Iran Launches Fifth Phase of Electronic Food Stamp Program, Aims to Boost Public Satisfaction
In a significant move to support household purchasing power, the Iranian government is set to roll out the fifth phase of its Electronic Food Stamp program this week. The initiative, a key social welfare policy of the 14th administration, is designed to provide targeted subsidies for essential goods, directly addressing the economic well-being of citizens.
A Program for the People
The program’s core objective is to shield family budgets from price shocks and preserve the purchasing power of the populace. According to official statements, the primary concern of both the government and the parliament is to prevent any strain on the livelihoods of the people. The electronic food stamp system provides credit to the heads of households, allowing them to purchase 11 essential food items.
Streamlining for Effectiveness
The program’s management has been consolidated under the Ministry of Cooperatives, Labour, and Social Welfare to enhance coordination and planning. Officials have emphasized that placing resources directly with the Welfare Ministry allows for more systematic and monthly planning for the allocation of subsidies to different income deciles.
Two Scenarios for the Fifth Phase
The execution of the upcoming phase is currently being finalized, with two primary models under consideration:
- Continuation of the Credit Method: This model, which has received high public satisfaction ratings in surveys, involves depositing direct credit into the subsidy accounts of eligible households.
- A New Hybrid Model: This scenario involves coordination with the Ministry of Agriculture. If finalized, it would offer a 20-30% discount on approved goods at designated chain stores, while the standard credit method would continue at smaller retail outlets.
A final decision is expected imminently, with authorities pledging to announce the precise details by the end of the week. The guiding principle for selection will be maximizing public satisfaction, with a preference for methods that give citizens more choice and minimize direct market intervention.
Phasing Out Subsidies for Higher Income Groups
To ensure the program’s sustainability and focus on those most in need, the government is gradually removing subsidies for higher-income deciles. To date, approximately 17 million individuals have been removed from the general subsidy roster, with an additional 1 to 1.5 million people being removed from the list each month. This careful recalibration ensures that state support is directed toward the seven lower-income deciles.
The government has reaffirmed its commitment to continuing support for these seven deciles. All necessary follow-ups have been conducted to secure the required funding, and the existing infrastructure is fully prepared to disburse support as soon as resources are allocated. The overarching goal remains clear: to use available resources to provide continuous support for the people and sustain the nation’s social welfare framework.