Iran Refines Subsidy Program, Reallocating Funds to Lower-Income Families
Tehran – The 176th round of direct cash subsidies for the Iranian month of Mehr has been disbursed, marking a significant step in the ongoing refinement of the nation’s social support system. This latest phase sees a strategic reallocation of resources, directly impacting over 1.4 million previous recipients.
Payment Details and Demographic Shift
Official reports confirm that subsidies for the current period were deposited for the heads of 14,479,021 households, encompassing a total population of approximately 42.3 million citizens. These beneficiaries fall within income deciles 4 to 9.
A comparison with the previous month’s payments reveals a deliberate adjustment. In the 175th payment stage, subsidies were provided to 14,945,970 household heads, covering a population of around 43.7 million. This indicates that in the current phase, subsidies for 466,769 household heads—representing a population of nearly 1.43 million individuals—have been discontinued.
Policy Rationale: Targeting and Legal Mandate
This recalibration is not an ad hoc measure but a planned implementation of national policy. Authorities from the Ministry of Cooperatives, Labour, and Social Welfare have previously clarified that due to constraints in available resources, the government is legally obligated to optimize its social safety net.
The stated objective is to phase out subsidies for higher-income recipients, a move mandated by the parliament. The resources saved from this adjustment are being strategically redirected to strengthen support for the most vulnerable segments of society. This includes the expansion of commodity voucher programs specifically for the lower-income deciles, with a particular focus on deciles 1 to 3.
The move follows recent parliamentary reminders to the relevant minister, emphasizing the legislative requirement for the government to proceed with the removal of subsidies from higher-income groups, underscoring the program’s alignment with legal and parliamentary directives.