In recent days, Iran’s state media acknowledged some of the country’s current financial problems. However, the numbers reported by these media emphasize that Iran’s economic crisis is worsening under the fundamentalists’ corruption.
“Rising inflation has widened the social divide. As a result, the poverty rate has risen from 15% to 30%, according to Masoud Khansari, President of the Tehran Chamber of Commerce, on June 16. “Candidates rarely addressed Iran’s primary economic challenges.” Instead, candidates made some promises but did not explain how they would keep them.”
The huge liquidity increases and poor output rate in Iran are two of the most significant drivers of the country’s excessive inflation.
The government of Hassan Rouhani and Iran’s Central Bank began producing banknotes to compensate for the country’s budget deficit. As a result, liquidity increased rapidly, resulting in significant inflation and rising commodity prices.
Military institutions and organizations of the regimes, such as the Ministry of Defense and the Revolutionary Guards, were sponsored with such funds. To mask its unlawful activities and compensate for the budget deficit, the regime resorted to currency production, causing financial collapse.
“The budget for 2020 has been finalized at 5.7 trillion tomans. The budget for the coming year is 1.3 quadrillion tomans, a 140 percent increase over the budget for the previous year. Furthermore, 340 trillion have been included in this budget on the premise of generating the income, and even if we exclude this amount, we will confront an 81 percent increase in the budget in 2021 compared to 2020. As a result, with this budget, we will have a large budget deficit in 2021, whereas prior budget deficits have resulted in enhanced monetary base and liquidity,” Khansari stated in this regard.
The state-run ILNA News Agency announced on Monday that living costs in Iran have risen by 32%. The ILNA report is based on the regime’s official figures and is distant from the reality of increasing production costs.
The minimum cost of living, according to ILNA, is roughly 9 million tomans. Nonetheless, according to ILNA, “the minimum wage, including all bonuses, is around 4 million tomans.” This 4 million toman would not even cover the cost of a family’s rent and monthly transportation.”
“The minimum living cost has risen to approximately 9.1 million tomans, representing a 32.15 percent increase in living expenses in two months and a few days.
If workers’ wages could cover a portion of their living expenses in March, wages would have declined by 32.15 percent, while living expenses would have increased by more than 32 percent.
Workers’ living expenditures have risen by around 2 million and 400 thousand tomans as of today, according to ILNA, citing Faramarz Tawfiqi, Chairman of the Supreme Islamic Council’s Wage Committee.
Iran’s worsening economic crisis will have consequences for the regime.
Iranians are becoming more apathetic towards the regime and that has been reflected in the recent nationwide boycott of the regime’s sham election demonstrating, that the people only seek to overthrow the ruling dictatorship.