The moment came during a live appearance by Vice President Jafar Ghaempanah on IRINN, Iran’s state television news channel.
Pressed repeatedly on the economy, Ghaempanah acknowledged that a roughly 30 percent decline in oil revenues, compounded by chronic energy shortages and the continued impact of sanctions, had sharply reduced government resources and damaged livelihoods.
Since the start of President Masoud Pezeshkian’s administration, he said, falling oil income had cut into production, deepened the budget deficit and left the state with far less room to maneuver.
The interview quickly drew attention online—not only for its substance, but for what appeared to be visible strain. Ghaempanah stumbled over basic facts, briefly referring to the June conflict with Israel as the “11-day war” and seeming uncertain about its timing, while at several points losing his temper as the interviewer pressed for specifics he struggled to provide.
Budget behind closed doors
The significance of the appearance became clearer the next day, when the government presented its annual budget bill to parliament in a closed-door session from which leaks soon emerged.
According to multiple reports—some echoed by state television itself—Hamid Pourmohammadi, head of the Planning and Budget Organization, told lawmakers that the government currently has no foreign-currency resources to support the proposed budget, sparking heated exchanges with MPs.
Leaked details indicate that next year’s budget will be around five percent smaller than the current one, an unusual move for a system long accustomed to expanding nominal spending even in difficult times.
That picture sits uneasily alongside public assurances from Economy Minister Ali Madanizadeh, who has claimed the draft was prepared with a near-zero deficit.
Crisis in plain sight
For years, large portions of Iran’s budget have been directed toward ideological and propaganda bodies, as well as institutions linked to powerful security organizations, even as basic services and productive investment have suffered.
Mehdi Pazouki told the reformist Rouydad24 website that budget deficits lie at the heart of Iran’s chronic economic instability. Inflation, he argued, is not a temporary shock but the outcome of sustained mismanagement.
Pazouki urged the government to privatize state- and military-owned companies and to halt the practice of allocating oil to military bodies to sell on the state’s behalf—steps that would challenge entrenched interests.
With oil revenues shrinking, energy shortages worsening and sanctions continuing to restrict access to hard currency, the state faces mounting limits on its ability to cushion economic pain.
Ghaempanah’s faltering television appearance was less an isolated embarrassment than a revealing symptom—one that briefly aligned official rhetoric with the economic reality the system usually works to conceal.