Domestic Economy
0

Share of Production in Subsidy Reform Plan Below 1 Percent

About 30% of revenues earned from the increase in energy prices were to go to production and optimization of consumption, 20% to government for the extra expenditures that would come up in carrying out the plan and 50% to the social welfare system, includ
The total resources of the Subsidy Reform Plan stood at 2.78 quadrillion rials ($66.19 billion) during March 2010-17.The total resources of the Subsidy Reform Plan stood at 2.78 quadrillion rials ($66.19 billion) during March 2010-17.
The government is unwilling to cut cash subsidies of people, but as mandated by the budget law, it has to narrow the list of monthly payments by 24 million this year

Less than 1% of the revenues earned from the Subsidy Reform Plan were allocated to the production sector between 2010-11 and 2016-17, according to a report by Majlis Planning and Budget Commission. 
In 2010, the government of former president, Mahmoud Ahmadinejad, cut food and energy subsidies and instead paid 455,000 rials ($10.8) to each and every Iranian on a monthly basis. 
It was then announced that 30% of revenues earned from the rise in energy prices would go to production and optimization of consumption, 20% to the government for any extra expenditure that would come up in carrying out the plan and 50% to the social welfare system, including monthly cash subsidies, the Persian economic daily Donya-e-Eqtesad reported. 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com