Title: Iran’s 2026 Budget Directive Prioritizes Targeted Subsidies for Enhanced Social Justice
In a significant move to refine its social support system, the Iranian government has announced the continuation and strategic overhaul of its subsidy program for the upcoming Persian year 1405 (2026). The directive for the national budget, officially communicated to executive bodies by President Masoud Pezeshkian, places a strong emphasis on making cash and commodity subsidies more efficient and precisely targeted.
A Commitment to Continued Support
The newly issued budget directive puts to rest any speculation about the cancellation of cash subsidies. It firmly establishes the government’s intention to not only continue these payments but to enhance their effectiveness. The core belief, as stated in the document, is the government’s duty to ensure the livelihood of all citizens, with a renewed focus on improving the efficiency of this critical policy.
The Drive for Precision and Fairness
A central pillar of the 2026 budget is the “real targeting” of social protections. To achieve this, the government is mandating a comprehensive review of the income deciles used to determine eligibility.
- Updated Data is Key: All support payments will now be based on the most current data available from the “Iranian Welfare Database.” This initiative is designed to minimize identification errors and ensure that aid reaches its intended recipients.
- Streamlining for Impact: The directive tasks government agencies with managing subsidy payments to have the greatest impact on improving the living conditions of low-income groups. A key objective is to eliminate duplication of benefits and prevent the wasteful allocation of public resources to those who do not qualify.
Redirecting Resources to Those Most in Need
As part of this recalibration, the list of subsidy recipients will be revised. Individuals who are found to have overlapping support from other government programs or who no longer meet the necessary criteria will be removed from the list. This measure is aimed at strengthening distributive justice, allowing resources to be channeled toward the groups with the most urgent needs.
Furthermore, subsidy funds are to be allocated to areas with a direct impact on essential goods, healthcare, and other critical household expenses. Executive bodies are required to present programs that increase the effectiveness of these subsidies and alleviate living cost pressures, particularly for the lower-income deciles.
A Foundation of Transparency
The budget directive also underscores the importance of informational transparency and the integration of subsidy databases. This enhanced oversight is expected to provide a clearer picture of how resources are spent and prevent any unnecessary or erroneous payments.
This refined approach to subsidies is one of six key economic policies outlined in the 2026 budget, reflecting the government’s broader commitment to balanced fiscal management and strengthening the nation’s social safety net.