Title: Iran’s New Subsidy System: Parliament and Government Unite on Electronic Voucher Rollout
A Unified Front on Subsidy Reform
In a significant move for Iran’s social welfare system, a member of the Iranian Parliament’s Social Commission has announced complete harmony between the legislative and executive branches regarding the implementation of a new electronic voucher system. Ahmad Fatemi, the MP for Babol, emphasized that the “electronic coupon” is a parliamentary resolution that the government fully supports, and its regular payment is a top priority.
Shifting from Cash to Commodities
The core of the new policy is a fundamental shift in subsidy distribution. Instead of direct cash payments, which are cited as being inflationary, the government plans to provide essential goods to citizens through this electronic platform. This system, known as the “electronic coupon,” is designed to place commodities directly in the hands of the people, aiming to stabilize the market and ensure the effective delivery of subsidized goods.
Financial Hurdles and a Commitment to the People
Acknowledging the challenges, MP Fatemi detailed that the execution of this large-scale plan requires substantial financial resources, estimated at approximately 25 billion tomans. While securing this funding is complex, he stressed that it must be secured by any means necessary. “The livelihood of the people is important to us,” he stated, underscoring the government’s commitment.
He explained that a portion of the funds, about 5 billion tomans, will be sourced from the reallocation of subsidies currently given to high-income families. The remaining 20 billion tomans are expected to be secured through budgetary reallocations, a task designated for the Plan and Budget Organization.
Ensuring Stability and Regularity
For the plan to be successful, Fatemi highlighted two critical conditions: regularity of payment and price stability. He insisted that the electronic vouchers must be distributed on a consistent schedule and that the goods provided through them must be offered at fixed, unchanging prices to build public trust and ensure the program’s effectiveness.
The Ministry of Cooperatives, Labour, and Social Welfare has been identified as the executing body for the electronic voucher scheme. Fatemi made a clear distinction, noting that while this ministry is responsible for the rollout, the primary duty of securing the necessary financial resources lies with the Plan and Budget Organization, not the Ministry of Labour.
No Room for Delay
Concluding with a firm stance, the MP asserted that there are no disagreements between the government and parliament on the implementation of this initiative. He conveyed a clear message to the executive branch, stating that the government must provide the resources for the electronic voucher system, and “no excuse is acceptable” for any delay in its funding and execution.