Economy, Domestic Economy

Interim Agreement on Cutting Cash Subsidy List

Interim Agreement on Cutting Cash Subsidy ListInterim Agreement on Cutting Cash Subsidy List

The government lacks the sufficient financial resources to fund the subsidy reform plan due to reduced oil revenues in light of the slump in global oil prices, IRNA quoted senior economic advisor to the president, Masoud Nili as saying on Sunday.

“The government and the parliament will arrive on an interim agreement on the Subsidy Reform Plan as the decision to eliminate the well-to-do households from the list of subsidy receivers has been postponed until further investigations are conducted in this regard,” said the official, adding: “Minister of Cooperatives, Labor and Social Affairs, Ali Rabiee, will be announcing the details and policies related with the cash subsidies in the near future.”

The official further underlined the need for creating jobs and improving the households’ welfare conditions before achieving sustainable economic growth.

“As per the National Vision Plan’s objectives, Iran aims to assume the first rank in Asia in terms of economic, scientific, and technological development by year 2025, however the country experienced only 4.3 percent average economic growth during the Fourth Five-Year Economic Development Plan (2006-2011) and even witnessed negative economic growth between the years 2012 to 2014,” Nili said.

He further noted that if oil prices remain at $60 per barrel in the upcoming year, Iran will earn $30 billion in oil revenues, which is one fourth the figure in the Iranian calendar year 1390, which started on March 21, 2011.