Iran: Top 3 Deciles to Be Cut From Cash Subsidy List

EghtesadOnline: The Iranian Parliament is determined to work in conjunction with the government to remove top three high-income deciles of Iranian households from the list of cash subsidy recipients in the budget law of the next fiscal year (March 2018-19), the head of Majlis Economic Commission said.

News ID: ۷۴۴۳۲۶

05 November 2017

"Had the monthly grant of cash subsidies to these deciles been discontinued two years ago, 120 trillion rials ($3 billion) would have been added to government revenues and development budget every year," IRNA also quoted Mohammad Reza Pour-Ebrahimi as saying.

In April 2016, the parliament tasked the government with removing 24 million people from the list of cash subsidy recipients and spend the saved financial resources on job creation.

But, according to Financial Tribune, the first administration of President Hassan Rouhani failed to rise to the occasion, fearing its possible political consequences. Nonetheless, the government tried to restrict the number of cash subsidy recipients gradually.

According to Government Spokesman Mohammad Baqer Nobakht, a total of 4,853,386 people have been removed from the list of cash subsidy recipients as of January 20.

The income ceilings of those who have been removed and those they plan to remove have not been clearly stated.

As part of the “Subsidy Reform Plan”, the administration of former president, Mahmoud Ahmadinejad, removed subsidies on food and energy, and instead paid 450,000 rials ($11.9) to almost all Iranians on a monthly basis.