Iranian gov't allocates extra funds for cash payments to citizens

Business Materials 12 September 2011 17:53

Azerbaijan, Baku, Sept. 12 /Trend/

The Iranian government has transferred $15 billion into citizens' bank account in order to keep up "removing subsidies" plan, Mehr News Agency reported quoting head of Supreme Audit Court Abdolreza Rahmani Fazli as saying.

"The government borrowed $5 billion from Central Bank of Iran, while $5 billion was allotted out of public budget and $3 billion from oil revenues to pay off removing subsidies," Rahmani Fazli added.

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.

He noted that 20 to 30 percent from removing subsidies revenue, or $6.2 billion, has not been transferred to the mine and industry ministry yet.

The official in Supreme Audit Court believes government money transfer to citizen's account does not match with removing subsidies applied on energy costs.

The International Monetary Fund has recently announced Iran's revenue from implementation of removing subsidies was a total of $60 billion.

The Iranian government expected to economize $54 billion from removing subsides this solar year. Half this sum will be transferred to citizens' bank accounts to compensate subsidy removal. Thirty percent will be assigned to industry and construction sectors and 20 percent of th e sum will be transferred to government bank accounts for common expenses.

Meanwhile, the government said it transferred $21 billion to citizens' bank account only over the first six months of the year.