The Iranian parliament has passed the new state budget draft for next year after the government made amendments in it. The new year, 1405, in Iran will begin on March 21, 2026.

During the open session of the Iranian legislature, 171 MPs voted in favor of the new draft, 69 against, and 6 abstained.

The updated document envisages a gradual increase in civil servants' salaries up to 43% instead of a 20% increase.

The amendments concern the value-added tax, too: instead of 12%, a 10% rate was approved.

In addition, subsidies for the population in a number of priority sectors have been increased.

On December 30, the relevant committee of the Iranian parliament had not passed the budget draft previously submitted by the government, drawing attention to the fact that the document should give more space to the people, the market, and the production sector. On the same day, President Masoud Pezeshkian had sent a letter to parliament speaker Mohammad Bagher Ghalibaf, expressing the Iranian government's readiness to make the necessary amendments to the budget draft.