3m More to Be Cut From Iran's Cash Subsidy List

EghtesadOnline: A notice of discontinuance of cash subsidies will be sent to three million Iranians by text message, says Minister of Cooperatives, Labor and Social Welfare Ali Rabiei.

News ID: ۷۳۹۱۲۹

09 January 2017

He added that they can object upon receiving the message and their case will be reviewed by officials.

So far, the government of President Hassan Rouhani has delisted about seven million people from among the recipients of cash payments, Eghtesad Online reported.

As part of the so-called "Cash Subsidy Plan", the administration of former president Mahmoud Ahmadinejad removed subsidies on food and energy, and instead paid 450,000 rials ($11.25 at market exchange rate) to almost all Iranians on a monthly basis, according to Financial Tribune.

However, with the government's tight budget in the light of reduced oil revenues, it has become increasingly difficult to sustain the controversial program.

In April 2016, Mohammad Reza Pour-Ebrahimi, the head of Majlis Economic Commission, announced that the government has been tasked by the parliament to remove 24 million people from the list of cash subsidy recipients and spend the saved financial resources on job creation.