Iran's President: Compensation for removed subsidies may triple (UPDATE)

Business Materials 7 September 2011 15:42

Azerbaijan, Baku, Sept. 7 /Trend/

The government may triple amount of money paid to citizens instead of removed subsidies, Mehr News Agency quoted Iranian president Mahmoud Ahmadinejad as saying.

The Iranian government pays each citizen $45 a month as a compensation for a part of commodities and energy subsides cut in December 2010.

In early August, the Iranian government transferred $23 billion into citizen's bank accounts to retract subsidies during the past eight months.

Iranian government expected to economize 540,000 billion rials ($51 billion) from removing subsides this Iranian calendar year (started on March 21). 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.