Title: Government Implements Phased Subsidy Reforms, Redirecting Support to Lower-Income Families
In a strategic move to optimize its social support system, the Iranian government has initiated the gradual implementation of a subsidy reform plan mandated by the national budget law for the current fiscal year. The policy focuses on reallocating national resources to strengthen the welfare net for the most vulnerable citizens.
A Gradual Shift in Subsidy Allocation
The core of the plan involves the phased removal of direct cash subsidies from the top three income deciles. According to the government spokesperson, this process has already commenced with the removal of one decile. The funds recovered from this measure are legally designated to finance an electronic goods-and-services voucher for the first to seventh income deciles, ensuring that state support is more precisely targeted.
Subsidy Adjustments: The Numbers So Far
Recent months have seen significant steps in this direction. Official reports indicate that in the Iranian months of Mordad and Shahrivar, cash subsidies were removed from approximately 3.066 million and 2.868 million individuals, respectively. This follows an earlier phase where subsidies for around 750,000 people were discontinued. This step-by-step approach underscores the government’s commitment to a careful and continuous execution of the budget law.
Defining the Criteria for Subsidy Eligibility
The primary criterion for identifying the higher-income households subject to subsidy removal is a monthly per capita income exceeding 10 million Tomans, after the deduction of housing rent. This benchmark, based on data from the Iranian Statistical Center, aligns with the estimated income level of the eighth decile and is being used by the Ministry of Welfare to delineate the top three income groups.
Official Channel for Queries and Appeals
For citizens who believe their subsidies have been removed in error, the government has established a formal procedure. The exclusive and official channel for filing an appeal is the “Hemayat” online system (hemayat.mcls.gov.ir). The government has clarified that in-person visits for this purpose are not effective. While general consultation is available through dedicated national phone lines, any formal appeal regarding income decile classification and subsidy removal must be submitted exclusively through the designated online portal.
