Budget Secured for Subsidy Program, Parliamentarian Outlines Legal Framework
In a detailed television address, Mohsen Zanganeh, a member of the Iranian Parliament’s Plan and Budget Commission, provided clarity on the legal and financial status of the nation’s cash subsidy and commodity basket programs, emphasizing the government’s legal obligations to provide for eligible citizens.
A Legal Roadmap for Support
Zanganeh stated that the core of the current discussions lies in established law. The national budget for the current Iranian year (1404) has allocated a substantial 320 thousand billion Tomans for cash subsidies and the commodity basket program. Crucially, the budget mandates the government to reallocate a minimum of 40 thousand billion Tomans into support packages for the people.
“According to legal documents,” Zanganeh stressed, “the government is obliged to allocate a minimum of 40 thousand billion Tomans from specified sources in the form of a commodity basket to the people. The goal of this action is to reduce part of the inflation in the area of essential goods.”
Addressing Implementation and Resource Allocation
The parliamentarian revealed that from late February to mid-September, four stages of the commodity basket, valued at over 102 thousand billion Tomans, have been distributed. He clarified that the legal framework for the current year requires the distribution of at least 40 thousand billion Tomans in commodity baskets, for which the budget has been secured.
A key mechanism for funding this initiative, as Zanganeh explained, is the reallocation of resources. The law stipulates that by phasing out subsidies for the top three higher-income deciles, significant monthly resources are freed up. These funds are legally designated to be redirected to support the lower-income deciles through programs like the commodity basket.
Parliament’s Oversight Focus: Adherence to the Law
Zanganeh pinpointed the primary issue not as the method of delivery, but as the fulfillment of the government’s legal commitment to reallocate these specific resources.
“The fundamental problem is that the government has not acted on its commitment based on the budget law, and for this reason, it does not have sufficient resources,” he stated. “As parliament, we believe the government must provide the resources, and then the method of payment can be carried out in any way it deems appropriate.”
He concluded that the main challenge is one of decision-making and adherence to the ratified budget. If the government implements the law correctly, sufficient resources will be available for the support programs, ensuring continued assistance for the Iranian people as mandated by the legal framework.