Title: Government Assures Stability for Essential Goods with New Electronic Subsidy Scheme
In a move aimed at protecting household budgets, a senior Iranian economic official has announced that a new electronic subsidy system for essential goods will be implemented from the start of the Persian month of Aban (mid-October), with assurances that it will shield citizens from inflationary pressures.
A Shield Against Inflation
Ahmad Anarki Mohammadi, a member of the Iranian Parliament’s Economic Commission, directly addressed public concerns about rising costs. He emphasized that the electronic subsidy is specifically designed for lower-income families and will effectively prevent inflation from impacting the price of essential items.
“The expectation in society is for price increases, but the subsidy has a defined purpose,” Mohammadi stated. “It is for the more vulnerable and low-income families, and therefore, inflation cannot be applied to those goods.”
Cross-Government Coordination for Swift Implementation
Highlighting a unified government approach, the MP revealed that a decision was made in a meeting of the heads of the three branches of government to expedite the rollout. “What the government intends, and the parliament is assisting with… is that from the beginning of Aban, the subsidy will be implemented and prices will remain stable,” he said.
Subsidized Goods to Remain Affordable
Mohammadi provided key details on the economic mechanics behind the plan, explaining that the current stockpile of essential goods was purchased at the official exchange rate of 28,500 tomans. He expressed confidence that this would prevent price hikes.
“For the difference in the exchange rate that we have, I think the government will help the people and pay this amount so that inflation does not significantly affect essential goods,” he added, underscoring the state’s commitment to absorbing extra costs to ensure market stability.
Direct Support: The Most Effective Method
The parliamentarian also advocated for the efficiency of direct financial support to citizens, comparing it to existing bread subsidies. He noted that while the mechanism is complex, direct payments ensure aid reaches the people directly, bypassing potential inefficiencies.
“The time between purchase and reaching the people has a very high cost,” Mohammadi explained. “If we give this directly to the people, it is the best thing that can be done.”
Foundation for the Future
Addressing the reason for the scheme’s initial delay, Mohammadi cited necessary groundwork. “The reason for the postponement was that the mechanism was not ready, the government did not have precise statistics, and overall, the infrastructure was not prepared.”
The initial basket is set to include 13 essential items as identified by the Ministry of Agriculture. Mohammadi confirmed this list is based on the needs of the people and will be subject to future review and adjustment.