Rewritten Title: Iran’s Subsidy Reforms: A Strategic Shift Towards Targeted Social Support
Article:
In a significant move to refine its social safety net, Iran is advancing a major overhaul of its national subsidy system. The government’s focused strategy aims to redirect resources towards the most vulnerable segments of society by gradually phasing out cash subsidies for higher-income households.
Parliament Drives Implementation
The Iranian Parliament has placed a strong emphasis on accelerating this initiative. In a recent session, legislators overwhelmingly voted to refer a matter to the judiciary concerning the implementation of the budget law, underscoring their commitment to ensuring the effective and timely removal of subsidies from the top three income deciles. Parliamentary authorities have highlighted that any delay in this process could lead to the inefficient use of national resources.
A Cautious and Gradual Approach
Amid the push for swift action, voices within the parliament advocate for a measured and precise approach. Hosseinali Hajideligani, a member of the Social Commission, cautioned against a sudden, non-gradual removal of subsidies. He emphasized that a phased process, based on accurate criteria including real income and assets, is essential to prevent potential socio-economic complications. Hajideligani also called for greater precision in the income classification of households to ensure that families are not mistakenly deprived of their subsidies.
The Six Key Criteria for Eligibility
To ensure the reforms are both fair and effective, the government has established a clear and comprehensive set of six financial indicators to identify high-income households. These criteria, which signal a household’s financial capacity, include:
- Total household income
- Monthly purchase transactions
- Ownership of real estate properties
- Ownership of luxury vehicles
- International travel history
- Residence outside of Iran
Households identified as meeting these benchmarks will see their subsidies gradually phased out, with priority given to those who fulfill a larger number of the criteria. The assessment relies on data from the Iranian Welfare Platform, examining assets, bank accounts, financial turnover, and social status, rather than self-declarations.
The Ultimate Goal: Enhanced Social Justice
The core objective of this policy, as outlined in the national budget law, is to secure financial resources for an electronic goods-and-services voucher program dedicated to supporting low-income deciles and vulnerable groups. This strategic reallocation is a clear demonstration of the government’s commitment to the principles of social justice and the targeted distribution of subsidies, ensuring that state support reaches those who need it most.