Rewritten Title: Policy in Focus: Phased Subsidy Reforms Spark National Dialogue
Article:
A significant shift in Iran’s long-standing subsidy program is underway, moving the policy to the forefront of national discourse. Recent months have seen an acceleration in the removal of cash subsidies from higher-income households, a process mandated by law and central to the government’s economic planning.
A Measured Approach to Reform
While the pace of these removals has recently slowed, the process continues systematically. Official data reveals that a total of 6 million individuals were removed from the subsidy recipient list during the Iranian months of Mordad and Shahrivar. This brought the total number of recipients down from approximately 46.6 million to 43.7 million.
The following month saw a more targeted approach, with around 1.5 million people from the eighth to tenth income deciles being removed. This figure is notably lower than the nearly 3 million removed monthly in the preceding period, indicating a more calibrated implementation of the policy.
The Legal Mandate Driving Change
This reform is not an ad-hoc measure but a legally-driven process. The removal of subsidies for the top three income deciles (eighth, ninth, and tenth) is explicitly stipulated in both the Budget Law for the current year and the country’s Seventh Development Plan. The government is thus legally obligated to execute this policy, with reports indicating that any delay in its implementation is treated with significant seriousness.
Refining the System: New Criteria for Assessment
To ensure the accurate targeting of subsidies, the government has refined the criteria used for income classification. Alongside established indicators like bank account turnover, vehicle ownership, and foreign travel, a new metric has been introduced: “retail purchases.” This index analyzes a household’s average spending over a six-month period to provide a more nuanced and precise picture of its financial capacity.
A Platform for Grievance
The reform process includes a mechanism for appeal. According to the Ministry of Labour, out of the 6 million individuals removed from the list, only 50,000 have officially registered complaints. A significant portion of these appeals reportedly stem from individuals whose high bank turnover was mistakenly linked to their personal wealth, when it was actually related to managing company or workplace funds, thereby skewing the new “retail purchase” index.
This ongoing recalibration of the subsidy system represents a key political and economic initiative, balancing fiscal responsibility with targeted social support as it continues to evolve.