Title: Government Focuses on Subsidy Evolution to Maintain Public Purchasing Power
Introduction: A Commitment to Public Welfare
In his weekly briefing, the Government Spokesman, Mr. Roustami, underscored the administration’s primary focus on refining its commodity subsidy program. The central objective of this ongoing initiative is to ensure public satisfaction and maintain the purchasing power of households across the nation, building upon similar programs that have been in development since 2013.
Learning from Past Initiatives
The Ministry of Welfare has implemented a series of targeted subsidy models to achieve its goals. An initial proposal to replace cash subsidies with commodity-based ones was welcomed by approximately 409,000 households. This was followed by an “extra subsidy” plan for lower-income deciles, which successfully increased participation to 575,000 households. As the program expanded to cover more citizens and the subsidy amount increased, participation grew to nearly one million households. This model was later succeeded by the “Fajraneh” plan, which provided essential goods worth 770,000 Tomans, with the government contributing 220,000 Tomans and households covering the remainder.
A New, Direct Approach Yields High Satisfaction
Following a comprehensive evaluation of these experiences, the current administration launched its new direct credit plan in early 2024. This streamlined approach allocates funds directly to households—500,000 Tomans for the first three income deciles and 350,000 Tomans for the next four—with no financial contribution required from the families.
The results have been significant. Public satisfaction surveys conducted by ISWA show a marked increase in approval. Public participation surged from 88% in the first phase of the new plan to 96% in the second, remaining near 95% in the subsequent phases, indicating strong public endorsement of the method.
Future Plans: A Shield Against Price Fluctuations
Mr. Roustami emphasized that a fundamental concern for senior officials, including the President and the Parliament Speaker, is to structure household credits in a way that safeguards purchasing power, especially in the face of rising commodity prices. To this end, various methods are under active review. In close coordination with the Minister of Agriculture and the Head of the Plan and Budget Organization, a finalized plan is being prepared and will be announced to the public this week.