Even after opposition from MPs of President Mahmoud Ahmadinejad's economic policies, parliament gave approval to outline of budget for next Iranian year.
Outline of the budget was approved after 136 MPs voted in favour, 67 against and 13 abstentions.
Now parliament will analyze various sectors of expenditure and can ask Government to shift spending from one area to another.
Parliament is trying to reduce costly consumption of fuel, while Government is opposing price hike at petrol pumps.
Approval of budget bill was relatively smooth, in spite of criticism by reformist and conservative MPs of US $248 billion budget for the year starting March 21, 2007.
As oil price was decided at $33.7 per barrel, budget bill was criticised by most of the MPs.
Earlier a public statement was issued by 150 deputies to Government for reducing expenditure and dependence on oil revenue.