Iran Expands Social Welfare: New Food Packages and Increased Subsidies from November
In a significant move to bolster economic justice and support low-income families, the Iranian government is set to launch the fifth phase of its Electronic Coupon (Kala-Barg) scheme this November. The initiative, a cornerstone of the nation’s social welfare policy, is designed to mitigate the impact of inflation and guarantee access to essential goods for millions of citizens.
Targeted Support and Increased Funding
A key development in this new phase is the strategic reallocation of resources to ensure aid reaches those most in need. Following the successful implementation of four phases in the current Iranian year (1404), cash subsidies for the three highest income deciles (8, 9, and 10) will be discontinued. The funds saved from this measure will be channeled to strengthen support for the first to seventh income deciles.
As announced by Mohammad-Bagher Ghalibaf, the Speaker of the Islamic Consultative Assembly (Parliament), the subsidy for the month of Mehr was disbursed as a cash payment. However, starting in Aban (November), payments will transition to a hybrid model, combining both cash transfers and a curated basket of goods. The total resources allocated for each phase of this national program are approximately 25 thousand billion Tomans, with a portion being sourced from the National Development Fund.
Enhanced Food Basket and New Benefits
The fifth phase introduces substantial qualitative improvements to the program:
- Expanded Product Range: The basket of goods is being expanded from 11 to 15 items. New additions are set to include a greater variety of protein sources, such as turkey, quail, fish, and shrimp.
- Higher-Value Items: Lower-priority goods are being replaced with more nutritious and valuable food staples, including a stronger focus on dairy products and other essential groceries.
- Increased Credit: While the exact figures are yet to be officially confirmed, it is anticipated that the monthly credit per person will be maintained or increased, with the lower income deciles (1-3) potentially receiving 500,000 Tomans and deciles 4-7 receiving 350,000 Tomans.
Streamlined Access for Citizens
The monthly credit will be automatically charged to eligible households, who can then make purchases from partnered retail chains—such as Digikala, Ofogh Koorosh, and SnapMarket—without any out-of-pocket expense. The deadline for utilizing the credits from the fourth phase is the end of Aban, with over 14 million households having already benefited from the scheme.
For citizens to check their credit balance once the fifth phase is active, the government has provided several mobile-friendly methods, including a dedicated application, a USSD code, and a chatbot on the Bale messaging platform.
A Unified National Effort
Commenting on the rollout, a member of the parliament emphasized that the new coupon scheme is a strategic measure to counter price inflation and ensure the stable supply of 12 to 23 essential commodities at reasonable prices. He stated that the government, parliament, and judiciary have reached a consensus on the implementation, and the positive effects on people’s livelihoods are expected to be felt by the end of Aban.
This enhanced social welfare program, with its focus on livelihood justice, is poised to significantly strengthen the purchasing power of lower-income demographics, reflecting a continued national commitment to economic stability and public welfare. Citizens are advised to refer only to the official announcements from the Ministry of Cooperatives, Labour, and Social Welfare for accurate information.