Iran nearly doubles subsidies paid for basic food

Business Materials 9 March 2013 15:18 (UTC +04:00)

Azerbaijan, Baku, Mar.9/ Trend G.Mehdi/

Iran has nearly doubled the money which is to be paid as subsidies to staple foods and bread in the next Iranian calendar year to $11 billion, ISNA reported.

The next Iranian calendar year starts on March 21.

This year's budget for paying subsidies was about $6 billion.

First-Vice President Mohammad-Reza Rahimi said that under the current severe economic sanctions against the country, the administration is committed to support low-income strata of the society.

On January 14, MP Abdolkarim Hashemi told the Fars News Agency that the Iranian administration is facing problem in providing money for paying cash subsidies to the public.

In such a situation, the second phase of the subsidy reform plan could not be implemented, he added.

"For the time being, the government is providing necessary money out of sources other than freeing up prices based on the subsidy reform plan," he noted.

The subsidy reform plan pays out $37 to Iranians while eliminating subsidies for fuels and some commodities.