Iran's vice president and Planning and Budget Organization (PBO) chief Farhad Rahbar stepped down in November 2006 after a policy clash with President Mahmoud Ahmadinejad over plans to shift budget management from Tehran to provincial authorities.
Ahmadinejad had ordered that responsibility for provincial budget planning be transferred to local officials, arguing that centralized decision-making was driving migration out of the regions. The move revived a long-discussed but never-enacted decentralization agenda dating back to before the 1979 Islamic Revolution.
Rahbar had urged the president to pause and study the plan's risks before proceeding. His departure reportedly triggered further resignations inside the PBO, including two deputy heads who doubted that provincial bodies could serve the country's broader national interests.
Ahmadinejad named former deputy energy minister Amir-Mansur Borqei, 49, as Rahbar's replacement, calling on him to pursue structural reforms aimed at developing underserved regions and advancing social equity.
The federalism push comes as Ahmadinejad faces mounting criticism for failing to deliver on economic promises made during his 2005 election campaign, alongside pressure over foreign and nuclear policy.
Historical summary. TurkishPress restated this wire report, first published in November 2006, in its own words.