Iran's new budget allocates $60 billion for subsidies, settles oil price at $80 per barrel and fixes the rate of the US dollar at 1,050 tuman, Mehr News Agency reported quoting Deputy Head of the Strategic Planning and Control Organization affiliated to the Presidential Office Rahim Mambini.
On Sunday, Iranian President Mahmoud Ahmadinejad presented to the Iranian parliament preliminary draft new annual budget (the year in Iran starts on March 21).
The new budget totals $539 billion, or by 46 percent more than last year. The government's policy to reduce subsidies contributed to the increase in budget revenues.
The subsidy cuts plan -- encompassing key consumer goods such as gasoline, natural gas, and food -- is said to be one of the most important undertakings in Iran's recent economic history.
Every family member receives USD $80 in cash subsidies for a two-month period.
Officials say energy subsidies have cost the Iranian government around 100 billion dollars a year.