Review of the 2025 National Budget Bill (Part 11): Article 7 – Water, Agriculture, and Environment

Abstract
The government submitted the first part of the 2025 budget bill, which includes the single article, to the Islamic Consultative Assembly (Parliament) in early Aban (late October) of this year. The single article of this budget bill contains 17 clauses, of which Clause 7, titled “Water, Agriculture, and Environment,” comprises six sub-clauses. The sub-clauses related to the water sector (a, b, c, and d) mainly address the budget allocations for modern irrigation systems, collection of fees from water wells (usage rights), collective settlement of the difference between the mandated and actual cost prices of water with debts of completed projects as capital assets, and collecting amounts exceeding water tariffs from consumers to be allocated toward reducing water loss. The 2025 budget bill, similar to last year’s, includes limited provisions concerning the water sector and does not show a favorable alignment with the Seventh Development Plan. Some provisions of the Seventh Development Plan explicitly require alignment of annual budget laws, and furthermore, the implementation of some provisions depends on including the necessary funding in annual budget laws. Examples include equipping and organizing quantitative and qualitative water resource monitoring networks, launching a national water accounting system within the first two years of the plan, constructing desalination plants for coastal regions (at least 80%), purchasing guaranteed desalinated water, and installing meters on wells to ensure sustainable supply and control over-extraction. Despite the approval and promulgation of the Seventh Development Plan, the provisions included in the 2025 budget bill largely repeat the less significant provisions of previous years’ budget laws, and there is no proportional correspondence between the water-related content of the bill and the Seventh Development Plan. In the agricultural sector, important provisions of the Seventh Development Plan, such as implementing an optimized agricultural production system, gradually transferring price and non-price supports (technical, financial, and credit-related) to the end of the production chain (the producer), developing contract farming, increasing the capital of the Agricultural Bank, and implementing all-risk insurance for essential agricultural products, require clear policies to be incorporated in the budget bill’s clauses. This necessity should be considered in revising the bill. Regarding the environment and natural resources sectors, sub-clauses “th” and “j” in Clause 7 mark the first time in proposed annual budget bills that the Department of Environment is authorized to receive payments, goods, or services under any title from individuals or legal entities, as well as accept monetary and in-kind donations for domestic and international transactions. Furthermore, the bill legally authorizes the Department to implement public-private partnership projects aimed at environmental protection. Although the environmental and natural resources-related provisions are scattered across six clauses of the proposed budget bill, nearly 45% of these provisions have no precedent in past laws. Nevertheless, the influence of repetitive past provisions in the 2025 bill and the alignment of proposed provisions with the orientations of the Seventh Development Plan in the environment and natural resources sectors are points that require attention during the bill’s revision.
Subjects

[1] لایحه بودجه سال 1404 - بخش اول.
[2]  قانون بودجه سال 1400
[3]  قانون بودجه سال 1401
[4]  قانون بودجه سال 140۲
[5]  قانون بودجه سال 140۳
[6]  قانون برنامه پنجساله هفتم پیشرفت جمهوری اسلامی ایران (1403-1407).