Iranian government pays subsidies by Central Bank’s funds

Iran Materials 13 December 2011 16:37 (UTC +04:00)

Azerbaijan, Baku, Dec. 13/ Trend M. Moezzi

Iranian President Mahmoud Ahmadinejad's government has illegally received $5 billion in cash, or Tankhah, (Tankhah is the government credit for financing current and immediate expenses of government institutions and officials) from the central bank to pay cash subsidies to Iranian citizens, a parliamentary commission announced today reporting the kahbaronline website.

In a public session on Tuesday Dec. 13, the Special Commission for Economic Reform listed the government's violations in breaking the subsidies law. In addition to the cash assistance from the Central Bank, the commission cited other instances of legal violations. They included the government's failure to apply the law over a five-year period; its failure to supply parliament and the Supreme Audit Court with a six-month progress report and its failure to earmark 30 per cent of its income to the production sector

Another report issued by parliament addressed the conflict between some of the Subsidies Organisation's articles of association and the law.

Article 90 Commission's report said the Speaker of the Majlis (Iran's parliament) had notified the government about the conflict in the law and the subsidy organisation's charter but none of his concerns were addressed when a new charter was adopted. The report urged Mr Ahmadinejad's government to bring the subsidy organisation into compliance with the law.

Iran 's parliament reported earlier that Ahmadinejad's government faces a $15.6 billion deficit to pay citizens, Iranian daily Shahrgh reported.

The Iranian government pays each citizen $45 a month as a compensation for a part of commodities and energy subsides, which were cut in December 2010.

The special parliamentary commission for economic reform reported the government faces nearly a $16 billion in deficit from its budget in current solar year (started on March20,2011) to pay cash to citizens.