Reports

Abstract Considering the challenges caused by concentration on financial and administrative powers in the Ministry, Educational System encounter routine matters and problems that have existed in all eras. They have made all ministers of Educational System to allocate major time to resolve these problems. On the other hand, the huge amount of budget for Educational System is spent on paying salaries, and there is no financial resource to improve the quality. Comparing to advanced Educational Systems in the world, there are some gaps including non-mandatory preschool, lack of a comprehensive database for informing about the status of schools, memory-based educational contents, lack of teacher retention in primary schools leading to reduce the quality of education in primary schools. Accordingly, in the current report beside a brief review on some of main challenges in Educational System, some political strategies aiming at improving public schools with a school-based approach have been presented. These suggestions cause Educational System to make content and structural changes to provide an infrastructure to accelerate the development of Educational System and to implement the document of Fundamental Evolution. Decentralization of the Ministry of Educational System through promoting provincial departments into organizations and then to delegate financial and administrative power to organizations. Some suggestions have been presented to make preschool mandatory with current facilities. Creating a comprehensive database of school, ranking schools and consequently amending educational calendar and delegating power to provinces, determining motivations for teachers retention in primary schools, and changing organizing human resources are the recommendations.

Abstract As a cultural product and one of strategic subcategory of creative industry stationery has integrated with individuals’ everyday life (especially children and teens). Despite considerable growth of stationery ecosystem during the last decade, overcoming opponents character-based products (mainly American products)……… . Despite concentration on cultural dimensions, the current documents and resolutions are limited to repetition of general policies in culture domain that do not present a specific strategy. Although in Executive resolutions emphasis is on facilitation and support domestic products, responsible institutions and organizations, lack the necessary interaction and executive and supervisory capacity. The main legislative and political challenges in this domain are as follows: the lack of a statistical system, flow of information and knowledge management, unexpected and inexpert decisions and policies, inadequacy of domestic character-based products, lack of formation of a stable chain of content in cultural merchandising, shortage of human resource instruction, non-purposeful financing and tax collection, ill-considered import restrictions, the problem of smuggling, export restrictions caused by intellectual property and foreign exchange. To organize the above-mentioned issues the following solutions are suggested: to create a statistical system and platforms for information and knowledge-enhancement review of interventionist policies (especially import prohibitions) adding stationery product to the list of cultural goods that are  subject to tax exemptions, organizing domestic regulations of intellectual property on copyright of foreign contents, facilitating the access to modern technologies in production, qualitative and quantitative improvement of vocational instruction and business skills and establishment of export management services.

Abstract The current report aimed at investigating the dedicated budget line to implement the law of “Youthful population and protection of the family”. 10/720 billion and 7/255 billion toman was allocated to implement this law in 2022 and 2023, respectively. It cannot be considered as a budget reduction because in 2023, increase in family benefit and child allowance in article (16) has been separated from this line and it was under the Note “12”. The process of funds allocations represents challenges such as lack of balanced distribution, not clear criteria for prioritize subjects to spend funds, lack of controllable indexes to measure expenditure, lack of detachment of administrative funds of Youthful population and protection of the family law and lack of a clear mechanism for provincial funds related to population. Investigating the way of enacting and allocating a dedicated line to Youthful population law in budget law in 2022 to 2024 indicate without referring to the share of executive organizations in the budget law a total amount has been enacted and decision on how to be distributed was made in National Headquarter of population that is in contrast to the process determined in Note “3” , Article “71” by legislator. On the other hand, due to not holding the meeting of National headquarter of population a dedicated line item has not been allocated to the National Headquarter of Population in budget law for 2024 showing the necessity for amending the way of approving funds and determining the administrative funds clearly in the budget law that leads to an increase in transparency and monitoring.

Abstract In the current report, the approval and realized funds in 2024 budget for domain of Religion, Islamic guidance, and endowment were investigated. Accordingly, the total amount of approved fund for religious organizations in 2024 was 318/987, acquisition of capital asset was 25/977 and the total was 344/964 billion rials. The highest expense credit and capital asset acquisition were 114/435 billion rials and 12/358 (billion rials for Seminaries (Hawza)) and Supreme Council of the Seminaries, respectively. The lowest expense credit and capital asset acquisition (it has not been zero) were 100 (billion rials) and 144 (million toman) for Usul Al Deen college and The World Forum for Proximity and University of Islamic Denominations, respectively. Based on the received reports from organizations in religion domain, without considering specific revenues (revenues in article “B”, Note “13”) in the first seven months of the year, about %50/5 of their funds have been realized. Based on these reports the allocated funds for capital asset acquisition and specific revenues for the above-mentioned organizations were zero. Not considering specific revenues, the highest and the lowest percentage of funds realization were %66 and %41 for the World Forum for Proximity and The Supreme Council of the Seminaries, respectively. The main problem is non-realization of Clause “B” in Note“13” of the budget law for 2024 (it is about allocation of %1 of expenses of state-owned enterprises, banks and for-profit institutions in religion domain) and spend a considerable amount of religious propagation organization budget for compensation for services for employees because of lack of proportional growth of organizations budget based on annual inflation. Accordingly, the performance guarantee for realization of Article “B” of Note “13” had not been successful.

Abstract The administrative system is a platform for development and function of economic, political, cultural, and social domains. This system can be considered as a regulator for all activities that consists of components such as human resources, regulations, structures and systems, processes, technology that constitute an integrated whole in geographical domain in Iran and other surrounding countries and systems in any mutual and organic relation. As every dynamic system, administrative system has a cause-and-effect relationship with the surrounding systems and the effect is mutual. In most adopted decisions in the government in different domains this significant issue has not received enough attention. Consequently, most reformed policies had been unsuccessful or had created problems for other domains. By presenting dynamics models explaining the cause-and-effect relations among phenomenon, this study aimed at pointing out this key point to policy makers and decision-makers that every decision in every domain especially in bureaucracy area as a dynamic and social phenomenon requires using appropriate tools to measure the amount and the evaluation of the effect of adopted policy on other areas. This can be fulfilled whenever calculating tools and programs are provided for measuring social and financial effects of effective variables on administrative system and all required information and statistics are made available for measuring the effect of policies for producers by all beneficiary executive organizations.

Abstract In the current report, approved and realized funds of the 2024 budget law for organizations in public culture, art, and creative industries during the first seven months of the year have been investigated. Accordingly, the total amount of expense funds for these organizations in 2024 budget was 87/173/286, capital asset acquisition was 11/918/150 and the total amount was 99/091/437 (million rials). The highest expense funds and capital asset acquisition were 42/026/021 and 14/209/153 for the Ministry of Culture and Islamic Guidance and Islamic Culture and Communication Organization, respectively. The lowest funds were 714/787 and 868/724 (million rial) for Sa’adi Foundation and Iranian Academy of the Arts, respectively. Generally without considering specific revenue of organizations, the percentage of funds realization in the mentioned sectors in the first seven months was only %37 of total allocated funds to public culture, art and creative industry sector. In other words, beside specific funds about %37 of expense fund (credit) and capital asset acquisition has been allocated to this sector. The highest and the lowest realization rate was %56/5 and %28/7 for Sa’adi Foundation and the Ministry of Culture and Islamic Guidance, respectively. About realization of Article (B), Note (13) of the budget bill (2024) ( that is on the allocation of %1 of state-owned enterprises, banks and profit-seeking organization expenses to culture sector) it should be noted that compared to last year, the amount of realization has increased slightly. Although most organizations have reported on low realization or non-realization.

Abstract However in previous years the judgments related to oil revenues and regulatory judgments (provisions) in oil and gas industry was mentioned in a provision and judgments related to subsidies targeting under a separate provision in the bill, all regulatory judgments in Oil and Gas Industry were included in Note “3”. Considering the current oil production rate the estimation of production target by 3750 barrels was a point of doubt. Consequently, realization of oil and gas condensate export is estimated as 1850 barrels per day, the government’s share is 1250 barrels per day that would be unexpected. Beside the condition of oil production, by investigating the predictions of oil market for the following year, there is a possibility of a reduction in the rate of Iran oil export. It is predicted that minimum and maximum scenarios and possible cost of export oil for the following year for Iran would be 53, 75, and 63 dollars per barrel, respectively and the export rate would be less than the considered volume in the budget bill. In the possible scenario, government’s revenue from oil export and gas condensate (63 dollar for each barrel based on the budget bill and export rate, 1/1 million barrel per day) is estimated to be 459 trillion dollar. In minimum and maximum scenarios it is estimated 370 and 696 trillion dollar, respectively. Investigating the regulations related to oil and gas industry in the budget bilk indicates a lack of sufficient attention to the Seventh Plan Law and necessary regulations for resolving imbalance in energy falling in the country.

Abstract The aim of this report is to examine the status of the budget allocation for Industry, Mine, and Communication sector in 2025. The results of this report indicate that industry sector has received minimal support in the budget bill and most necessities for growth of this sector have been neglected. Lack of attention to provide needed infrastructures for production sector, the limited tax support of production sector, lack of attention to prerequisites for desirable function of developing organizations are of some of these issues. The necessity to consider the program-centric approach of the budget bill for 2025 is another significant subject should be considered. Provisions (judgements) related to the production sector including reinforcing support funds, formation of a development program for business clusters and development of value chains in line with prior industries in Clause “T” , Article “48” of the Seventh Development Plan should be considered in the budget law for 2025. In the mining sector, the dominance of a revenue-focused perspective, the lack of a thorough analysis of the causes behind tragic accidents in coal mines, and the failure to address key issues raised in the Seventh Development Plan regarding the mining sector are among the weaknesses of the proposed bill. Regarding the communications sector, the first part of the government's proposed budget bill for the year 2025 (2025-2026) has significantly weakened the status and provisions of this sector compared to the 2024 budget and the Seventh Development Plan. The merger of the communications chapter with the industry and mining section, the removal of provisions related to cybersecurity and the digital economy, and the absence of new provisions aligned with the goals of the Seventh Development Plan are among the main weaknesses of the 2025 budget bill in the ICT sector.

Abstract Companies operating within an economic system may face bankruptcy or cessation of operations for various reasons. A review of the legal and legislative literature reveals that corporate bankruptcy is closely linked to the weakness of the company’s cash flow. Bankruptcy and the termination of company activities can occur through various methods, including liquidation (selling the company’s assets in parts) and selling the company as a whole (without asset separation), each of which carries its own advantages and costs. One of the common methods addressed in corporate bankruptcy systems is the “corporate restructuring system.” This system emphasizes ease and speed in resolving the claims of the company’s creditors. In fact, in restructuring, after the company is valued, the remaining value of the company is transferred to the creditors, and any surplus is allocated to the shareholders or partners of the company. However, in most cases, the company is not dissolved and can continue its operations. Efforts to resolve debt issues without dissolution and cessation of company activities have economic benefits. However, in Iran, the issue of bankruptcy is addressed in commercial laws dating back several decades, and the concept of corporate restructuring is fundamentally not recognized. Nevertheless, the legislator has provided certain facilities under the “reconciliation contract” in commercial law to allow a troubled company to continue its operations.This report aims to clarify the key components of the corporate restructuring system as implemented in some countries and proposes the establishment of such a legal framework in Iran.

Abstract In an efficient and effective democratic political system, citizens must have the opportunity to participate in decision-making and policymaking processes. Strengthening the role of people at the local level holds great importance, as it represents the first point of contact and communication between the government and the public. Undoubtedly, if people are allowed to participate in the policymaking and decision-making processes of local institutions, this will contribute to reinforcing democratic values such as trust, accountability, and responsibility, and can increase acceptance and support for decisions. One of the most important institutions established within the Islamic Republic of Iran to promote decentralization and public participation in managing affairs is the Islamic City and Village Councils, which are the most familiar institutions with local conditions and requirements. Designing institutional arrangements for public participation in the policymaking and decision-making processes of the Islamic Councils depends on accepting and adhering to rules and principles that have not been stipulated in the Law on the Formation, Duties, and Election of the Islamic Councils of the Country and the Election of Mayors. The present report, while presenting the principles and regulations of successful public participation at the local level, offers policy recommendations to create and strengthen public participation in local management.

Abstract According to the notification from the Planning and Budget Organization of the country, the total approved current and special expenses credits for the Ministry of Cultural Heritage, Tourism, and Handicrafts amount to 1,679.101 billion IRR, while the total approved public and special capital asset acquisition credits for this ministry amount to 2,236.438 billion IRR. Only about 43% of the total credits approved in the 2024 budget law for the Ministry have been notified so far. Moreover, only 13.26% of the total approved special credits for current expenses and capital asset acquisitions have been allocated. During the first seven months of 2024, on average, approximately 51% of the current expense credits and only 2.85% of the capital asset acquisition credits specified in the 2024 budget law have been realized. In fact, all the necessary current expense credits for the first seven months have been fully realized, but the lack of realization of capital asset acquisition credits—considering the governance responsibilities of this ministry—implies problems in advancing key projects and programs (such as the development of museum infrastructure). Furthermore, in the first seven months of this year, 20% of the performance related to the budget clauses relevant to this ministry is ambiguous due to the ministry’s failure to provide performance reports, and 80% of these clauses have no reported performance. Meanwhile, based on conducted assessments, nearly half of the budget clauses related to this ministry in the 2023 budget law showed no performance, about 17% had some performance, and nearly 33% were ambiguous.Therefore, the rate of realization of the approved credits in the 2024 budget law is in a worse condition compared to the previous year. A review of budget realization performance in 2023 and 2024 indicates that the credits allocated to this ministry merely cover current expenses.

Abstract The present report examines the approved and realized credits of the Ministry of Sports and Youth under the 2024 budget law. The review indicates that the total operational credits allocated to the Ministry of Sports and Youth amount to 6,875 billion tomans, and the total capital asset acquisition credits amount to 5,018 billion tomans. During the first seven months of the year 2024, on average, only about 42% of the operational credits and approximately 10% of the capital asset acquisition credits of the Ministry have been realized. Moreover, to date, no credits have been allocated for clause “B” of Note 13, which has total assigned credits of 1,995 billion toman, nor for the funds related to tobacco consumption, prevention and treatment of related diseases, and the development of sports facilities sourced from cigarette taxes and duties, which have total assigned credits of 119 billion toman. The examination of the budget notes for the year 2024 shows that only 50% of the notes have any performance. Therefore, it can be stated that half of the budget notes for the Ministry of Sports and Youth in 2024 lack performance. The primary reasons for this situation can be attributed to the absence of a specific share of credits allocated to the sports sector and the high number of areas receiving credits from the budget provisions, which has resulted in the non-allocation of sports credits. It Is worth mentioning that the realization of operational and capital asset acquisition credits for the Ministry of Sports and Youth in the first seven months of 2024 has improved by approximately 5% compared to the performance of the nine-month period in the 2023 budget law.

Abstract Persistent and institutionalized challenges in Iran’s labor market highlight the necessity of paying attention to the quality of employment alongside increasing its quantity. In this context, World Bank studies indicate that to achieve this goal, a clear framework for policymaking in the labor market must be designed. Active labor market policies constitute a main pillar of this framework. Although active programs are commonly shared among countries—such as job creation, job retention, job search assistance, human capital development, and improving labor market matching—the expenditures, composition, and diversity of these programs vary in each country depending on its challenges and infrastructure.Evidence from evaluations of the implementation of these policies in many countries shows that for better execution, it is first necessary to identify target groups and recognize the challenges they face. Furthermore, attention must be given to cost-effectiveness, continuity and sequencing of programs, substitutability among programs, flexibility and feasibility during economic crises, collaboration and consultation with social groups (such as labor unions and the private sector), and the establishment of technical and financial infrastructures. However, a pathology analysis of the overall approach to implementing active labor market policies in Iran reveals that, in addition to the fact that such policies have not been a priority within government economic policies—leading to a lack of budget allocation—another weakness is the absence of supporting documents and comprehensive scientific evidence in identifying target groups and their challenges. Moreover, there has been insufficient attention to collective participation and stakeholder opinions, lack of planned flexibility in programs, lack of foresight regarding the necessary infrastructure for implementation, and absence of a monitoring and evaluation structure for the programs. Accordingly, it is proposed that the implementation of active labor market policies be carried out as a combined package alongside other government economic policies, with a specific annual share of feasible funding and financial resources allocated for their execution.

Abstract Marine ecosystems are highly vulnerable to pollution resulting from human activities. Recently, an increasing number of emerging pollutants, such as nano-plastics and micro-plastics, have reached the pristine environments of the Arctic and Antarctic regions. For many years, the oceans have been targeted as dumping grounds for industrial wastes, chemicals (including chemical weapons), sewage, sludge, and other residues generated on land.The rising pollution load in the marine environment, along with the insufficiency of the oceans’ natural self-purification capacity to prevent problems arising from waste disposal in marine environments, has made the implementation of stricter regulations on the discharge and dumping of wastes and other materials in marine environments undeniable.A review of upstream policy documents in this field, such as Clause 5 of the Sea-Oriented Development Policies, Article 20 of the Soil Protection Act, and Clause 2 of Subsection “Ch” of Article 22 of the Seventh Five-Year Development Plan, highlights the importance of preventing marine environmental pollution and recovering materials and energy from sewage sludge wastes. Accordingly, the bill to amend Annexes 1 and 2 of the 1996 Protocol (1375) to the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, regarding the removal of “sewage sludge” from the list of eight categories of wastes permitted to be dumped at sea (after obtaining national authority permits), which was approved by the parties at the 17^th Meeting of the Contracting Parties to the London Protocol on October 7, 2022 , is acceptable and endorsed.

Abstract Article (31) of the Law on the Addition of Certain Provisions to the Law on Regulating Part of the Financial Regulations of the Government (2), despite its many advantages, has made it practically impossible to implement some of the “supportive” payments by the Ministry of Cooperatives, Labor, and Social Welfare under clauses “C” and “D” of Article (9) of the Law on the Implementation of the General Policies of Principle (44) of the Constitution. These supports are conditional upon the auditing of small-scale, low-income cooperatives associated with the lower income deciles of society. Since the cost of official auditing in the country is much higher than the aforementioned payments, the proposed draft, in the form of adding a note to clause “B” of Article (31) of the law, seeks to accept auditing by the cooperatives’ own auditors under the supervision of the Ministry of Cooperatives, Labor, and Social Welfare — provided that the cooperatives are not subject to Article (272) of the amended Direct Taxation Law of 2015 and that the assistance they receive does not exceed the threshold of small transactions. This draft aligns with the primary objectives of the law and significantly helps cooperatives related to low-income groups, women, the disabled, and cooperatives associated with the three lowest income deciles in overcoming the high costs of auditing. It provides a valuable opportunity for their survival and continued operation. Additionally, it assists the Ministry of Cooperatives, Labor, and Social Welfare in fulfilling its mandated duties under clauses “C” and “D” of Article (9) of the Executive Policies of Principle (44) of the Constitution. For these reasons, the draft is evaluated positively, and its approval with the addition of certain phrases at the final paragraph is recommended.

Abstract Representative democracy has always faced challenges such as limiting people’s role to voting only once every four years, weakening trust in political parties and groups, the empowerment of society and demands for accountability from officials, and an increasing desire for greater involvement in policymaking and decision-making. Therefore, besides voting, people seek to express their opinions on policy matters. Undoubtedly, reducing the role of people To merely voting leads to the formation of minimal and fragile democracy. Hence, various countries at different levels of governance strive to engage citizens in policymaking and decision-making processes. Local governance, with meaningful and strong participation of citizens, forms the first and most fundamental link in democracy. Establishing successful mechanisms at this level can lead to the adoption of these institutional arrangements effectively at the national level. The present report describes and reviews representative, participatory, and consultative democracy, and while emphasizing the importance of participatory democracy at the local level, it addresses participation models at the local level and ways to evaluate the process, and provides recommendations for applying participatory models locally.

Abstract Strengthening governance is a fundamental prerequisite for national transformation and mechanisms to resolve the country’s Issues. In the report titled “Charter of Co-Creation of the Future Image of Iran”, this point serves as the foundation, followed by the presentation of several future images of Iran, one of which is the “Resilient Iran.” Due to its unique political, geographical, economic, and socio-cultural conditions within the international ecosystem, the future vision for Iran must embody resilience, stability, and robustness. It must possess the necessary resistance against disruptive events, unforeseen incidents, and pressures from adversaries.This report, after reviewing the concepts of resilience and national resilience, examines the various types of resilience across different sectors and levels of the country, including economy, infrastructure, society, and more. It also outlines the characteristics of resilient governance. Furthermore, it analyzes the experiences of other countries in the field of resilience. These experiences illustrate the path toward building resilience in governance and the priorities for resilience-building tailored to the specific conditions of a country. Subsequently, the models and strategies of resilient governance and the key actors in this arena, as reflected in the research literature on this concept, are explored. The report finally refers to the current characteristics of Iran. Given Iran’s status in various resilience indices, a comprehensive overview of the present situation and a future image of a more resilient Iran are portrayed. In this way, the key factors influencing the image of a resilient Iran are identified, helping to clarify the gap between the current situation and the desired state. By understanding the desired state, appropriate strategies for achieving a stable Iran in political, economic, and social domains are proposed.

Abstract The contemporary perspective on global governance—as a mechanism aimed at addressing challenges that transcend national borders and require collective solutions—is increasingly influenced not only by binding legal instruments (hard law) but also by non-binding legal instruments, known as soft law.Soft law refers to norms, principles, and practices that, although lacking the binding force of hard law, nonetheless exert considerable influence on the behavior of key global governance actors—namely states on one hand, and non-state actors on the other. This influence extends across various domains such as the economy, monetary and financial systems, the environment, human rights, and technology. Accordingly, engaging with the concept of soft law is essential to understanding its pervasive impact on global governance. This report, using a descriptive-analytical method and based on library resources, explores the functions of soft law within global governance. It illustrates how soft law facilitates international cooperation, influences policymaking, and shapes the behavior of global actors. Moreover, the report highlights the role of soft law in the gradual development of hard law instruments, its adaptability in responding to global challenges, and its contribution to the stability of international relations. The findings of this study indicate that, while soft law lacks the binding force of hard law, it nonetheless plays a significant role in structuring global governance.

Abstract One of the key aspects in designing a tax system based on aggregate income is determining the method for calculating taxpayers’ income. The calculation and collection of tax from various tax bases can be done through different methods. Generally, income bases can be divided into two categories: income derived from labor and income derived from capital. Income from labor includes business income, salaries and wages, as well as cash and non-cash employment benefits. Business income, due to its dual nature—partly derived from capital and partly from labor—requires special consideration; similarly, salaries and both cash and non-cash benefits have their own specific considerations. Each should be taxed according to its particular circumstances in a way that ensures both horizontal and vertical tax equity and prevents tax evasion. Regarding the calculation and collection of tax on income derived from capital, there are also important considerations. One significant type of such income is capital gains. Other types of capital income include rental income from properties, as well as dividends from stocks and sukuk (Islamic bonds), each of which has its own particular methods and can be taxed in various ways. Nowadays, countries strive to adopt withholding tax methods to reduce compliance costs for taxpayers and simultaneously prevent tax evasion. Therefore, in most countries, income bases such as these are taxed at the source.

Abstract Given that housing and its financing constitute a current necessity for the country’s economic system—and considering the priority of investment in deteriorated urban areas—the “Executive Guidelines for the Establishment, Operation, and Supervision of Housing Savings and Loan Institutions” were initially approved by the Money and Credit Council in 2016. The revised version of these guidelines (the present text) was subsequently ratified in the extraordinary session dated August 1, 2024, by the High Council of the Central Bank, which recently replaced the Money and Credit Council in accordance with the new Central Bank Law of the Islamic Republic of Iran.The objective of these institutions is to contribute to housing finance and the revitalization of deteriorated urban areas in specific geographic regions, through the mobilization of small-scale savings and the provision of housing loans in those areas.In general, although the activities defined for these institutions are aligned with their intended function, it is recommended that the scope and boundaries of these activities be more precisely delineated.

Abstract The obligation to repatriate foreign currency earnings and sell them in the official foreign exchange market has, in recent years, become one of the major challenges for non-oil exports. When there is a significant disparity between the free market and official exchange rates, exporters- particularly small-scale exporters such as those providing technical and engineering services, knowledge-based and creative industrial products, horticultural and agricultural goods, and handicrafts- are generally reluctant to repatriate their earnings through official channels. Moreover, determining the exact amount of foreign exchange obligations for exporters is not straightforward. In cases where self-declaration is the basis, exporters naturally tend to declare the lowest possible value for their goods (to avoid selling all their foreign currency earnings at a rate below the market price). On the other hand, in non-self-declaratory scenarios, it is virtually impossible to accurately determine the value of exported goods. As a result, the current valuation of exported goods in certain tariff codes significantly deviates from reality, leading to an underreporting of approximately 4 billion USD in non-oil exports. This issue has also been addressed in Paragraph (p) of Article 4 of the Seventh Development Plan Law, which obliges the Central Bank to reform its foreign exchange policies and infrastructure in a way that prevents over-invoicing of imports and under-invoicing of exports. Undervaluation of exports has several consequences, including reduced foreign currency supply in the official market, denial of tax exemptions for exporters, and distortion of national export statistics. Therefore, it is recommended that incentive mechanisms be developed to encourage accurate pricing declarations, and that self-declaration be maintained as the operational standard.

Abstract Injuries caused by road accidents, including deaths and injuries to the victims, result in irreparable human, social, and economic damages worldwide and in Iran. According to existing statistics, low- and middle-income countries, despite possessing 60% of the world’s vehicles, account for approximately 93% of all road traffic deaths. According to the latest statistics in Iran, in the year 2023 (2023-2024), 20,045 people lost their lives in traffic accidents across the country. For this reason, in this report, a cost-benefit analysis has been used to evaluate the increase in safety of domestically produced vehicles by comparing the costs required to improve the safety of locally manufactured vehicles against the economic and social benefits gained from reducing deaths and injuries in accidents. The results of this analysis show that improving the safety of domestically produced vehicles is economically justifiable. By changing the platform of current vehicles produced in the country and utilizing modern safety improvement technologies, the number of injured and deceased passengers and drivers in road accidents can be reduced by approximately 50%. This amount corresponds to about 30% of all casualties and injuries related to road accidents. It is noteworthy that changing the platform of vehicles currently in circulation is a long-term program, and this issue should be pursued as a complement alongside short-term, high-impact measures such as speed control. Consequently, given the significant social benefits in reducing road accident mortality and injuries, planning and moving in this direction can be considered one of the important priorities for the country and the automotive industry.

Abstract Given the importance of investment in expanding productive capacities- particularly in the industry and mining sectors- this report analyzes the structure and composition of investment in Iran’s industrial sector and the factors influencing it. An examination of the trends in gross fixed capital formation and its growth at the macroeconomic level in Iran indicates that investment levels have followed a downward trajectory since 2018, with highly volatile growth throughout the 2010s. A review of the distribution of investment across industrial sub-sectors reveals a markedly uneven allocation. More than half of the investments in Iran’s industrial sector have been concentrated in three industries: chemical and chemical product manufacturing, basic metals production, and coke and refined petroleum products manufacturing. These are predominantly large-scale, capital- and energy-intensive industries that rely heavily on mineral resources.

Abstract The ability to accurately measure inflation expectations is an integral part of central banks’ policies. In fact, given the current monetary policy approach based on inflation targeting, central banks must be forward-looking and adjust their policies based on forecasts of future inflation rates. This approach requires access to reliable and continuous data on people’s inflation expectations. However, collecting such information is challenging, because inflation expectations cannot be measured directly in the same way as variables like interest rates, unemployment rates, consumer and producer prices, etc. Consequently, it can be said that measuring inflation expectations is a major challenge for economists and policymakers. There are various methods to estimate inflation expectations, the most important of which is measuring them by directly asking people about their price expectations. These questions may be presented quantitatively or qualitatively. Depending on whether the survey questions are quantitative or qualitative, different methods are used to calculate inflation expectations based on surveys, which are generally divided into two categories: methods based on quantitative surveys and methods based on qualitative surveys. Given the importance and extensive application of the inflation expectations index based on surveys, the Research Center of the Islamic Consultative Assembly (Parliament) has started conducting economic indicator opinion polls since autumn 2021 to calculate this index in Iran. The relevant concepts and various measurement methods of the inflation expectations index based on qualitative and quantitative surveys are discussed in detail in the present report.

Abstract Having a timely and reliable picture of the country’s GDP developments can effectively help improve policymaking and more accurately monitor the macro economy. Given the delays in official statistical sources in this area and the repeated requests from the members of the Islamic Consultative Assembly to address this shortcoming and provide a more timely picture of economic growth, the Research Center of the Parliament has made efforts to establish a computational infrastructure to estimate and present the country’s economic growth on a monthly basis and as quickly as possible. According to the latest data from the Central Bank for spring 2024, the country’s GDP, compared to the same season last year, has grown by 3.2% including oil, and 2.5% excluding oil. According to the Research Center’s calculations, the country’s economic growth in September 2024 compared to the same month last year is estimated at 1.9%, and growth excluding oil is estimated at 1.6%. The results of this Center’s estimates show that in September 2024, compared to the same month last year, the value added of the “Agriculture” sector grew by 2.5%, the “Crude Oil and Natural Gas” sector by 5%, the “Industry and Mining” group recorded a negative growth of 0.2%, and the “Services” group grew by 1.9%. Considering the results of July, August, and September, in summer 2024 compared to the same season last year, the country’s economic growth is estimated at 2.4%, and non-oil economic growth is estimated at 2%. The value added of the “Agriculture” sector grew by 2.7%, the “Crude Oil and Natural Gas” sector by 6.5%, the “Industry and Mining” group showed a negative growth of 0.2%, and the “Services” group recorded a growth of 2.7%.

Abstract Addressing poverty and making systematic efforts to reduce and eliminate it in the country requires a structured national-level plan. In this regard, the most important overarching program document is the Five-Year Economic, Social, and Cultural Development Plans of the Islamic Republic of Iran, which guide the country’s development path, serve as the legal basis for allocating resources and facilities to different regions and social groups, and constitute the foundation for the performance of management bodies. Therefore, this report examines the first to fourth development plans after the revolution from the perspective of poverty alleviation. The research method employed was library-based or conducted through thematic content analysis. In these four plans, the approach to poverty alleviation was as follows: the first two plans regarded poverty alleviation as a fundamental policy, while in the third and fourth plans, it became more marginal. Moreover, the first and second plans had professional shortcomings, especially the first plan, which ambitiously and unrealistically aimed to bring deprived areas to the level of non-deprived areas within a single five-year period at the beginning of the plan. This issue is explained in the following text.

Abstract Kazakhstan’s economy has a positive correlation with the oil and gas industry. Since the beginning of the year 2000, except during certain periods such as the global financial crisis in 2007 and the COVID-19 pandemic in 2020, Kazakhstan’s gross domestic product (GDP) growth and its economic ranking have generally improved. However, the trade openness index and the volume of incoming investments have decreased. It appears that Kazakhstan is seeking to develop investments and improve other economic indicators by leveraging regional cooperation policies and benefiting from special economic zones. The Republic of Kazakhstan has 13 special economic zones established to promote advanced, high-yield, and competitive production, attract investments, access modern technologies in the economy, and increase employment. The most important features of these zones include: defining priority activities, providing targeted exemptions, setting timelines and conditions for dissolving the zones in case of failure to meet indicators or upon the expiry of the designated period, restricting company registration outside the special economic zone for those benefiting from its exemptions, and limiting the size and location of most zones to areas outside residential regions.

Abstract The launch of the National Data Portal project (data.gov.ir) can be considered the most significant initiative undertaken at the national level in the field of open government data. The objective of this portal is to create and maintain metadata and integrated open data sets from relevant agencies and make them accessible to the general public. However, the prevailing system-centric approach has hindered the full realization of this goal as well as the expected social, economic, and political benefits. In practice, the success of such a project requires not only a technical perspective but also the development of open data both on the supply and demand sides, the engagement of stakeholders, and the enhancement of necessary institutions and infrastructures. In this regard, this report employs an open government data ecosystem approach to provide a comprehensive view of the various dimensions involved in the development of the country’s national data portal and to identify the shortcomings of the current situation. Alongside the use of previous documents and research, interviews were conducted with experts in this field — including former and current officials responsible for the development of the national data portal, potential users, and researchers specializing in data governance. Ultimately, recommendations aimed at improving the conditions were presented. Among these recommendations are the need to stabilize the position of the system’s steward, enhance the quality of interventions, develop data stewardship, and make better and greater use of social tools.

Abstract Given the country’s goal to rank among the top 10 nations globally in the field of artificial intelligence, planning for the development, regulation, and application of this technology has accelerated. Among the tools for evaluating the extent of AI development and regulation is the identification of related indicators and determining the country’s position at the global level. One such indicator is the AI Readiness Index by the Oxford Insights Institute, which annually ranks countries. In 2023, the United States, Singapore, and the United Kingdom held the first to third positions respectively, while China ranked 16^th. Iran was ranked 94^th out of 193 countries in the mentioned year. Although our country is among the top 20 globally in publishing research articles in this field, it has not achieved a favorable score or position across all three pillars of this index, which include government, technology and data sector, and infrastructure. The weakest score relates to the government pillar and the responsibilities assigned to the government. Therefore, agility and dynamism in the governance structure of artificial intelligence in Iran, aimed at the rapid formulation and approval of transparent and actionable programs and commitment to their implementation during this critical period, is highly essential. Alongside this, other measures such as the continuous development of communication and information infrastructure and online services, attention to investment and international partnerships through web development platforms, as well as consideration of ethical and social aspects of AI, can effectively contribute to improving the country’s international standing.

Abstract Property tax is one of the important tax bases used in various countries. Besides its high revenue-generating capacity and consequent impact on inflation, it can also improve tax justice and the distribution of tax burden across different income deciles in a country. Governments around the world implement various policies, adapted to their economic conditions, to control the frequent price increases in the housing market and other non-productive markets. The absence of effective government presence in the land and housing market leads to inefficient resource allocation, increased speculative demand, creation of price bubbles in land and housing, multiple shocks in the housing sector, and ultimately results in reduced housing affordability for households and increased housing costs in household budgets. Property tax is an option that can be used as an appropriate solution to achieve the above-mentioned goals. This tax base has, over recent decades, been recognized as one of the most important pillars of tax systems in many countries worldwide. Tax tools in this sector, in addition to generating revenue for the government, can—if properly designed—contribute to market stability and reduce speculative activities. Accordingly, the annual tax on real estate, as a regulatory tool, in addition to guiding existing land resources toward optimal use and increasing housing supply, can play a significant role in controlling speculation in the land and housing sector and assist national and local governments in securing sustainable revenue to provide public welfare goods and services and to allocate resources efficiently.

Abstract The uncontrolled growth of urban populations and the acceleration of urban industrialization have compelled development authorities to seek solutions to address the current and future problems of large cities. One such solution is the policy of new towns, which proposes the establishment of settlements with diverse and independent functions outside the influence areas of main cities. At the international level, since the 1960s and with the increasing complexity of urban issues—especially the housing problem for the middle and lower classes—the idea of creating new towns attracted the attention of policymakers and urban planners. Similarly, in Iran, particularly from the 1980s onward and amid intensifying population crises, the development of new towns became one of the main urban management policies. The manner of implementing this policy has been widely debated among economists, sociologists, architects, and urban planners. However, despite several decades since the inception of this policy, the question remains: can these measures effectively meet their intended objectives? Might these towns lose their functionality and create new problems? To answer these questions, it is necessary to examine the factors behind the successes and failures of both domestic and international examples. Accordingly, the present report aims to identify the issues and challenges in the planning and implementation processes and the reasons behind the failure of some new towns in global cases. Each of these examples was founded with a specific goal, but their development did not follow the planned path and ultimately resulted in failure.

Abstract Enhancing livability, improving the quality of life of residents, and creating vibrancy are among the most important concerns of urban planners and managers. One of the key factors in creating vibrancy is the mixing of land uses—meaning the multifunctional use of land and buildings. This approach, if not properly planned and controlled, can lead to multiple levels of conflict and tension between residents on one side, and business owners and visitors on the other, ranging from the building scale to the neighborhood level, ultimately resulting in social decline at the urban scale. Among the most important laws that provide this framework in Iran are the note under clause 24 of Article 55 of the Municipality Law (amended on 17/05/1352 [Solar Hijri calendar]) and the single article of the Law on Medical Clinics (approved on 20/10/1366). These laws permit the establishment of various activities without any restrictions within residential land uses. Of course, attention to the context in which these laws were defined, and the opportunities they particularly created for healthcare services, has been important and in some cases successful in fostering mixed-use developments and enlivening the urban environment. However, evidence and experiences—especially in large metropolitan areas—show that social and cultural tensions, as well as traffic congestion, have in some cases doubled. Studies indicate that to improve the current situation, two approaches can be pursued: fundamental reform and partial reform. Fundamental reform seeks to change the method of urban land use management by valuing certain benefits of the current situation, while partial reform accepts the current conditions and utilizes urban management tools such as levies to control the functions of buildings.

Abstract The capital market Is one of the most important economic markets in any country. Due to the widespread presence of investors in this market, the governance of the market has always been a focus for legislators, who have aimed for this market to achieve efficiency, fairness, transparency, and ease in financing. By governance of the capital market, we mean the set of rules, regulations, decisions, and actions that are taken with the goal of achieving the functions of the capital market. The legislator in Iran has also been aware of the need for proper governance in the country’s capital market and has addressed this in various provisions of the Securities Market Act of the Islamic Republic of Iran, passed in 2005 (which is the most important law governing the capital market). However, governance of the capital market, which is mainly carried out by the High Council of the Stock Exchange and the Securities and Exchange Organization, faces several challenges. This report focuses on governance by the High Council of the Stock Exchange and highlights challenges such as structural factors that create conflicts of interest within the council, government intervention in the council (including rights and roles of the government), issues related to the composition of the council’s members, weakness in utilizing specialized and expert capacities during council meetings, the council’s involvement in executive duties, and certain legal gaps. Finally, to address these challenges and improve governance in the capital market, the report proposes legal reforms with emphasis on: 1. Strengthening the council’s supervisory and expert dimensions, 2. Managing conflicts of interest within the council,3. Delegating the council’s executive duties to the Securities and Exchange Organization and granting sufficient authority to the organization while increasing its accountability to the council, and 4. Increasing transparency within both the council and the organization.

Abstract Having an accurate and timely picture of the macroeconomic variables is one of the primary prerequisites for economic policymaking. This matter holds even greater significance for the Islamic Consultative Assembly (Parliament) as it prepares to review the 2025 (2025-2026) budget bill. An examination of the country’s economic status and its outlook indicates that with the reduction of the economy’s idle capacities, economic growth will continue at lower levels; accordingly, the country’s economic growth is forecasted to be 2.5% in 2024 (2024-2025) and 2.8% in 2025 (2025-2026). These figures are below the target growth set by the Seventh Development Plan (an average of 8%) and the economic growth achieved in the past four years (an average of 4.2%). Furthermore, the downward trend of inflation in recent quarters and the overall inflation rate reaching 35% as announced by the statistical Center in September 2024 (September 2024) is expected to continue, assuming stable conditions. It is worth noting, however, that budgetary and banking sector imbalances continue to worsen, and energy sector imbalances remain a serious challenge. The share of oil exports in total exports has shown an upward trend. All these factors pose risks to achieving the growth and inflation targets outlined in the Seventh Development Plan. Therefore, a reform in policymaking approaches must be seriously considered by policymakers. The fragile inflation expectations and limited social capital will cause reform policies with high social costs to face constraints. Under such circumstances, a strategy of gradual reforms, although it may not achieve all objectives, can still address part of the issue. Moreover, reform measures such as designing international initiatives aimed at creating mutual benefits to attract foreign investments, prioritizing investments based on the highest value creation capacity, and advancing reforms to address inefficiencies in the banking and budgetary systems of the country must be seriously placed on the agenda. Alongside this, gradual adjustments in stabilized prices can at least prevent the worsening of economic imbalances and the intensification of the economy’s deficits.

Abstract The presence of mice as one of the pest rodents causes significant economic damage and poses risks to human health and public hygiene. Examining the current status of the country in terms of legislation and integrated comprehensive management of pest rodents, as well as evaluating public opinion regarding the performance of responsible authorities and comparing it with the approaches implemented in international examples, can provide a foundation for addressing existing deficiencies in future planning efforts in the country. In this report, by consulting with the relevant authorities regarding the damages caused by the proliferation of pest rodents in the country, the opinions and awareness levels of the public concerning the management of these animals have been evaluated through the preparation and distribution of questionnaires. Additionally, an operational case study from one of the country’s major cities has been examined. Ultimately, by reviewing international examples and the challenges faced by responsible agencies, the operational and legislative shortcomings in the management of pest rodents in the country have been identified. The results of the present study indicate that almost throughout the country, there is an increase in at least one species of mouse, and consequently, an increased likelihood of contracting zoonotic diseases (diseases transmitted between humans and animals). Moreover, the evaluation of public awareness and opinion reveals a generally low level of knowledge and satisfaction with the management of the rodent invasion problem in the country. This report proposes solutions in legislative areas such as revising the guidelines for controlling rodent populations in urban environments, identifying existing legal gaps in the path of integrated pest rodent management by responsible agencies, and drafting a proposed bill by executive bodies. These solutions include improving and upgrading methods of regular waste collection and increasing the coverage and connection to the sewage system.

Abstract This report examines the implementation of budget provisions and line items related to the higher education and research sector in the 2024 Budget Law. It also highlights the major issues faced by universities and other public educational and research institutions, particularly in areas concerning the budgets of student welfare funds under the Ministries of Science and Health. These include insufficient funding for student meals, inadequate resources and limited coverage for providing student loans, and issues arising from reduced revenues and financial inefficiencies affecting the performance of the funds. Further challenges include legal and procedural complications regarding property and land swaps involving universities, as well as efforts to engage the private sector in the construction of necessary buildings. Additionally, other issues such as retirement benefit payments for university faculty and the lack of access to funds under the “Balanced Utilization of National Resources” law were also examined. Findings indicate that in the first half of 2024, the allocation of public funds to the universities under review was generally satisfactory. However, with respect to specific provisions, it is noted that the student welfare funds of the two ministries have not benefited significantly from student tuition loan repayments, as the repayment period has ended. Moreover, reduced revenues and resource inefficiencies have posed serious challenges to the fulfillment of the funds’ mandates. In line with Paragraph “A” of Note “12” of the 2024 Budget Law, investigations reveal that 95 properties and land parcels owned by universities have so far been Identified for swap and development projects—such as the construction of buildings and dormitories on main campuses—and have received approval from the Supreme Council for the Optimization of State-Owned Assets. However, certain legal and regulatory issues may hinder the implementation of this provision. Should these issues be resolved, this measure could have a significant positive impact on universities.

Abstract In October 2024, the production and sales index of listed industrial companies experienced a year-on-year increase of 1.2% and 8.6%, respectively. Compared to the previous month, the production and sales index also rose by 10% and 9.9%, respectively. In October 2024, the production and sales indices of the automotive and parts sector increased by 12% and 9.1% compared to the same month in the previous year. Additionally, compared to the previous month, the production and sales indices grew by 26.5% and 28.5%, respectively. Furthermore, the production index in the chemical activities sector (excluding pharmaceuticals) decreased by 2.1% compared to the same month of the previous year, while the sales index increased by 7.5%. Compared to the previous month, the production and sales indices in this sector rose by 2.8% and 5.2%, respectively. In October 2024, the monthly growth rate of prices in the listed industrial activities increased by 1.1%. The year-on-year (point-to-point) growth rate, however, decreased by 2.3 percentage points compared to the previous month, reaching 19.9%. It is worth noting that the annual average price index of listed industrial activities in October 2024 decreased by 0.5 percentage points compared to the previous month, while showing an overall increase of 24.1%.

Abstract It has been about a decade since the enactment of the Family Protection Act (2012) and its executive regulations (2014). In the note to Article 41 of the Family Protection Act, the establishment of centers for parental visitation with their children is emphasized. In practice, the Mehr Family Centers have been established as a mechanism to fulfill the objective stated in the aforementioned article. One of the important goals of these centers is to facilitate reconciliation in the post-divorce stages, provide a safe environment for parental visitation with the child, and prevent and reduce the harms arising from divorce. Based on this, the aim of the present report is to evaluate the status and performance of these centers. Evaluations of the measures taken indicate that, over the past years, 205 centers have been established nationwide. These centers have succeeded in creating a safe environment along with some social work and counseling services, and a separate space for the children of divorced parents to play with their parents. The main social work and counseling services of these centers include mediation and facilitation regarding visitation with children, education, and supervision of the custody process in order to reduce the harms caused by divorce for both parents and children. Evaluations show that the programs of these centers, designed to provide a safe place for parental visitation with children and reduce the harms of divorce, are innovative and effective ideas; so much so that if appropriate conditions are provided, they could become a milestone in governing social harms, as they focus on at-risk groups. Nevertheless, currently, these centers face significant challenges that affect their performance.

Abstract According to clause “T” of Article (59) of the Seventh Progress Plan Law, the Supreme Council for Coordination of Transportation and Safety in the country must approve the “Operational Program for Enhancing Road Safety” within a maximum of six months after the enforcement of the plan, with the goal of reducing annual fatalities caused by traffic accidents by 10%. Studies indicate that despite the preparation of an extensive set of reports related to safety improvements between 2015 and 2019, a cohesive summary of these reports in the form of an “operational program document that can be followed up by the leading safety body (the Supreme Council for Coordination of Transportation and Safety)” has not been provided. The main deficiencies of the aforementioned program include a lack of coherence (creating a systemic link between actions and relevant indicators), absence of quantitative targets, and no framework for monitoring the actions. To make the operational program practical and enable its follow-up and management by the Supreme Council for Coordination of Transportation and Safety, it is suggested, based on previous study findings, that: The number of actions in the operational program be reduced, and a table including a maximum of 30 priority actions based on the five pillars of transportation safety be prepared and introduced as the “Operational Program for Enhancing Road Safety in the Country.” This table should include columns for “Action Title,” “Responsible Agency,” “Output Indicator(s) of the Action,” “Initial and Target Values for Each Output Indicator,” “Intermediate Outcome Indicators,” “Initial and Target Values for Each Intermediate Outcome Indicator,” “Annual Required Budget,” and “Benefit-Cost Ratio (B/C) of Implementing Each Action.” An analytical-management dashboard for monitoring and evaluating the status of indicators related to the various actions of the operational program should be developed and updated periodically.

Abstract In recent years, fire has been one of the main causes of destruction of forests and rangelands worldwide and in Iran, resulting in serious consequences and damages such as threats to biodiversity and exacerbation of climate change. Analysis of fires occurring in the country over the past decade shows that approximately 5%, 5%, and 90% of the fires are attributed respectively to natural causes, intentional human causes, and unintentional human causes. A review of the legislative background in this field indicates that although lawmakers have attempted to manage and combat forest and rangeland fires through various laws—such as the Law on Protection and Exploitation of Forests and Rangelands, the Hunting and Fishing Law, the Law on Increasing Productivity in Agriculture and Natural Resources, the Clean Air Act, and the Islamic Penal Code—the relevant provisions lack the necessary comprehensiveness and sufficiency. The decades-long increasing trend of fires in forests and rangelands and the substantial damages imposed on the country testify to this fact. A comparative study of the laws of Iran, France, Turkey, and South Africa shows that, overall, legislative matters related to combating fires in forests and rangelands can be categorized into three main areas: pre-fire actions, actions during the fire, and post-fire measures. This report attempts to compare the relevant laws of South Africa, Turkey, and France based on these axes with the corresponding laws of Iran, and based on this comparison, proposes a legislative framework for the management and combating of forest and rangeland fires in the country.

Abstract In the review of annual budget bills, one of the primary considerations is the relationship and consistency between the budget bill and the five-year development plan law. This is because one of the main functions of the budget—especially since governments, in addition to their classical roles, have also taken on development responsibilities—is its role in financing the implementation of the plan. The Plan and Budget Organization, aiming to demonstrate its efforts in preparing the 2025 budget bill in accordance with the Seventh Development Plan Law, has provided an alignment table in the third chapter of the “Supporting Reports for the Preparation of the National Budget Bill for the year 2025.” It claims that 83 provisions of the Development Plan Law have formed the basis for drafting part of the provisions in the first section of the 2025 budget bill. This report examines the alignment table presented by the Plan and Budget Organization. According to this review, it was found that only about 22% of the program provisions mentioned have corresponding fully aligned budget provisions. Approximately 21% show a relative or partial alignment, while about 57% of the referred budget provisions do not align with the corresponding provisions of the Seventh Development Plan Law. Furthermore, contrary to the explicit requirement in the last part of paragraph “B” of Article (118) of the Seventh Development Plan Law—which mandates the inclusion of a table on “Sources of Funding for the Implementation of Program Provisions” in the budget law—not even the aggregate figure of this table is included in the first section of the budget bill.

Abstract The Law on the Protection of the Rights of Persons with Disabilities is considered one of the most important social policy documents in the country concerning individuals with disabilities. Given the significance of this issue, the present report evaluates Chapter Six of the law, which addresses the topic of housing. Based on the findings, from 2018 to 2023 (1397 to 1402 in the Iranian calendar), the budget appropriations stipulated in Article 17 were not allocated by the plan and Budget Organization to the Central Bank. Consequently, the low-interest housing facilities envisioned in this article were not provided to eligible applicants. Ambiguities in defining the scope of “supportive measures” as non-cash facilities, as well as the absence of implementing regulations, constitute additional operational challenges in enforcing this article. Over the course of six years, only 4% of persons with disabilities have benefited from housing services. Given that these services are a combination of the obligations set out in the housing chapter of the law and independent programs—such as the rental deposit loan scheme provided by the Welfare Organization—this figure cannot be considered a satisfactory reflection of Article 17’s implementation. Regarding Article 18, the overlap between its prescribed obligations and the supportive measures under Article 17, along with inconsistencies in statistical and operational reporting, indicate an overall unsatisfactory fulfillment of its intended duties. Among the housing-related provisions in the aforementioned law, Article 19 has shown relatively better performance, with approximately 85% of registered requests being fulfilled. Nevertheless, the limitation of its benefits to those possessing land ownership documents has excluded more vulnerable groups of persons with disabilities from accessing its advantages. Moreover, due to the low financial weight of the obligations under this article in the context of household housing expenses, it cannot be regarded as playing a decisive role in making housing affordable for persons with disabilities.

Abstract Recent reports indicate that Iran and the Middle East region will face a significant increase in air temperature by 2.6 degrees Celsius and a 35% reduction in precipitation over the coming decades. Therefore, climate change in Iran and the Middle East is more severe compared to many other regions of the world. Analysis of changes in the annual average temperature shows that Iran will warm at an accelerated pace in the near future (up to 2040). One of the most important consequences of these changes is the reduction of cloud cover, which leads to an increase in solar radiation reaching the earth’s surface, and especially an increase in the intensity of ultraviolet (UV) rays. The Ultraviolet Index (UVI) is a numerical scale indicating the intensity of the sun’s ultraviolet radiation, with values ranging from 1 to 11+. Recent studies show a significant rise in this index in Iran over recent years. A study conducted In Tehran over a 10-year period (2014 to 2023) showed that the average UV index during the warm months, especially from June to September, reached 11.28, and in some cases exceeded 12. In conditions of high, very high, and extreme UV indices, it is necessary to use sunglasses, sunscreen, hats, umbrellas, and thick clothing. Moreover, when the UV index exceeds 12 (extreme levels), it is recommended that individuals avoid going outdoors as much as possible, particularly between 10 a.m. and 4 p.m. If going outside is unavoidable, adequate protective measures must be taken. Therefore, the development of comprehensive and effective strategies to combat this phenomenon and mitigate its harmful effects is considered a national priority.

Abstract Soil erosion, as one of the most significant environmental challenges globally and particularly in Iran, poses a serious threat to food security and sustainable development due to its extensive consequences such as the reduction of soil fertility, pollution of water resources, increased risk of flooding, and desertification. Various natural and human factors, including climate change, improper management of water and soil resources, and changes in land use, play a role in intensifying soil erosion in Iran. This study, by reviewing the existing literature, evaluates the status of soil erosion in Iran and demonstrates that the rate of soil erosion in our country is approximately 16.5 tons per hectare per year, which is more than seven times the global average. Therefore, it can be asserted that the soil erosion crisis is a significant issue that has been somewhat neglected. Five years after the enactment and promulgation of the Soil Protection Law, its executive regulations have only recently been approved. If properly and fully implemented, this law can take an effective step toward preventing soil degradation and pollution—both major factors in soil erosion. Nevertheless, immediate and comprehensive actions at national and local levels, especially with the oversight and follow-up of the Islamic Consultative Assembly (Parliament), are essential for the implementation of the executive regulations of the Soil Protection Law. Moreover, strengthening intersectoral cooperation and the participation of local communities in implementing these programs is of particular importance. In this study, while examining the factors affecting soil erosion, suggestions for reducing this phenomenon have also been provided.

Abstract A solid foundation for proper planning is having a clear and vivid picture of the path traveled so far. This important goal can only be achieved through evaluation, performance measurement, and progress assessment. Therefore, the present report evaluates the performance of the provisions of the clauses including items “B” and “T” of Note 13, and also sub-item “2” of clause “J” of Note 13, as well as the allocated credits in the expenditure and capital asset acquisition chapters of the following entities in the first six months of the year 2024 (March–September 2024): Islamic Republic of Iran Broadcasting (IRIB), Islamic Republic News Agency (IRNA), Iranian Students News Agency (ISNA), International Quran News Agency (IQNA), Supervisory Council of IRIB, And the program supporting publishing, books, and newspapers. The findings are as follows: From the resources of clause “B” of Note 13 (one percent of government companies’ expenses allocated to promoting cultural activities), no allocations have been made so far to ISNA and IQNA news agencies, and only 10% has been allocated to IRIB. Evaluation of the implementation and fulfillment of the task stipulated in clause “T” of Note 13 regarding the directive on media programs of executive bodies has not been possible, despite its approval and notification. The task stipulated in sub-item “2” of clause “J” of Note 13 concerning the financing of IRIB from public budget resources amounting to 24 trillion rials, in the first six months of 2024, has been allocated 50%. However, no detailed report evaluating the results based on the designed performance indicators by IRIB has been presented. The credits allocated to the mentioned executive bodies have averaged about 45%, which is considered favorable.

Abstract The plan titled "List of Invalid Laws and Provisions in the Area of Veterans” involves the review of 138 different legal items related to veterans. Under this plan, 301 legal provisions will be identified as expired provisions and thus removed from the legal framework. Additionally, 187 provisions will be declared implicitly repealed and rendered ineffective. The overarching goal of this plan is to eliminate possible overlaps among existing laws and to codify and clarify the laws in this field. From this perspective, the general framework of the current plan, which aims to facilitate the implementation of the broader approach outlined in the Seventh Development Plan—particularly Clause “1” of Paragraph “T” of Article (31), regarding the amendment, consolidation, and clarification of veterans’ laws—is positively evaluated. This report examines the resolution passed by the Social Commission of the Islamic Consultative Assembly (Parliament) concerning the mentioned plan.

Abstract The draft titled ”Amendment to Certain Articles of the Law on the Organization, Duties, and Elections of Islamic Councils of the Country and the Election of Mayors,” registered under number 62 in the twelfth term of the Islamic Consultative Assembly, has been officially received and, in the session dated 25/06/1403 (Iranian calendar), was approved with amendments to the title and text by the Commission on Internal Affairs of the Country and Councils. The main and core subject of this draft amendment is to revise the law on the organization, duties, and elections of Islamic Councils in the country and the election of mayors, in line with implementing the general policies of elections and resolving certain ambiguities and practical issues related to elections and the activities of city and village councils. After reviewing several articles of the commission’s approved draft in the public plenary session, pursuant to Article 152 of the Assembly’s internal regulations, and following the Speaker’s proposal and the representatives’ approval, some articles of the draft were referred back to the relevant commission for further examination. Subsequently, after holding multiple sessions, the commission made amendments to its previous draft. This report will analyze and explain the referred articles and the commission’s resolution on internal affairs and councils.

Abstract According to Article (32) of the Law on Elections to the Islamic Consultative Assembly, certain officials who intend to run as candidates in the elections are required to resign from their positions at least six months prior to the registration date. This process commences eight months in advance through the announcement of equivalent positions by the Administrative and Employment Organization. In by-elections, which are held simultaneously with other elections for constituencies lacking representatives, the imposed time restriction hinders the proper implementation of the provisions of the election law. To resolve this issue, a proposal has been submitted to add a clause to Article (32), stipulating that the resignation deadline and enforcement of the article’s provisions in by-elections shall be set until the end of the pre-registration period (in accordance with Article 54). This adjustment in the timeline provides the necessary opportunity for resignation and replacement of resigning officials, thus guaranteeing the eligibility of candidates subject to Article (32). The resolution passed by the Commission on Internal Affairs and Councils, with these amendments, enables the accurate and timely implementation of the schedules in by-elections and safeguards the rights of the candidates. Its approval is therefore recommended.

Abstract The draft titled "”raft List of Invalid Legal Decrees during the Interim Period”, registered under number 45 in the twelfth term of the Islamic Consultative Assembly (Parliament), has been officially received and was approved in the session of the Judiciary and Legal Affairs Commission held on Sunday, 1403/07/08 (September 30, 2024). The main and central subject of this draft is to announce a list of invalid rulings that were enacted during the period when legislative authority was delegated to the Prime Minister for a six-month term, followed by a one-year extension, and subsequently delegated to the Cabinet during another period. This report aims to examine the resolution approved by the esteemed Judiciary and Legal Affairs Commission.

Abstract Ensuring balanced distribution of population and income across the country, sustainability in resource utilization, and increasing the competitiveness of each region compared to similar regions abroad are among the benefits of regional policymaking. Therefore, regional policymaking is essential in developing countries. Forty percent of Iran’s borders are adjacent to the sea, and seven provinces, covering about one-quarter of the country’s area, lie along the coastal strip. This geographical and political capacity highlights the impact of policymaking and planning to harness the abundant blessings of maritime areas on economic growth. In this context, on 16^th Aban 1402 (November 7, 2023), the Supreme Leader issued the general policies of “Sea-Based Development” in nine clauses. This report discusses the nature and essence of the sea-based economy and its requirements for planning. According to studies, the sea-based economy includes three categories of economic activities: “sea-based,” “sea-related,” and “in the environment adjacent to the sea.” Accordingly, this report identifies 26 categories of economic activities under the sea-based economy and demonstrates that this classification aligns with the guidelines of the general policies for sea-based development. In the introduction of the issued policies, the preparation of a comprehensive plan for their realization within six months is emphasized, and clause four mandates the formulation of a comprehensive sea-based development plan within a maximum of one year after the policy issuance. The 13^th government of Iran also approved the “Comprehensive Plan for Realizing the General Policies of Sea-Based Development” on 12^th Ordibehesht 1403 (May 2, 2024). Considering the Supreme Leader’s view that “relying on the sea for the economy has prerequisites that must be adhered to,” and based on studies, the main requirements for planning sea-based economic growth are four components: “the expanse and geographical position of the land,” “the quantity and quality of human resources,” “societal cultural beliefs,” and “policy-making and diplomacy.” This report evaluates the 13^th government’s plan within the framework of these components and offers suggestions for use in drafting the “Comprehensive Sea-Based Development Plan” as stipulated in clause four of the general policies.

Abstract An examination of the Law on the Formation of Islamic Labor Councils, enacted in 1984 (1363 Iranian calendar), indicates that the role of councils in the workplace is primarily defined as advisory arms to management. On the other hand, policy-making trends in various countries demonstrate that beyond the advisory status, the legal frameworks governing workers’ councils are designed in such a way that within these councils, employees systematically participate in the administration and management of their workplaces and are involved in decision-making processes concerning matters related to them. In the present report, through documentary and comparative studies and legal text analysis of selected countries, it was observed that establishing a system of “joint decision-making” at the level of work units and within the framework of workers’ councils has significant benefits for the interests of both management and personnel of the respective units. These benefits include providing a suitable foundation for the equitable distribution of wealth and surplus value, enhancing economic performance and productivity of companies, preventing domination and subjugation in employer-employee relationships, managing workplace conflicts, preventing various worker strikes, increasing cooperation and coordination between workers and shareholders, and qualitatively improving supervisory mechanisms in decision-making processes within work units. Accordingly, a gradual shift in the model of company management based on a joint decision-making order is proposed, utilizing the existing capacity in Chapter Seven of the Labor Law, as well as reforming mechanisms that ensure protections for representatives of Islamic Labor Councils.

Abstract An analysis of the public revenues and expenditures in the first four months of the year 2024 indicates that the realized resources accounted for 77% of the approved budget figure. Tax revenues, with a 74% realization rate, were the main source of financing, while customs revenues only achieved 57% of the approved amount. Additionally, the government’s cash deficit during this period reached 19 trillion tomans, which was covered by utilizing resources from the National Development Fund and the resources stipulated under Article 125 of the Public Accounting Law. The performance of the resources of the Targeted Subsidies Organization, as outlined in Note 8 of the Budget Law, shows a 55% realization of the approved resources, and a deficit of approximately 200 trillion tomans is forecasted. It is noteworthy that the performance of targeted subsidy resources has been accompanied by the non-transfer of the National Development Fund’s share from the export of oil products. Overall, it is predicted that by the end of 2024, 89% of the public budget resources will be realized. Assuming a 100% allocation of expenditures, at least 270 trillion tomans of new resources will be required. This deficit is expected to be compensated through borrowing from the National Development Fund, issuance of debt securities beyond the budget ceiling, and non-allocation of certain expenditures.

Abstract The Competition Council was established pursuant to Article 53 of the Law on the Implementation of the General Policies of Principle 44 of the Constitution (ratified in 2008 by the Expediency Discernment Council), and held its first session in 2009. A review of Chapter Nine of the said law reveals that the primary objective behind the establishment of the Competition Council was to counter anti-competitive behaviors. Now, after fifteen years since its formation, evidence suggests that the Council has not been able to effectively confront anti-competitive practices within the economy as envisioned by the legislators. The principal reason for this lack of success lies in legislative deficiencies. One of the most significant challenges faced by the Competition Council is the failure of judicial enforcement units to implement the Council’s rulings. Moreover, although the monetary fines stipulated in the law are already minimal and non-deterrent in nature, the Council lacks information even on whether these insufficient penalties have been collected or not. Other legal shortcomings that have hindered the Council’s effectiveness include the low and non-deterrent financial penalties, the limited scope of the Council’s authority to impose such fines, and the lack of prior (ex-ante) oversight by the Council on merger and acquisition transactions. Additional major challenges include overlapping responsibilities between the Competition Council and the government in the area of sectoral regulation, as well as the lack of cooperation from public non-governmental institutions in submitting reports and reducing their market share and ownership in goods and services markets and economic enterprises, as stipulated in Article 6 of the aforementioned law.

Abstract This report is a continuation of the previously published “Report on the Status of Large Loans and Commitments in the Banking Network in 2022.” According to the mandate stipulated in Paragraph “D” of Note “16” of the 2022 Budget Law, the Central Bank of Iran is required to publish quarterly data regarding loans and commitments extended to related parties by banks and non-bank credit institutions. These data provide a valuable resource for analyzing and examining key variables concerning loans and commitments to related parties, which is the main subject of this report. Similar to the previous report, this one first examines the detailed (itemized) and aggregated statistics of loans and commitments extended to related parties. Then, based on the core (regulatory) capital of the institutions, the report assesses the extent to which banks and credit institutions have violated legal limits concerning related party lending and commitments. The findings indicate that, in violation of the Regulations on Loans and Commitments to Related Parties, a significant number of banks and credit institutions have committed widespread infractions in granting such loans and accepting commitments. It is worth noting that exceeding the legally established limits for related party lending and preferential financing exposes the bank or credit institution to the risk of the related parties’ default, which in turn leads to contagion risk—the spread of financial distress from one institution to others. This situation not only harms the financial health of the violating institution but also imposes negative externalities on the entire banking network. Therefore, supervisory actions and necessary penalties must be enforced by the Central Bank and other regulatory bodies.

Abstract Trust is one of the most crucial elements that bind the people to the government. Research findings and surveys conducted worldwide indicate that public trust in governance has been declining in recent years; to the extent that, according to some scholars, distrust in government has become a global crisis. Consequently, numerous studies have been conducted in recent years with the aim of better understanding this phenomenon and developing strategies to address it, making this issue one of the foremost concerns in governance systems across various countries. The increasing importance of trust in governance worldwide has led emerging fields such as behavioral and cognitive sciences to intensify their study of this issue and offer new approaches for policymakers to tackle it. Measuring the level of trust in a manner that maximally provides actionable insights for policymakers to restore and enhance trust is one of the main objectives of these recent studies. The present report aims to review the latest theoretical literature on public trust in governance within the global behavioral science knowledge base, present a conceptual framework designed for trust in governance, and introduce a localized index for measuring trust in governance in Iran. This indigenous index considers five components of trust: competence, benevolence, integrity, and openness. Based on this conceptual framework, the developed measurement index was psychometrically validated and confirmed.

Abstract In recent decades, celebrity culture has experienced significant growth in Iran. Since the 2010s, Iranian society has witnessed an increase in both the number and diversity of celebrities, with new arenas such as politics and academic environments also undergoing the process of “celebrification.” Meanwhile, few surveys have been conducted focusing on public attitudes and perspectives toward celebrities and celebrity culture in Iran. The “Nation’s Opinion Poll” is a national survey aimed at describing the public’s attitudes toward celebrity culture in Iran, the extent of fandom toward celebrities, and the level of public trust in them.

Abstract Given that government policies regarding the higher education system are not uniformly regulated and considering the challenges facing Iran’s higher education system- such as university financing, the mismatch between student admission capacity and labor market needs, and the rising unemployment of graduates in certain fields- this paper aims to examine how the aforementioned duty is reflected in the laws and regulations of selected countries and, ultimately, to extract findings and lessons for Iran’s higher education system. The study revealed that in the constitutions of the selected countries, whether higher education is provided by the government or non-governmental entities is not explicitly stated. However, rather than clear dominance of the government over higher education, the government is assumed to act as a regulator and facilitator. Another common element in the constitutions of these countries is the targeted support of the government for higher education. By examining domestic laws and practices in various countries, it was found that tools such as multi-year contracts between universities and the government are employed; such measures not only guide university activities but also enable performance-based budgeting. Another important point is that higher education and research fall under an “inter-ministerial” mission involving multiple ministries, and performance indicators are defined for each program, which are attached to the budget documents. Finally, the extent of government support for different academic disciplines is not uniform. In any case, it can be concluded that government policy formulation in the field of higher education should logically consider the theory of government in the target society as well as the reciprocal impact of such policies on other social and economic policies of governments.

Abstract In recent years, the concept of maritime-oriented development has attracted considerable attention and has been emphasized in the General Policies issued by the Supreme Leader of the Islamic Republic of Iran (may his shadow be extended), the Seventh Development Plan, and various resolutions of the Cabinet of Ministers and the Supreme Council of Urban Planning and Architecture of Iran. As part of one such resolution, the Cabinet of Ministers ratified the “Comprehensive Program for the Realization of the General Policies of Maritime Development” in May 2024. Notably, Clause 1 of this resolution introduced, for the first time, the concept of the “Southern Coastal Regions of the Country.” Given the significance of this matter and despite the relative clarity of the definition provided, identifying which counties fall under the “Southern Coastal Regions of the Country” requires a quantitative and spatial research approach. According to the official definition, a county qualifies as part of the “Southern Coastal Regions” if it either has a coastline bordering the sea or if more than 50% of its population or land area lies within a 60-kilometer radius of the coastline. The research conducted based on this definition identified 31 counties located in five provinces -Sistan and Baluchestan, Hormozgan, Fars, Bushehr, and Khuzestan- as falling within the scope of the “Southern Coastal Regions of the Country.”

Abstract

Abstract In the 2025 budget bill, the total tax revenues are projected to be 1,964 trillion tomans. This amount is 39% higher than the approved figure for the previous year. Given the forecasted nominal economic growth of 35%, taxes will constitute a larger share of the economy. Of the total revenues, 1,700 trillion tomans pertain to the sum of direct taxes and taxes on goods and services, while 264 trillion tomans come from import taxes. The share of total tax revenues in the government's total public resources is 33%, and in expenditures, 48%. In 2025, the ratio of total tax revenues to gross domestic product will reach 5.5%. To achieve the target set by the Seventh Development Plan, it is proposed that the sum of direct taxes and taxes on goods and services increase by 261 trillion tomans to reach 1,961 trillion tomans. Additionally, considering the proposed reduction of customs duties on machinery and production materials to 2%, import taxes are overestimated by 49 trillion tomans. In Note (1) of the bill, the value-added tax (VAT) rate remains at 10%, unchanged from the previous year. However, compared to last year, the tax exemption thresholds for salaried employees and businesses have doubled, reaching annual amounts of 288 million tomans and 200 million tomans, respectively. Furthermore, the import of new passenger cars up to 2 billion euros from exporters’ foreign currency resources has been exempted from the 100% customs duties. For most goods, the exchange rate used as the basis for calculating customs duties has been changed to the central gold and currency exchange rate on the day of declaration.

Abstract The subject of Note 2 in the 2025 budget bill is domestic and foreign financing. Reforming financing methods is one of the effective strategies to achieve the macroeconomic indicator targets set forth in the Seventh Five-Year Development Plan of the Islamic Republic of Iran. Indicators such as an annual economic growth rate of 8 percentage points and reducing the inflation rate to 9.5 percent by the final year of the plan are among these goals. Therefore, addressing the provisions of this note can help clarify the government’s financing methods and, to some extent, the financing mechanisms of the private sector. Malfunctions in government financing create grounds for financial dominance. Financial dominance is one of the driving forces behind liquidity growth and reduces the share of private sector enterprises in obtaining banking facilities. This note highlights important points regarding the use of intra-year credit documents backed by the balance of the treasury account with the Central Bank, setting a ceiling on the issuance of guarantees and commitments, conditioning the acceptance and settlement of government debts, authorizing the offsetting of receivables from the government and state-owned companies, allowing the government to issue guarantee bonds, and resolving the debts of organizations such as the Targeted Subsidies Organization, the State Trading Corporation, the Rural Cooperative Organization, and the Support Organization for Animal Husbandry to banks and the Central Bank. Some of the matters raised in this note directly or indirectly affect the degree of financial dominance of the government in the economy. The following report will review and analyze these provisions, as well as other provisions of this note that may not influence the level of financial dominance but affect the government’s financial management and executive operations.

Abstract The distinguishing feature of the approval process of the 2024 budget was its two-stage procedure, in accordance with the amendments made to Articles 180 and 182 of the Internal Regulations of the Islamic Consultative Assembly (Parliament), concerning changes in the mechanism for approving annual budgets. One of the most significant events in the process from the draft bill to the law was the rejection of the generalities (overall approval) of the bill, followed by changes in the aggregate categories of government expenditures and public resources. One of the main reasons for the initial rejection of the draft was the omission of some items approved in the Seventh Development Plan, including the equalization of retirees’ pensions—a matter that was subsequently corrected after the generalities were rejected. The government allocated resources for pension equalization through a 1% increase in the value-added tax. In the aggregate macroeconomic tables, the Parliament increased the general government expenditures from 2,462 trillion rials to 2,562 trillion rials. Of this increase, current expenditures accounted for 75 trillion rials, and capital asset acquisition accounted for 25 trillion rials. To cover the public expenditures, the ceiling for government public resources was also raised from 2,462 trillion rials to 2,562 trillion rials. This increase pertained to tax revenues, which rose from 1,122 trillion rials to 1,222 trillion rials. Regarding budget provisions, the share of the National Development Fund from 42% of the revenues derived from crude oil exports, gas condensates, and net gas exports in the draft bill was increased to 45% in the law. Additionally, a ceiling of 13.6 billion euros was set for the importation of essential agricultural goods, medicines and their raw materials, and medical consumable equipment.

Abstract The 2025 national budget bill has undergone formal changes compared to previous budget laws. One of the main changes is the inclusion of targeted subsidy expenditures within the total budget expenditures. Accordingly, Clause 13 of this bill, which addresses social support, primarily encompasses provisions related to the targeting of subsidies. This report evaluates Clause 13 of the budget bill from two perspectives: its alignment with current conditions and its compliance with the Seventh Development Plan. The results of this evaluation indicate that the 2025 budget bill does not significantly differ from previous budget laws in terms of support policies. Given the livelihood constraints stemming from unfavorable economic conditions over the past decade, the country faces challenges such as malnutrition, widespread poverty, limited coverage of support programs, low efficiency of the subsidy system, and increased rates of school dropout and absenteeism. However, the proposed budget bill has not adequately addressed some of these issues. This is while the Seventh Development Plan emphasizes reducing the absolute poverty rate to zero, providing livelihood support such as food coupons, and supporting children and students within the framework of poverty alleviation through a school-centered approach. Considering the goals of the Seventh Development Plan—namely, the elimination of absolute poverty and the emphasis on social support for families, especially in child nutrition and education—it is recommended that, in addition to utilizing existing legal capacities that define the resources for the support system, new capacities be created, such as increasing the value-added tax rate, to allocate new credits for poverty alleviation through improving nutrition and education for students.

Abstract One of the differences between the 2025 budget bill and last year’s bill is the increase in the number of clauses and the resulting changes in the provisions of some of these clauses. Unlike last year’s bill, where the provisions related to the “budget” topic were included in Clause (3), this year Clause (5) of the budget bill addresses the provisions concerning the “budget” topic. Each of these provisions pertains to important aspects of the country’s financial and executive management, significantly affecting how budget credits are spent and the implementation of development, service, and welfare projects. Given the importance of this clause, some of the issues raised in it are also key points highlighted in the Seventh Development Plan. Providing an expert overview of its sections can clarify the scope and impact of these provisions. It is worth noting that some of the major economic challenges, such as high inflation rates and fluctuating economic growth, stem from government financial policymaking. Reforming government financial policy is not feasible without restructuring the country’s budget; one of the ways to reform the budget structure is addressing certain issues within the provisions related to the “budget.” The following report reviews and analyzes each of these provisions, offers expert recommendations related to them, and discusses how these provisions influence the government’s financial policymaking.

Abstract In Note 4 of the General Budget Bill for the year 2025,  the provisions related to state-owned companies are presented in seven clauses, six of which are repetitions of the provisions from previous budget bills. The only new provision in this note is clause “Ch,” concerning the change in the status of the Targeted Subsidies Organization from a state-owned company to a government institution, which is not approved. The proposal to delete clause “P” of Note 4, given the unnecessary requirement for companies to register with the General Directorate of Companies and Non-Commercial Institutions according to Article 587 of the Commercial Code, is a notable point in the provisions of Note 4 of the 2025 budget bill. Additionally, supplementary proposals to Note 4 have been presented in three clauses with the aim of securing resources and facilitating investment by development organizations.

Abstract Despite efforts made to reduce the government’s budget dependency on oil, a significant portion of the budget remains directly and indirectly reliant on oil revenues. Therefore, awareness of the likely export oil price for the coming year is of great importance for improving the accuracy of calculations related to annual budget revenues. Considering this, the present report, by reviewing the forecasts of international institutions regarding next year’s oil price, the oil price figures included in the budgets of four oil-exporting countries, and taking into account the conditions of the country’s oil sales under sanctions, predicts that the average export oil price for the year 2025 will be in the range of 61 to 65 US dollars per barrel.

Abstract The annual reports titled “Reviewing the Budget Bill in Plain Language” aim to present the contents of national budget bills in a simplified and non-technical manner for the general public. The purpose is to enable citizens to better understand the national budget and thereby become more informed, demanding, and supportive participants in the decisions made by their elected representatives in the parliament. In the 2025 Budget Bill, the total projected revenues and expenditures of the government’s general budget exceed 6,400 trillion tomans. The composition is as follows: On the revenue side: 36% is expected to come from incomes, primarily tax revenues. 36% is projected to be obtained through the sale of capital assets, mainly from the export or sale of oil, gas, and petroleum products. 22% is to be financed via financial asset transfers, predominantly through borrowing from the National Development Fund or the issuance of government bonds. 7% will be provided by dedicated revenues of government agencies. On the expenditure side: 64% is allocated to current expenditures, including salaries of public sector employees, pensions of government retirees, and cash subsidies and other welfare and support payments. 19% is designated for capital expenditures, such as strengthening national defense capabilities and infrastructure projects. 11% is earmarked for repayment of principal debt. 7% is set aside for exclusive expenditures of governmental agencies. The most significant strength of the 2025 budget bill lies in the consolidation and unification of previously separate budgets, aimed at improving the management of total government revenues and expenditures and enhancing transparency, especially regarding the budget deficit and its financing methods. It Is worth noting that the critical next step after achieving such transparency is to take action toward increasing the government’s sustainable revenues, improving expenditure management, and reducing the growing trend of budget deficits. Accomplishing this will require more comprehensive and precise planning.

Abstract Article 16 of the 2025 national budget bill, titled Health, consists of five clauses addressing the following topics: Health insurance, life insurance, and retirement benefits for medical sciences assistants; The reserve account for the allocation and payment of credits related to medicines and other health-related items, as well as the receivables of universities/medical schools from insurance organizations; A six-month reserve stockpile of essential medicines and medical supplies; The determination of a minimum percentage of levies on harmful goods and the allocation of ten percent of the revenues generated from taxes and levies on harmful goods to health, specifically for the development of healthcare infrastructure in rural and underprivileged areas. The detailed clauses and expert evaluations regarding each are presented in Tables 1 and 2, respectively.

Abstract Establishing justice-orientation and enhancing efficiency and productivity in the government’s human capital is considered one of the most essential prerequisites for achieving a proper administrative system, as stipulated in Clause 10 of Article 3 of the Constitution. This principle has also been emphasized in the general policies of the country’s administrative system. Accordingly, Note 17 of the General Budget Bill for the year 2025 , consisting of 6 clauses and 8 parts, aims to organize the government’s human capital and establish financial discipline by proposing provisions concerning the smartening of mechanisms for paying employees’ salaries and benefits, recruitment and employment of human resources, and the population and housing census based on registered data as the basis for payments. The conducted reviews indicate that attention to data governance and the smartening of processes in the human resources domain—particularly in the employee compensation system of executive bodies—is among the most significant strengths of the provisions included in this Note. However, the Inclusion of non-budgetary provisions and amendments to permanent laws, as well as ambiguities and lack of clarity in some of the proposed provisions, are considered among the weaknesses of Note 17 in the General Budget Bill for 2025. Accordingly, the key recommendations presented in this report include refining ambiguous provisions, enhancing the enforceability of the stated clauses and parts, and strengthening the supervisory aspect of the provisions included in this Note.

Abstract Article 15 of the 2025 budget bill addresses mandatory loans and employment. This article corresponds to Article 2 of the 2024 Budget Law, Article 18 of the budget laws in previous years, Clauseث  of Article 13 of the 2024 Budget Law, and Article 16 of previous budget laws. The employment section, similar to employment creation and production boom provisions of previous years, contains a large number of targets without considering the necessary operational requirements for their realization. To prevent the recurrence of this approach in the coming years, it is suggested that the allocation of funds for production boom and employment creation be aligned with the “National Strategy for Industrial Advancement and Enhancement of the Country’s Value Chain,” the optimal production program (cultivation pattern) for agricultural products as per Clause T of Article 48 and Clause A of Article 33 of the Seventh Development Plan Law. Additionally, capacities under the Financing Law for Production and Infrastructure-including “nameless investment packages” and “guarantee funds” - should be utilized. Regarding Qard al-Hasan (interest-free) loans, due to a 66% growth in marriage loans in 2024 and the challenges that arose during this year, it is proposed that the ceiling for these loans be increased to 4,500 trillion rials. Of this amount, 3,000 trillion rials would be allocated to marriage loans (without increasing the individual ceiling), 1,000 trillion rials to childbirth loans (with an increase of 200 million rials in the individual ceiling), and 500 trillion rials to employment loans, with priority given to the Imam Khomeini Relief Foundation and the Welfare Organization.

Abstract The single article of the General Budget Bill for the year 2025 consists of 17 notes, of which Note 14 includes 8 clauses primarily addressing budgetary matters related to the electricity sector and nuclear energy. In the electricity sector, some of the most important issues highlighted in the Seventh Development Plan include diversification of the electricity production portfolio, growth of electricity transactions in the Energy Exchange, and electricity exports by the private sector. However, the review of the provisions concerning electricity and nuclear energy in the budget bill indicates no change in the approach of these provisions. This is because the provisions related to electricity tariffs, insurance for residential and commercial electricity consumers, sale of products containing radioactive materials, and the method of purchasing electricity from the Bushehr nuclear power plant, which were approved in the 2024 budget law, have been presented with only minor changes in the 2025 budget bill. The repayment of government obligations to the Ministry of Energy through asset transfers is a new approach proposed in the 2025 budget bill. Utilizing the capacities of annual budget laws to achieve the objectives of five-year development plans and to facilitate the implementation of related legislation is necessary, and it is essential that budgetary provisions related to these higher-level laws be taken into account. Accordingly, this report presents proposed amendments and additions related to Note 14 of the General Budget Bill for the year 2025.

Abstract The establishment of justice-centered mechanisms for increasing the salaries and benefits of various groups of government wage earners in annual budget laws is considered one of the most effective and accessible approaches to enhancing justice in the government employee compensation system. In this report, alongside analyzing the appropriations for compensation of government employees and retirees in the 2025 budget bill, the provisions contained in Clause 12 of the bill have been evaluated. According to the conducted reviews and assumptions underlying this bill, as well as the salary increases implemented in the current year, approximately forty-four percent (44%) of the total public expenditures of the government in 2025 will be allocated to the payment of salaries and benefits for various groups of government employees and retirees. In this regard, the key assumptions of the budget bill in this area include a 20% increase in salaries for employees and retirees, along with a 50% and 100% growth, respectively, in family and child allowances. Regarding the alignment between these increases and the inflation rate, it is worth noting that although a higher increase in government employees’ salaries without securing sustainable revenue sources—especially in circumstances where the operational balance of the bill is estimated at approximately a negative 1,800 trillion rials—may deepen the budget deficit, cause further inflation, and lead to demands for additional salary increases; nevertheless, the continuation of a significant gap between annual salary increases and the inflation rate for several consecutive years may also result in decreased employee productivity and administrative system efficiency, wage imbalances between the public and private sectors, increased incentives for executive agencies to seek special allowances, and deepened injustice within the national compensation system. Therefore, it is recommended that a working group composed of members from the Parliament and the Government, in cooperation with specialized experts, be formed to identify new sources of cash and non-cash support and to consider additional supportive measures in this regard.

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.

Abstract The judgments of Provision 10 in the 2025 national budget bill, regarding housing, cover only a limited segment of the mandates outlined in the Seventh Development Plan. Specifically, clause (b) of this article combines the provisions of Articles 50, 52, 53, and 54. Therefore, it is primarily expected that budgetary-related provisions from the Development Plan be presented explicitly or in aggregate form with clear specification of expenditures within the bill. Practically, considering the current crisis of housing affordability and the difficulty households face in purchasing or even renting homes, and in compliance with Article 31 of the Constitution, the obligations set forth in Chapter Eleven of the Seventh Development Plan (which have a budgetary nature), and the mandates of the Housing Production Leap Law—especially regarding the budget share in the National Housing Fund resources and the provision of infrastructure and supportive services—the government is expected to actively engage in securing the budget for infrastructure, foundational facilities, and preparation for housing development. This is a practice generally observed in most countries, where approximately one percent of their gross domestic product is allocated to various supports and expenditures in the housing sector. Furthermore, the overall assessment of Article 10 in the 2025 budget bill concerning transportation reveals that the provisions presented bear little relation to the Seventh Development Plan. For instance, although according to paragraph (t) of Article 59 of the Seventh Development Plan Law, the government is obligated to allocate the necessary budget annually within the budget bills to reduce road traffic fatalities by 10%, the 2025 budget bill—as the annual implementation segment of the Development Plan—has not adequately addressed this issue. Therefore, it is recommended that the revenues from traffic violation fines, as outlined in the framework of the Seventh Development Plan, be dedicated to this objective. Additionally, concerning the use of foreign airlines on domestic routes, given that this provision is non-budgetary and entails restrictive conditions—such as the requirement for bilateral agreements and parliamentary approval—it is proposed that this matter be addressed through amending Article 9 of the Civil Aviation Law.

Abstract Natural disasters such as floods, earthquakes, storms, land subsidence, and others consistently result in significant human casualties and financial losses. They can cause extensive damage to infrastructure and urban facilities, destruction of assets and national capital, and disruption of urban foundational systems. A crucial point In macro policy-making is the priority and cost-effectiveness of disaster prevention over post-event measures. Various studies estimate that the cost of emergency response and especially reconstruction is between 7 to 9 times higher than that of prevention. In other words, for every unit of expenditure on prevention, at least seven units of reconstruction and damage compensation costs are saved. This cost saving directly impacts the reduction of budget expenditures and enhances the government’s ability to allocate resources to other essential sectors. It also leads to increased public satisfaction and social capital. One of the strengths of the 2025 national budget bill is addressing disasters and crises under a single article (chapter). Considering that disasters account for at least 5% of the country’s budget damages and that the costs of prevention are several times lower than reconstruction expenses, this structural change can lead to reduced financial and human losses, as well as budgetary savings. Simply put, by spending a smaller amount on reducing vulnerability and enhancing resilience against disasters, compared to the average budget allocated for disaster reconstruction, it is possible to achieve budget savings, reduce casualties and damages, and increase public satisfaction. However, the clauses presented under this article cover only a limited portion of the overall priorities and measures for disaster risk reduction and need to be further completed.

Abstract Note 8 of the 2024 budget bill pertains to education, research, and culture, comprising four provisions related to education and research and three provisions concerning culture. Although these topics are intersectoral in nature, they also appear in other notes of the budget bill. This report provides an expert review of the clauses in Note 8 and, with an emphasis on the Seventh Development Plan, offers corrective and supplementary recommendations aligned with this document. It is noteworthy that nearly 20% of the provisions in Note 8 lack a budgetary nature, indicating that the potential of this bill to reflect the Seventh Development Plan’s sectoral breakdown has not been fully utilized. Subsequently, additional corrective and supplementary suggestions have been put forward to address this issue. The most critical amendment relates to clause “S” of Note 8, which, due to the multiplicity of sectors and executive agencies receiving funds under this provision, proposes a meaningful system for allocating credits based on the Seventh Development Plan’s framework.

Abstract Adherence to the fundamental claimed principles of human rights is an assumed and undeniable matter, at least for those who claim to uphold them. Among them, the United States, which is a false claimant to the defense of human rights, has played a highly destructive role in violating human rights across the world. The American structure and its agents have committed the most severe crimes in disregarding human rights, violating not only international laws but also domestic laws to a significant extent. The present report examines human rights violations in the United States in the year 2023 (2023-2024). This report is divided into two main sections: human rights violations at the domestic level and at the international level. The domestic section covers issues ranging from racial and minority discrimination to violations of the rights of immigrants, women, and children. The international section reviews the inhumane impacts of U.S. actions worldwide, international interactions, and human rights violations in specific territories. The primary objective of this report is to illuminate the reality of human rights violations in the United States, free from any bias or political prejudice. Therefore, to enable a precise examination of this trend and a clearer and better understanding of the dimensions of the issue, the report utilizes thorough analysis of data, documented evidence, and reliable statistics. In conclusion, by presenting constructive recommendations and actionable measures, it is hoped that clear pathways for reforming and improving the human rights situation in the United States will be established. This process, through the concerted efforts and coordination of the international community, will provide the necessary grounds to exert pressure on the world’s largest violator of human rights.

Abstract At the macro and micro levels of governance, policies, laws, programs, and interventions are continuously designed, approved, and implemented with the aim of improving the country’s conditions, enhancing the well-being of the population, and achieving strategic objectives. However, there is often limited information available regarding the actual effectiveness and efficiency of these policies and laws. Policymakers frequently design new policies, laws, and programs to replace existing ones without having adequate certainty about whether these new measures will be effective, or how they could be improved. In this regard, the global trend has increasingly shifted toward evidence-based policymaking and legislation. In this modern approach, before new policies, laws, and programs are approved and implemented, policymakers have access to sufficient evidence concerning their effectiveness. Based on this robust evidence, they are able to select the most effective policy options and improve their quality. One of the most precise and reliable methods for determining whether a given policy, law, or program is effective and efficient is through the use of Randomized Controlled Trials (RCTs). This report focuses on the capacity of RCTs to support evidence-based legislation. It introduces the method, outlines the requirements and procedures for its application, and presents recommendations for its integration into the legislative process of the Islamic Consultative Assembly, as one of the country’s most important governance institutions.

Abstract This report examines science and technology awards as instruments of policymaking. It begins by highlighting the importance and position of soft tools in policymaking and introduces the science and technology sector as a suitable context for their application. The history of scientific awards is then explored, with an emphasis on the significance of science throughout history, including in Islamic civilization. Five prominent scientific awards -Nobel, Fields, Japan, Queen Elizabeth, and Mustafa (PBUH)-are introduced and comparatively analyzed. Furthermore, the role and importance of scientific awards in science and technology policymaking are described across twelve key areas, some of which include identifying and supporting elites, promoting specific scientific orientations, discourse formation, role modeling, civilization building, enhancing scientific diplomacy, and reviving academic disciplines. The examination of scientific awards in policymaking in countries such as Sweden, the United States, and Saudi Arabia, along with an analysis of the opportunities and challenges facing scientific awards in Iran, provides key insights and successful experiences in this field. This serves as a foundation for policy recommendations in Iran. Among the opportunities discussed are the status of awards in the viewpoint of the Supreme Leader, human and institutional capacities, and international collaborations. Concurrently, challenges such as unstable financial resources, weaknesses in management and organizational structure, lack of transparency in evaluation, and political difficulties are also addressed. In conclusion, the report offers suggestions for improving and enhancing the role of scientific awards, including the development of a comprehensive roadmap, establishment of a centralized secretariat for science and technology awards, creation of an awards consortium, and linking awards with national priorities, among others.

Abstract Social enterprises are considered one of the most important elements for social and economic development in a country. Neglecting this type of business leads to confusion among social entrepreneurs and the loss of the country’s social capital. The Social Studies Office of the Research Center of the Iranian Parliament has examined this social phenomenon through a series of reports. In the first report, titled “Conceptualizing Social Enterprises,” after identifying the “indicators” of social companies, the distinctions between “social enterprises” and “social entrepreneurship” and “social innovation,” as well as their boundaries with “charities and non-governmental organizations” and “commercial companies,” were clarified. In the present report, by using documentary and comparative studies, after reviewing the “legislative trends” in many developed countries, the “legal forms and legal personality,” “social labels, awards, and certifications,” and “governance mechanisms” in this field have been explained. The findings of this research indicate that leading countries in this ecosystem have provided suitable conditions for these enterprises by measures such as “establishing legal frameworks and legal personalities,” “conducting research and development to strengthen the social ecosystem,” and “creating logical and legal connections between social enterprises and the private sector for corporate social responsibility.” Accordingly, to organize emerging social enterprises in Iran, areas such as “establishing legal frameworks for social enterprises and companies,” “defining and accepting a new legal personality for these types of enterprises,” “creating accreditation mechanisms and awarding certifications to these enterprises,” “financial support and economic incentives for these enterprises,” and “formation and strengthening of supportive and regulatory institutions” have been proposed, which should be prioritized by relevant authorities.

Abstract The Budget Bill for the Year 2025 (2025/2026) is the first budget bill of the new government and parliament and, in a way, represents the second-year budget implementation of the Seventh Development Plan. The law of the Seventh Development Plan will influence both the macro figures and the clauses of the 2025 budget bill, as well as the prioritization in the detailed budget. Therefore, it is necessary that these enactments be considered during both stages of budget review. The most significant action taken by the government in the 2025 budget bill is the addition of the following three main items to the macro budget figures, which had previously been included only in the clauses but were not calculated in the macro figures of the budget: Resources and expenditures related to the targeting of subsidies; Oil deliveries to the armed forces aimed at strengthening defense capabilities; Repayment of Social Security Organization’s debts through set-off and repayment of debts to banks via securitization of their debts. In other words, the scope of public resources and expenditures in the 2025 budget bill has undergone relatively extensive changes compared to previous years, making comparisons with the 2024 budget law and the government’s financial performance challenging. Accordingly, adjustments must be made to the figures to enable comparison. With these necessary adjustments, the budget ceiling for 2025 will have increased by approximately 43% compared to the 2024 budget law. Furthermore, after these adjustments, revenues will have grown by 42%, capital asset disposals by 41%, and financial asset disposals by about 97%. Regarding resources, tax revenues have increased by 39% compared to the 2024 budget law. Article 26 of the Seventh Development Plan law states that by the end of the plan’s years, the ratio of tax revenues to GDP must reach 10%. To meet this target, the tax-to-GDP ratio in 2025 should be set at 6.3%; however, according to the figures recorded in the budget bill, this ratio stands at 5.5%. In other words, the annual proportional step to achieve the tax targets of the Seventh Development Plan is not foreseen in the 2025 budget bill. The 2025 budget bill anticipates total revenues of $35 billion from cash exports of crude oil, gas condensates, and net natural gas exports, of which 37.5% is the government’s share. Additionally, the government is borrowing from the National Development Fund’s resources in the 2025 budget bill, such that out of the fund’s 48% share, 28 percentage points represent government borrowing, while the remaining 20 percentage points will be deposited back into the fund. A notable point regarding the 2025 budget bill, compared to previous years, is that the withdrawal from the fund’s share and the planning for its resources are done within the budget bill and during the budget preparation phase. In contrast, in some previous years, these withdrawals occurred throughout the year without parliamentary oversight on their uses, reducing transparency. Therefore, including the borrowing figure from the National Development Fund in the 2025 budget bill is a positive step toward greater transparency and policy stability. Specifically, the high dependency of budget resources on oil exports, especially amid potential external shocks, remains a fundamental weakness of the budget. On the expenditure side, current expenditures have increased by about 55% compared to the 2024 budget, constituting 68% of total expenditures. With a 42% increase in revenues and a 55% increase in current expenditures, the gap between revenues and current expenditures has widened compared to the previous year, reaching 1,805 trillion rials. One notable aspect of the 2025 budget bill is the increased operational deficit. However, the 2025 budget bill is not easily comparable to previous years in this respect, as significant items of current expenditures, which were previously outside the scope of current budget appropriations and not reflected in budget documents, are now included in the macro figures. By aggregating and including off-budget expenditures, current appropriations have seen considerable growth. It is worth noting that if the approved figures for 2024 were updated similarly to the 2025 bill, current expenditure growth would still be significant. Overall, to have a consistent comparison of the operational deficit, the 2025 budget bill figures have been adjusted based on the budget scope of 2024. With these adjustments, the ratio of the operational deficit to the ceiling of general budget resources is 21%, which is higher than the approved and forecast figures for 2024. The main challenge for the government’s budget is the unfunded (hidden) deficit, meaning the portion of the gap between revenues and expenditures that, after considering all mobilized resources including bond issuance, cannot realistically be financed, causing the government to be unable to cover part of its expenditures by the end of 2025.  According to expert estimates based on the proposed revenue realizations, the probable unfunded deficit in the 2025 budget bill is approximately 320 trillion rials. From a macroeconomic perspective, the budget is presented to the Islamic Consultative Assembly under conditions where, according to the Central Bank, the country’s economic growth has consistently exceeded 4.5% over the past three years. However, the Central Bank reports that growth in spring 2024 was about 3.2%, and non-oil growth was 2.5%, indicating a 2.5 percentage point decrease in economic growth in spring compared to the same period last year. Based on the Parliamentary Research Center’s estimates, if the 2025 budget bill is fully realized—especially considering the projected growth in investment and oil exports—an increase of about 0.8% in economic growth with oil is expected. Regarding inflation, it is estimated that the decisions made in the 2025 budget bill will reduce the inflation decline, based on trends, by about 1.2 percentage points. Also, if the 2025 budget bill is fully implemented, no change is expected in poverty rates or the Gini coefficient. In summary, the 2025 budget bill, compared to previous budget laws, shows significant progress in key areas such as integration and realism of resources and expenditures, gradual advancement of reforms without shock therapy, growth of investment credits, and attention to government commitments and debts. However, it has shown less success in addressing issues like reducing the operational deficit, moving towards reducing government ownership, securing necessary resources for improving employee livelihoods, avoiding non-budgetary provisions within the budget bill, increasing the share of tax revenues, reducing budget dependence on oil and intergenerational resources, and implementing some provisions of the Seventh Development Plan. These issues need to be pursued to the extent possible within the capacities of budget laws during the review of the 2025 budget bill and through other corrective actions aimed at the country’s structural challenges, either through approval or implementation of permanent laws.

Abstract Capacity is defined as the ability of institutions to perform their duties and responsibilities in addressing issues, setting goals, and determining ways to achieve them sustainably. From this perspective, institutions may sometimes achieve their objectives, yet incur significant resource wastage along the way. Therefore, the theory of institutional capacity in governance looks beyond institutions as isolated entities and does not merely focus on strengthening internal resources—such as recruitment and training of human resources, securing increased financial resources, or deploying technological systems. Although the availability of these resources is essential for institutions, it is necessary to consider institutional capacity as the product of dynamic interactions among multiple levels, including networks of interactions between various organizations, the institutional environment, legal and regulatory frameworks, and environmental factors. Paying attention to these levels leads to a comprehensive and systematic viewpoint, enabling institutions to utilize their internal resources more efficiently by considering the important elements within these levels and the connections between them to achieve their intended objectives. Hence, this study, considering the complex relationships within the legislative system and the challenges in managing governance networks due to the involvement of multiple actors, reviews the foundations and frameworks of institutional capacity-building, identifies existing challenges, and offers recommendations to develop a systematic approach to the institutional capacity of the Islamic Consultative Assembly.