Title: Iran’s Subsidy System Undergoes Strategic Overhaul: New Phase of Direct Payments and Upcoming Food Stamps Reform
In a significant move to refine its social safety net, the Iranian government has executed the latest round of its targeted subsidy payments for the month of Mehr, while simultaneously preparing for a major structural reform of its non-cash food subsidy program set for next month.
Timely Disbursement of Direct Cash Subsidies
The Subsidy Targeting Organization has confirmed the successful distribution of the 176th round of direct cash subsidies. Adhering to the established economic decile classification system, payments were made on a scheduled basis.
- Low-Income Households: Families in the first to third income deciles, identified as the most vulnerable, received their subsidies on the 25th of Mehr.
- Middle-Income Households: Households classified within the fourth to ninth deciles, representing the middle-class strata, are scheduled to receive their payments on the 30th of Mehr.
Officials confirmed that the subsidy amount for eligible individuals has remained consistent, ensuring stability for recipients.
Transition and Reform in the Food Stamps Program
While cash payments proceed as planned, a period of transition surrounds the non-cash “Electronic Coupon” or food subsidy for Mehr. This uncertainty stems from a planned, comprehensive overhaul of the system, signaling a strategic shift in the nation’s welfare policies.
Ahmad Reza Rostami, Head of the Iranian Information and Welfare Center, officially confirmed that a new, reformed food subsidy scheme will be launched in the upcoming month of Aban. He described this as a milestone in supportive policies, designed to more effectively elevate the living standards of lower-income deciles and optimize the use of national financial resources.
Phasing Out Subsidies for Higher Earners
A cornerstone of this structural reform is the planned phase-out of subsidies for higher-income brackets. Rostami emphasized that, in line with the ratified national budget for the current year, cash subsidies for the eighth, ninth, and tenth income deciles will be completely removed.
The significant financial resources freed by this measure will be directly reallocated to fortify the new, targeted support programs and the enhanced electronic food stamps, ensuring that aid is concentrated on those most in need. This process of reassessing and removing higher-income recipients from the subsidy roster has been ongoing throughout the year and is expected to continue.
A More Effective and Targeted Support System
Parliamentary members have echoed the necessity for these reforms, stressing that non-cash support must be adapted to the country’s current economic realities. High inflation and rising living costs have highlighted the need to increase the real value of the food subsidies.
Ahmad Anaraki Mohammadi, a member of the Parliament’s Economic Commission, announced that the government and legislature are collaborating on a more effective and practical approach. The new system will focus on greater efficiency and tangible support, including revising the basket of subsidized goods to feature items with higher nutritional value.
This strategic restructuring of Iran’s subsidy framework, financed by the reallocation of resources from higher-income deciles, aims to create a more resilient and targeted system to address economic and livelihood challenges effectively.