Iran’s government budget reveals tough road ahead as currency hits new low

Al JazeeraCenterEN 4 min read 100% complete by Maziar MotamediDecember 26, 2025 at 01:59 PM

AI Summary

long article 4 min

Iran's currency has reached record lows amid ongoing economic turmoil, reflected in the government's proposed budget for the upcoming Iranian year starting in late March. The budget nominally increased by 5%, but with inflation around 50%, it indicates reduced public spending. Minimum wages are set to increase by only 20%, guaranteeing decreased spending power for Iranians. Simultaneously, the government plans a 62% increase in taxes to reduce reliance on oil revenues due to US sanctions. The currency's decline is attributed to increased US sanctions, diplomatic pressure, and the threat of conflict with Israel. The proposed budget now awaits approval from parliament and the Guardian Council.

Key Entities & Roles

Key Player Opposition Context

Reuters 30% China 30% Guardian Council 40% Masoud Pezeshkian 50% Israel ×250% United States ×260% Tehran ×370% Iran ×690%

Keywords

iran economy 90% government budget 80% currency devaluation 80% inflation rate 70% economic turmoil 70% us sanctions 60% public spending 60% minimum wages 50% oil revenues 50% resistance economy 40%