Budget Woes

The announcement that the Islamic Republic News Agency has a current budget deficit of 6 billion toman ($6 million USD) mirrors the problems surrounding the general expenditure budget. This has lead to a wave of new attacks on Ahmadinejad administration's handling of the general economy as of late. Next year's annual budget, for instance, is receiving criticism and raising questions such as the “bizarre and inaccurate” prediction of a 50 percent increase in the price of oil next year.

Majlis Speaker and Ahmadinejad-rival Ali Larijani has already gone on the offensive and attacked the proposed budget (which is widely expected to face major deficits) by making 15 specific objections and claiming that he has personally voiced his disapproval to Supreme Leader Khamenei.

It is significant to note that Islamic Republic's Management and Planning Organization was eliminated by Ahmadinejad in 2007, after he was elected to his first term. The office was fully responsible for preparing the country's annual budget and enjoyed a relative deal of autonomy from internal politics, comparable to the nonpartisan nature of the United States' Office of Management and Budget.

Ironically, conservatives similarly tried to abolish the office in 1981, only to be rebuffed by none other than then-Prime Minster Mir-Hossein Mousavi.
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Correction: This post originally attributed the $6 million deficit to the general expenditure, and not the IRNA.