Subsidized prices in Iran cause budget deficits and inflation

Business Materials 22 September 2021 14:26 (UTC +04:00)

BAKU, Azerbaijan, Sept. 22

By Elnur Baghishov – Trend:

Subsidized prices in Iran have been causing Iranian governments at different times to face budget deficits and inflation, Iranian Deputy Minister of Economic Affairs and Finance Hadi Ghavami told IRIB, Trend reports.

The Iranian government pays cash subsidies to 78 million people every month. The deputy minister added that the share of each Iranian citizen in this subsidy is 450,000 rials (about $10.7) per day.

Thus, the monthly subsidy per citizen is 13.5 million rials (about $321), however, according to Ghavami, of those $321, each citizen receives about $10.7 in cash, while the remaining subsidy is provided non-cash (gasoline, gas, water, electricity, etc.),” he said.

Ghavami noted that for example, a group of citizens used gasoline as an option.

"One groups used 'gasoline subsidy' worth about 280 trillion rials (about $6.7 billion). However, another group of citizens used a gasoline subsidy worth 16.5 trillion rials (about $393 million)," he explained.


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