The government has discontinued monthly payments of cash subsidies to a further 400,000 individuals who were found to be economically well-off.
In doing so, the number of those removed from the list of cash subsidy recipients over the past two months hit 1.1 million, Mehr News Agency reported.
All those who will no longer receive such payments fall within the top three high-income deciles. Plans are to narrow down the list by 24 million by the end of the year (March 19, 2020.)
The Iranian Cabinet ratified on July 7 the implementation of Clause 14 of the Budget Law, which pertains to Targeted Subsidies Law. As per the directive signed by First Vice President Es’haq Jahangiri, related governmental bodies were tasked with identifying and removing households from the top three high-income deciles within a month of the notification.
The Targeted Subsidies Law of 2010 authorized the reduction of food and energy subsidies, and instead allowed the payment of 455,000 rials ($4) to each and every Iranian on a monthly basis. The plan has been retained, such that more than 90% of Iranians currently receive the monthly grant of cash subsidies.
"Given the economic pressures faced by low- and middle-income families, the measure [to remove cash subsidy receivers] will be carried out cautiously to reduce the margin of error in selecting households who don’t need the government’s cash subsidies," Minister of Cooperatives, Labor and Social Welfare Mohammad Shariatmadari said.
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