Title: Government Announces Targeted Subsidy Disbursement for Low-Income Households
Introduction
In a move to bolster economic support for its citizens, the Iranian government has disbursed a combined subsidy package for the first three income deciles. This initiative, which took effect in July 2024, is part of a broader social welfare policy designed to strengthen the purchasing power of lower-income families through a mix of direct cash transfers and electronic food subsidies.
Who Qualifies for the 900,000 Toman Support?
As officially confirmed by the Ministry of Cooperatives, Labour, and Social Welfare, the highest level of support is allocated to individuals within the first to third income deciles. Each eligible person in this group received a total of 900,000 tomans, distributed as 400,000 tomans in direct cash subsidy and 500,000 tomans in non-cash credit for the electronic goods voucher system, known as Kalaberg.
A Tiered Support Structure
The government has implemented a tiered system to ensure equitable distribution of resources, with support levels decreasing for higher income brackets. The following breakdown illustrates the allocation:
| Income Decile | Goods Voucher Credit | Cash Subsidy | Total per Person |
|---|---|---|---|
| 1st to 3rd | 500,000 Tomans | 400,000 Tomans | 900,000 Tomans |
| 4th to 7th | 350,000 Tomans | 300,000 Tomans | 650,000 Tomans |
| 8th and 9th | 0 Tomans | 300,000 Tomans | 300,000 Tomans |
| 10th (Highest) | 0 Tomans | 0 Tomans | 0 Tomans |
Key Features of the Subsidy Program
The structure of the program includes several important features:
- The 500,000-toman Kalaberg credit is designated exclusively for the purchase of essential goods—such as rice, oil, and dairy products—from authorized contracted stores. This credit is non-transferable and cannot be withdrawn as cash.
- The program’s primary objective is to directly enhance the livelihoods of low-income households and ensure their stable access to essential commodities.
Policy Analysis and Outlook
This hybrid model of providing both cash and commodity subsidies has been interpreted by some economists as a positive, though interim, step in supporting vulnerable segments of society. Analysis suggests that while the measure is effective in providing immediate relief, its long-term success is seen to be intertwined with broader economic reforms, the expansion of necessary infrastructure, and enhanced public awareness.
Conclusion
The recently implemented subsidy package demonstrates a targeted approach to social welfare. The allocation is specifically calibrated, with the most substantial support directed at the lowest income deciles and phased out entirely for the highest earners. This policy is viewed as a significant component of the government’s ongoing commitment to economic justice and support for its citizens, with recognition that its continued effectiveness will be part of a wider, evolving economic strategy.
