Economy, Domestic Economy

Burden of Cash Subsidies

Burden of Cash SubsidiesBurden of Cash Subsidies

Just as development projects in national oil and gas sectors are struggling with lack of funding, the monthly payment of 1.35 billion dollars (based on official exchange rate) for cash subsidies, consumes most of the sections’ income, said Mansour Moazami, the deputy oil minister. He added that most of the development projects in petroleum industries are facing financial difficulties due to cash payments which consume most of ministry’s monthly income. Moazami said 1.1 billion dollars (per month) of this amount is the share of the National Iranian Oil Refining and Distribution Company and 0.25 billion dollars per month is the share of National Iranian Gas Company. He called on the government to replace the cash subsidies with a more reliable and sustainable income-distribution plan.