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Iranian administration to cut 5.5M people from receiving subsidies

Business Materials 6 March 2015 13:25 (UTC +04:00)

Baku, Azerbaijan, Mar. 6

By Fatih Karimov - Trend:

The Iranian administration will cut 5.5 million people from receiving subsidies.

As the parliament voted to reduce the budget for paying cash subsidies from about $15 billion to $14 billion the administration is inevitable to cut cash subsidies to 5.5 million people, Iran's ISNA news agency reported on March 6.

The Iranian parliament has tasked the government of Hassan Rouhani to cut cash subsidies to wealthy and well-paid Iranian citizens in the next Iranian calendar year which starts on March 21.

The legislators made the decision in an open session on March 2 while reviewing the country's national budget for the next year.

The subsidy reform plan pays 455,000 rials, or about $16 based on the U.S. dollar official exchange rate. It was put into place during the former president Mahmoud Ahmadinejad's government in late 2010.

It has enabled the government to begin to gradually reduce energy subsidies over the course of five years, with low-income families compensated with direct cash handouts.

Management and Planning Organization director Mohammad Baqer Nobakht stated that the Rouhani administration would abide by the parliament's decision and would fully implement its ratifications.

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