Mahmoud Ahmadinejad, Iran’s president, is accusing legislators of violating the constitution because they refuse to trim energy subsidies in a budget bill.
Before June elections, the parliament’s move is seen as a blow to the country’s president.
The 2009-2010 budget was approved by lawmakers on Thursday, after omitting an article that would have allowed the president to cut subsidies and pass the savings to people in cash.
According to lawmakers it would have worsened inflation, which is now at 26 percent.
The changes made the bill “inapplicable” and would lead to a $17 billion deficit, said Mr Ahmadinejad in a letter to parliament speaker Ali Larijani.
On Monday, Mr Larijani rejected the criticism and said parliament was authorized to change the bill, state radio reported.