Subsidy reform plan saves Iran $6 bln
Azerbaijan, Baku, Nov.22 / Trend F.Milad/
Iranian Finance and Economic Affairs Minister Shamseddin Hosseini has said the country saved some $6 billion through implementing the subsidy reform plan during the past 12 months, the Fars news agency reported on Tuesday.
The subsidy reform plan, launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.
The country's economic reform plan is one of the most important undertakings in Iran's recent economic history.
The World Bank in its report in September made a rosy outlook for Iran's economy, announcing that the subsidy reform plan has reduced poverty and income disparities in the country significantly.
According to the report, preliminary estimates suggest that the government's comprehensive cash transfer program accompanying the ongoing subsidy reform has reduced poverty and regional income disparities significantly.