Azerbaijan, Baku, Oct.21/ Trend F.Karimov/
On Sunday, the budget and planning committee of the Iranian parliament (Majlis) approved cutting cash subsidies to rich families, the Fars News Agency reported.
Committee member Ja'far Qaderi, said the group is in favour of cutting cash subsidies to three groups of families with the highest income out of a total of 10 in the country.
On Saturday, the Mehr News Agency quoted Central Bank of Iran Governor Valiollah Seif as saying that the Majlis and the administration have agreed to finalize cutting cash subsidies of some high-income Iranian families by the end of the current fiscal year (March 2014.
Iranian people have really understood the need to cut the cash subsidies, he said, adding that the goal of an 'economy without oil' has been realised in the country.
On October 13, the website of the Iranian parliament (Majlis) quoted MP Abbas Rajaee as saying that more than 30 per cent of cash subsidies which are paid to the Iranian people should be cut.
Through cutting cash subsidies of the high-income strata of society, the problem of a budget deficit can be resolved, he added.
Paying cash subsidies to people is poisonous for the national economy, he said. Cutting subsidies of all but villagers and pensioners and those who are under the auspices of welfare organisations will not be a problem, he explained.
Meanwhile, the Fars News Agency quoted Mohammad Baqer Nobakht, the presidential advisor for planning affairs, as saying that the administration is facing a bill of 10 trillion rials, about $400 million based on the US dollar exchange rate of 24,800 rials, to pay the cash subsidies this month.
Each month, 35 trillion rials, about $1.4 billion, is paid as cash subsidies to 76 million Iranians. This issue is the cause of a number of problems, he said. In fact, the wealthy do not need financial assistance from the administration, he noted.
The Majlis will study a proposal made by the administration to cut cash subsidies of the three groups of the society with the highest income, IRNA reported.
MP Ja'far Qaderi told IRNA that the Majlis will study the proposal within the next two weeks.
Head of the Parliamentary Economic Committee Gholamreza Mesbahi Moqaddam has said the subsidy reform plan put into place by the government has created $13 billion more in liquidity than was anticipated.
The subsidy reform plan pays 45,500 rials, about $18 based on the U.S. dollar official exchange rate of 24,800 rials to Iranians, eliminating subsidies for fuels and some commodities.
MP Ahmad Tavakkoli has criticised the current method of cash subsidy payments, saying that paying subsidies in cash to people is carried out just in Iran. Paying cash subsidies to all groups of people with different incomes should be revised given that the administration is facing a budget deficit.