Economy, Domestic Economy
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Cash Subsidy Payments to Continue

Cash Subsidy Payments to ContinueCash Subsidy Payments to Continue

The government is going to continue its cash subsidy payment system to designated citizens, said Minister of Economic Affairs and Finance Ali Tayyebnia at a press conference on Saturday. However, he added that the revenues earned on the back of the removal of heavy subsidies on energy carriers, as part of the Subsidy Reform Plan, are not enough to cover the monthly cash payments. “To make up for this deficit, the government has no option but to use other resources that is, of course, constitutionally permissible,” ISNA quoted the minister as saying. Recently, Abdolreza Azizi, the head of Majlis Social Commission, said the government will stop paying cash subsidies to 15 million “rich” people as of the next Iranian year (to start March 20, 2016), unlocking 81 trillion rials ($2.2 billion at market exchange rate) for the poor.  “The move has been integrated into next year’s budget plans,” he added. Azizi’s remarks came after Minister of Cooperatives, Labor and Social Affairs Ali Rabiei announced back in December that the government had removed 2,943,000 individuals from the cash subsidy list.

 

Financialtribune.com