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Iran president hails targeted subsidy plan

Business Materials 31 January 2011 20:39
Iran's President Mahmoud Ahmadinejad praises the implementation of the targeted subsidy plan, which aims to introduce reform in the country's economy
Iran president hails targeted subsidy plan

Iran's President Mahmoud Ahmadinejad praises the implementation of the targeted subsidy plan, which aims to introduce reform in the country's economy Press TV reported


In a meeting with governors across the country on Monday, Ahmadinejad said the subsidy elimination plan was a major step that entailed major benefits.

"The targeted subsidy plan is still in its first phase and we should reach the point, which leads to the modification of society's economic thought and behavior," Ahmadinejad was quoted as saying by the presidential website.

The targeted subsidy plan, which was launched in December, aims to gradually remove all subsidies over a five-year period and instead give families cash handouts as compensation.

The plan eliminates subsidies on gasoline, natural gas, electricity and food and is considered to be one of the most important economic undertakings in Iran's modern history.

Ahmadinejad praised Iranian governors for the appropriate implementation of the plan throughout the country.

"The accurate implementation of this plan will strengthen solidarity and national determination in society," he said.

"We must continue the implementation of the targeted subsidy plan with the same strength [we have until now] so that we can reach a stage in which the method and approaches to energy consumption are completely altered in all sectors," Ahmadinejad added.

The targeted subsidy plan is in line with recommendations from global financial organizations, which advise Iran rid itself of a heavily subsidized economy in order to remedy the country's economic problems.

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