Iran Launches Fourth Phase of Electronic Subsidy Scheme to Support Households
In a continued effort to alleviate economic pressures on its citizens, the Iranian government has announced the implementation of the fourth phase of its Electronic Subsidy Coupon (Kala-Barg) scheme. This initiative is a cornerstone of the nation’s social welfare policy, designed to directly support low and middle-income families by facilitating their access to essential goods.
A Sustained Commitment to Social Welfare
The Kala-Barg scheme has already provided millions of households with financial assistance to purchase eleven categories of essential items in its three previous phases. Government officials have confirmed that this vital support will continue, underpinned by a newly diversified funding model aimed at ensuring the program’s sustainability and effectiveness.
Innovative and Sustainable Funding Model
A primary focus of the scheme’s rollout has been securing its financial resources. Each phase represents a significant investment. To fund this ongoing commitment, the government has identified two key revenue streams. The first involves the reallocation of cash subsidies previously directed to higher-income deciles (8th to 10th). The second introduces a novel source: utilizing customs duties from vehicles imported by Iranians residing abroad.
Under recent regulatory amendments, Iranians living overseas are permitted to import personal vehicles, with the resulting duties being channeled directly into the Kala-Barg fund. This combination of reallocated subsidies and new customs revenue forms the robust financial foundation for the program’s fourth phase.
Distribution Timeline and Allocations
According to the Minister of Cooperation, Labour, and Social Welfare, the disbursements are expected to be made on a periodic basis, potentially every three months. If this schedule is adopted, the next payment is projected for the Iranian month of Mehr 1404 (Fall 2024).
The allocation structure remains consistent with prior phases:
- Households in the first to third income deciles will receive 500,000 Tomans per person.
- Households in the fourth to seventh deciles will be allocated 350,000 Tomans per person.
Legislative Support and Oversight
The program operates within a clear legal framework established to ensure its proper execution. Mohammad Bagher Ghalibaf, the Speaker of the Islamic Consultative Assembly (Parliament), has emphasized the importance of coordinated efforts between the government and the parliament to realize the goals of the nation’s development plans.
In discussions surrounding the Seventh Development Plan, Speaker Ghalibaf highlighted the legal mandate for the Kala-Barg scheme, noting its design to help citizens cope with inflation and support family economies. He stressed the critical role of the High Council for Steering the Development Plan in coordinating agencies and removing obstacles to achieve the plan’s objectives, underscoring the clear duties assigned to both the executive and legislative bodies for implementation and oversight.