Economy and Financial Affairs

Article 43: In order to secure the economic independence of society, to uproot poverty and deprivation, to fulfill the needs of human beings in the process of growth, while also maintaining liberty, the economy of the Islamic Republic of Iran will be based on the following criteria:

1. providing the essential needs: housing, food, clothing, health, medical care, education, and the necessary provisions for the starting of a family for all;
2. providing the circumstances and opportunities for employment for everyone with the prospect of achieving full employment; making means of labor available to everyone who can work but does not have the means; this can be done through cooperatives, interest-free loans, or any other legitimate method that would not lead to the concentration and circulation of wealth in the hands of specific individuals or groups, or turn the government into a large and absolute employer. The application of these measures must take place with regard to the necessary factors; these steps must be taken with due regard for the necessities that determine public planning of the national economy at each stage of growth;
3. organizing the country’s economic plan in such a way that the form, content, and the working hours would leave each person, aside from his job-related occupations, sufficient time to invest in his own spiritual, political and social growth, to actively participate in the country’s leadership, and to cultivate his skills and sense of creativity;
4. respect for an individual’s freedom to choose an occupation; refraining from forcing an individual to take a specific job; preventing the exploitation of another’s labor;
5. banning the causing of damage to others, monopoly, hoarding, usury, and other invalid and forbidden interactions;
6. banning extravagance and squandering in all areas related to the economy, such as consumption, investment, production, distribution, and services;
7. using science and technology, and training skilled individuals to meet the needs of the nation for advancement and development of the country’s economy;
8. preventing the economic dominance of foreigners in the national economy;
9. emphasis on increasing agricultural, livestock, and industrial productions that fulfill general needs and take the country to a stage of self-sufficiency, and emancipate it from dependence.

Article 44: The economic system of the Islamic Republic of Iran is based on three sectors: state, cooperative, and private, and will be based on disciplined and correct planning. The state sector includes all the national industries, foreign trade, major mines, banking, insurance, energy sources, dams and large water irrigation networks, radio and television, post, telegraph and telephone, aviation, navigation, roads, railroads, and others which are publicly owned and under the state’s control.

The cooperative sector will include corporations and cooperative institutions of production and distribution that are established in accordance with Islamic criteria in cities and villages.

The private sector is comprised of that sector of agriculture, animal husbandry, industry, trade, and services that complement the state and cooperative economic activities. The law of the Islamic Republic protects ownership in these three sectors as long as it agrees with the other principles described in this chapter; and it must not surpass the limits set by Islamic law. Such ownership must induce development and growth in the country’s economy; and not cause any social harm. The details of the regulations, areas, and boundaries of the three sectors will be determined by law. Article 45: The following are under the control of the Islamic government: wastelands and public wealth, abandoned or unclaimed land of deceased owners, mines, seas, lakes, rivers, and other public bodies of water, mountains, valleys, forests, marshlands, natural prairies, unrestricted pastures, inheritance without any heir, wealth without any identified owner, and public wealth that is confiscated from the usurpers. The Islamic government will treat these in accordance with the public interest. The law shall determine the detail and manner of utilization of each of them. Article 46: Everyone is the owner of the income from his own legitimate business and labor. No one can, under the pretext of his own ownership, deprive another person from the opportunity to work. Article 47: Private ownership through legitimate means is respected. The law shall determine its criteria. Article 48: There should be no discrimination among various provinces and regions in the country in extracting natural resources and using national incomes, and in allocating economic activities to them. Each area according to its own needs and aptitude for growth should have access to the necessary capital and provisions. Article 49: The government is responsible for confiscating illegitimate wealth resulting from usury, usurpation, bribery, embezzlement, theft, gamble, misuse of Islamic government endowments, misuse of government contracts and transactions, uncultivated lands and others belonging to the public, houses of ill repute, and other illegitimate sources. The government shall pass on this wealth to the rightful owner and in case such an owner is not identified it must be deposited in the public treasury. This ruling must be carried out by the government after investigation, research, and proof through Islamic law. Article 50: In the Islamic Republic it is considered a public duty to preserve the environment where the present and the future generations may have an improved social life. Consequently, any activity, economic or other, that leads to the pollution of the environment or its irreparable damage will be forbidden. Article 51: No form of taxation may be instituted except in accordance with law. Instances of tax exemption and reduction are determined according to law. Article 52: The annual budget of the country is prepared by the government, as deter- mined by law, and submitted for review and ratification to the Islamic Consultative Assembly. Any changes in the budgetary figures are also subject to the provisions set by law. 15 Article 53: All the sums received by the government are deposited in the central treasury accounts. And all the payments, within the limits of allocated credits, shall be reimbursed in accordance with law. Article 54: The National Accounting Bureau is directly under the supervision of the Islamic Consultative Assembly. The law shall determine the organization and management of its affairs in Tehran and capitals of the provinces. Article 55: In the manner instituted by law, the Accounting Bureau monitors or audits all the accounts of the ministries, organizations, state companies, and other bureaus that use the general budget of the country in some way. This is to ensure that no expenditure exceeds its approved allocation and that all sums are spent for their proper purpose. In accordance with the law, the Accounting Bureau will collect all relevant bills, records, accounts, and documents, and will submit a report on the annual budget differential, accompanied by its own comments to the Islamic Consultative Assembly. This report must be accessible to the public.