliament rejected his general budget proposal for 2018-19, it seems that the speech may actually backfire, causing the president to retreat on economic reforms, particularly those targeting subsidies.

Of the lawmakers that were present, 120 voted against the budget bill and 83 voted in favor. A joint commission will revise the budget outline. Parliamentary Speaker Ali Larijani gave the commission 72 hours to introduce a revised budget.

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