Iranian government spokesman Ali Rabiei said on Tuesday that a recent fall in the Tehran Stock Exchange index had clear economic reasons, and that that the government had no role in the decline.

Denying that the government's disagreement over the appointment of the head of the Securities & Exchange Organization was the reason for the fall of the index, Rabiei referred to such interpretations as "false and unfounded excuses."

Since the second half of August, the Tehran Stock Exchange index, which had soared to two million units, has been rapidly falling. The index closed at 1.3 million on Tuesday, October 27.

Earlier, many experts had warned of a bubble in the Tehran Stock Exchange.

To make up for this year's budget deficit, the government planned to increase the sale of state-owned assets and companies ten-fold, also issuing more bonds.

The resources considered in this year's budget from the sale of the government's movable and immovable property is about 495 trillion rials, or approximately $11.7 billion.

Meanwhile, many reports have alleged government manipulation in the stock market index to earn more from selling state-owned property and companies.