Iran's hardline-led parliament rejects proposed Rouhani budget

DUBAI, Feb 2 (Reuters) - Iran's hardliner-dominated parliament on Tuesday rejected a draft state budget presented by pragmatist President Hassan Rouhani's government as factional tensions rise ahead of presidential elections next year.

The rejection came with a vote of 148 to 99 as hardliners, who already control parliament and the judiciary, appear poised to win the presidency in the June polls. Rouhani cannot run, having served two consecutive four-year terms.

In a session broadcast live on state radio, opponents of the budget, which had been amended by a parliament committee, said its heavy deficit and unrealistic oil income forecast would burden an economy already hit hard by U.S. sanctions.

The government is expected to submit a new draft budget within two weeks, and if the fiscal impasse is not resolved a temporary budget would have to be passed for one to three months, senior lawmakers told Iranian news agencies. (Reporting by Dubai newsroom; Editing by Alex Richardson and Giles Elgood)

Advertisement