Baku, Azerbaijan, Feb. 17
By Khalid Kazimov - Trend:
Head of Iran's Management and Planning Organization Mohammad Baqer Nobakht has said that the Iranian government is taking measures to stop monthly cash subsidies from being paid to rich and overseas Iranian nationals, IRNA news agency reported Feb. 17.
Withholding the subsidies of high-income households has been on agenda for a few months, but there was no necessity to break the news to the public, Nobakht said.
Pointing out that the government cares about how the money saved is going to be used, he said that 48 trillion rials (27500 rials making USD1) of the sum will be used to subsidize the healthcare sector.
He further noted that next Iranian fiscal year (starting Mar. 21), 13 trillion rials saved through the country's subsidies reform plan will go into small banking facilities as real estate mortgage.
He further added that 10 trillion rials from subsidies savings would be used to create job opportunities the next Iranian year.
Last April Iran's president, Hassan Rouhani announced that the government spends about $1.4 billion (based on then official rate of 25,500 rials per each USD) per month on the cash subsidies for citizens.
The cash subsidies impose about $392 million deficit in the budget per month for administration, he noted.
The administration of former president Mahmoud Ahmadinejad implemented the first stage of the subsidy reform plan toward the end of 2010.
The subsidy reform plan is aimed at easing pressure on state finances by cutting tens of billions of dollars from government subsidies on food and fuel. The government pays cash to citizens as compensation for increased prices by cutting subsides.
Edited by CN