Iran pays $23 billion to remove subsidies
Azerbaijan, Baku, August 3 /Trend/
The Iranian government transferred $23 billion into citizen's bank accounts in order to retract subsidies during the past eight months, the Fars News Agency reported.
However MPs criticized the government for the subsidies retraction plan, saying that it fails to draw revenues in the production sector and transfers all the revenues from removing subsides to people's accounts.
Iranian government cut a part of subsides for commodities and energy products in December 2010.
Iranian government expected to economize 540,000 billion rials ($51 billion) from removing subsides this solar year. Half of this figure will be transferred to citizens' bank accounts to compensate subsidy cuts. Thirty percent will be assigned to industry and construction sectors, and 20 percent will be transferred to government bank accounts for common expenses.