Iran's Planning and Budget Organization is seeking to reduce the government budget’s direct dependence on oil revenues.

Budget deficits, foreign exchange reserve imbalances and extra liquidity were cited in a recent report by the organization as major factors damaging the Iranian economy over the years.

The US maximum pressure campaign on Iran’s economy has drastically reduced the country's foreign exchange earnings from oil sales. As a result, should budget structural reform continue to drag on, the budget deficit could force the government to encroach on banks' meager resources. This would gradually spike liquidity and ultimately lead to rampant inflation — a common phenomenon over the past 40 years. Lackluster economic forecasts appear to be blocking chances of meaningful economic growth for years to come, while external financing appears to remain remote under the current political circumstances. When banking system problems are added to this equation, there is practically no viable solution left other than budget reform to uproot long-standing, unsound budgeting methods.

The Planning and Budget Organization has divided the components of its proposed budget reform framework into four distinct sections. They consist of enhancing the institutionalization of the budget, increasing the efficiency of government spending, maintaining sustainable revenue generation and stabilizing sustainable economic growth at short- and medium-term horizons.