Title: Government Refines Subsidy Program, Phasing Out Higher-Income Recipients
In a systematic effort to enhance the efficiency and targeting of its national subsidy program, the government is continuing its legally mandated plan to phase out cash subsidies for higher-income households. Recent data indicates a deliberate and measured approach to this significant economic reform.
A Deliberate Shift in Pace
After a period of accelerated removals in the previous months, the pace of phasing out recipients has been intentionally moderated. By the end of the seventh month of the Persian calendar year (Mehr 1404), approximately 1.5 million individuals identified as belonging to the eighth to tenth income deciles were removed from the subsidy roster. This marks a notable slowdown compared to the nearly 3 million removed monthly in the two preceding months, reflecting a more calibrated implementation strategy.
The Bigger Picture: 6 Million Removed
This recent adjustment follows a major phase of the program. During the fifth and sixth months (Mordad and Shahrivar), a cumulative total of 6 million households, identified as falling within the ninth and tenth income deciles, were excluded from receiving the subsidy. Consequently, the total number of subsidy recipients, which was announced as 46,576,331 in Mordad by the Ministry of Labour, decreased to 43,741,274 by the end of Shahrivar. The subsequent removal of a further 1,428,235 individuals in Mehr brought the current total to 42,313,039 recipients from the fourth to ninth deciles.
A Mandate Rooted in Law
This restructuring is not an ad-hoc policy but is firmly grounded in national legislation. The removal of the top three income deciles (eighth, ninth, and tenth) is explicitly stipulated in both the Budget Law for the year 1404 and the Seventh Development Plan. The government is thus legally obligated to execute this process, with oversight mechanisms in place to ensure compliance.
Enhanced Targeting with New Criteria
To ensure a more accurate assessment of a household’s financial capacity, the classification system has been refined with additional criteria. Alongside established indicators such as bank transaction turnover, vehicle ownership, and international travel, a new metric—”retail purchases”—has been introduced. This index analyzes a household’s average spending over a six-month period, providing a more nuanced and precise picture of their economic standing and minimizing potential misclassification.
Minimal Public Discontent
Despite the scale of the changes, the process has seen remarkably few formal objections. According to the latest figures from the Ministry of Labour, out of the 6 million individuals removed from the lists, only 50,000 have registered an appeal. A significant portion of these appeals are attributed to individuals whose higher bank turnover was linked to managing company funds or workplace accounts, a factor that may have inadvertently skewed their “retail purchase” index and placed them in a higher income bracket.
This ongoing refinement of the subsidy program underscores a commitment to fiscal responsibility and ensuring that state support reaches those citizens for whom it is most essential.