Economy, Domestic Economy

Majlis Passes Amendment to Subsidy Reforms

Majlis Passes Amendment to Subsidy ReformsMajlis Passes Amendment to Subsidy Reforms

The parliament on Tuesday decided to lower the cap for the total cash subsidies paid by the government to Iranian households from 42 trillion rials ($1.5 billion at official exchange rate) anticipated in the proposed budget bill for the upcoming Iranian year (starting March 21) to 39 trillion rials ($1.4 billion).

In a session to review the revenues anticipated in the budget bill for the next fiscal year, the parliament authorized the government to use the financial resources from the increase in the prices of commodities and services, in accordance with the Subsidy Reform Plan passed on January 5, 2010, towards the payment of cash and non-cash subsidies to needy households as well as to support the manufacturing sector.

The parliament also compelled the government to stop the payment of cash subsidies to affluent households, in accordance to Note 21 of the Subsidy Reform Act. The by-law for implementing this note is to be prepared by the Management and Planning Organization of Iran (MPO) in cooperation with the relevant ministries within the next three months, IRNA reported.

Parliament members also approved allocation of 48 trillion rials ($1.7 billion) towards implementing Article 34 of the Fifth Five Year Economic Development Plan which calls for fair allocation of public resources towards developing and providing public health services.

The MPs also earmarked 13 trillion rials ($470 million) from the government revenues to provide incentives for various purposes, such as housing for the newly married couples, villagers and nomads, rehabilitation of old houses, housing development on the outskirt of big cities and Mehr Housing Scheme.

It was also decided to allocate 10% of the revenues from implementing clause 4 of the Subsidy Reform Act towards rural empowerment and providing vocational training to the villagers with the aim of creating sustainable employment. Some 40 trillion rials ($1.4 billion) was also dedicated to developing career-oriented programs for university graduates.