Title: Fourth Phase of Subsidy Vouchers Announced – Key Details and Policy Shifts
Subsidy Disbursement: Two-Tier System for August 2025
The Iranian government has initiated the fourth phase of cash subsidy deposits for eligible households in August 2025 (Mordad 1404), following a structured two-stage schedule:
Low-Income Households (Deciles 1–3)
- A 400,000 tomans per person subsidy was deposited on August 25, 2025, with withdrawals available from midnight.
Middle-Income Households (Deciles 4–9)
- These households will receive a 300,000 tomans per person subsidy on August 31, 2025, maintaining the same amount since Spring 2023.
Electronic Voucher Program Extended Amid Uncertainty
The third phase of the electronic commodity voucher program remains active until August 31, 2025, allowing households to redeem credits at partnered stores. However, no official announcement has been made regarding a fourth phase, raising concerns among low-income families reliant on these vouchers for essential goods.
Parliament Mandates Subsidy Reallocation
In a significant policy shift, the Islamic Consultative Assembly has directed the government to redirect subsidies from higher-income deciles (8–9) to the three lowest deciles, aiming to prioritize equitable welfare distribution. While this could reshape subsidy structures, implementation details—including timelines and fund allocation—remain unclear.
Calls for Expanded Support and Transparency
Ali Babaei Karnameh, head of the Parliament’s Social Commission, emphasized the need for broader voucher coverage, arguing:
- At least 7 deciles should receive commodity vouchers, given economic disparities.
- Current income classifications may inaccurately reflect household needs due to data gaps (e.g., unregistered property assets).
- The voucher system stimulates economic circulation, benefiting local businesses and tax revenues.
Hybrid Payment Model Proposed
To ensure uninterrupted support, officials advocate a dual cash-credit system:
- If liquidity shortages arise, vouchers should be issued on credit, backed by government guarantees for later reimbursement.
- Funding requires 300 trillion tomans, which authorities assert is feasible through budget coordination and banking support.
Focus on Food Security and Social Welfare
The program’s expansion aims to include 15 essential items, from staples to school clothing, reinforcing food security while addressing multi-dimensional poverty.
Conclusion: Balancing Immediate Relief and Structural Reform
As subsidy policies evolve, the government faces dual pressures: delivering immediate aid to vulnerable groups while refining long-term welfare frameworks. The coming months will test the efficacy of these adjustments in stabilizing household economies.
(Note: All figures and policies align with official announcements as of August 2025.)
