Bookmark and Share

Iran delays government subsidy reform again


Source: Radio Zamaneh

Iranian government stalled its controversial plan to cut government subsidies for another month although Mahmoud Ahmadinejad's first deputy had announced that the plan will take effect in September.

The cutting of the 100-billion dollar government subsidies has been cause for concern amongst Iranians as fears of sharp rise in the price of basic everyday needs looms large.

The government has announced that they will directly give social assistance to needy families in order to counter the adverse effects of this plan.

The plan had already been delayed six months due to disputes between Mahmoud Ahmadinejad's government and the parliament over the details of the project.

The failure of the government to deliver the cash benefits to eligible families has been cited as the reason for the latest delay.

Two weeks ago, Iran's Statistics Bureau announced that they are collecting new information regarding financial situation of households to establish accounts for them where they can receive government assistance.

In the meantime, director of subsidy reform has told Mehr news agency that people will not be allowed to withdraw from these accounts before energy prices increase.

While some analysts predict that the cutting of subsidies will create high inflation rates which will burden the poor, Mahmoud Ahmadinejad contends that the plan will be to the benefit of the lower classes and "end poverty in the country."

© Copyright 2010 (All Rights Reserved)