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Iranian Parliament increase government’s revenues from subsidy cuts

Iran Materials 14 May 2012 06:48 (UTC +04:00)
The Majlis (Iranian Parliament) approved on Sunday an increase in the government’s revenues from subsidy cuts from about $44 billion to $53.8 billion for the current Iranian calendar year which started on March 20, MNA reported.
Iranian Parliament increase government’s revenues from subsidy cuts

The Majlis (Iranian Parliament) approved on Sunday an increase in the government's revenues from subsidy cuts from about $44 billion to $53.8 billion for the current Iranian calendar year which started on March 20, MNA reported.

The parliament's decision will allow the government to raise energy prices and begin the implementation of the second stage of the subsidy reform plan.

The Majlis Integration Committee had previously rejected the administration's proposal to increase revenues from subsidy cuts, a move which could effectively block the implementation of the second stage of the subsidy reform plan in the current year.

However, the Majlis did not endorse the committee's decision and increased the government's revenues.

The administration of President Mahmoud Ahmadinejad presented the draft of the national budget bill for the current year to the Majlis on February 1, in which it was proposed that the revenues from subsidy elimination savings would be increased from about $44 billion to $110 billion.

The administration had decided to suddenly free up energy prices to complete the implementation of the subsidy reform plan this year.

But the Majlis said that the administration's decision had run counter to the subsidy reform plan, which calls for the subsidies on fuel, electricity, and certain goods to be cut over the course of five years.

The implementation of the subsidy reform plan began in December 2010.




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