Title: Ghalibaf Announces Continuation of Monthly Subsidy Coupons for Vulnerable Families
Subsidy Program Expands to Support More Households
The third phase of Iran’s electronic subsidy coupon program, launched in July 2024, initially covered the first three income deciles. As financial resources became available, eligibility was extended to include the fourth to seventh deciles. Eligible families can now receive monthly credits to purchase 11 essential goods through designated mobile apps or USSD codes (#1463500 and #28788) at authorized stores.
Fourth Phase in Preparation with Enhanced Benefits
While the third phase continues, the Ministry of Cooperatives, Labor, and Social Welfare has announced preparations for a fourth phase. Official statements indicate this phase may include increased subsidy amounts and expanded store coverage to improve accessibility for households.
Ahmad Meydari, Minister of Cooperatives, Labor, and Social Welfare, emphasized: “The first three income deciles must always be covered by the subsidy program, even under normal economic conditions, as continuous support for these groups is an undeniable necessity.” He added that the 14th government remains committed to the initiative and, with sustainable funding, could establish it as a permanent policy for vulnerable populations.
Parliamentary Support for Subsidy Reform
Mohammad Bagher Ghalibaf, Speaker of the Islamic Consultative Assembly, highlighted the program’s importance, stating: “Rather than preferential currency allocation at the start of the supply chain, essential goods should be subsidized at the distribution stage to prevent rent-seeking.” He noted that while Parliament initially approved raising taxes on essential goods to 9% in the 2024 budget, it was reduced back to 1% at the government’s request to avoid price hikes.
Ghalibaf recently confirmed that the electronic subsidy coupons will continue monthly throughout 2024, prioritizing female-headed households. In a televised address, he clarified that the program is not limited to Ramadan or year-end but is a sustained effort to enhance public satisfaction. Distribution began two weeks prior, with households able to access credits via mobile phones or bank cards—eliminating in-person visits and easing access for low-income families.
Impact and Future Expectations
Analyses show the program has alleviated inflationary pressures on low-income households by boosting purchasing power for essentials like oil, rice, poultry, milk, and pasta. The digital distribution system has also improved subsidy transparency and reduced resource wastage.
With the success of previous phases, the fourth phase is expected to launch soon, potentially increasing monthly amounts and expanding store networks. The Welfare Ministry will soon announce precise details on eligibility and credit values.
Originally initiated under the 13th government, the subsidy program has become a key welfare tool in the 14th government, demonstrating tangible benefits despite financial constraints. All eyes are now on the fourth phase, which, if successful, could further stabilize the economic conditions of vulnerable families and mitigate inflation’s impact.
