Title: Landmark Presidential Directive Paves Way for Major Overhaul of Iran’s Electronic Subsidy System
In a significant move aimed at bolstering economic resilience and social welfare, President Masoud Pezeshkian has issued a directive to accelerate a comprehensive reform of Iran’s Electronic Voucher (Kalaabargh) program. This initiative, a cornerstone of the government’s support for lower-income families, is poised for a transformative shift in its implementation and impact, with a new model expected to be fully operational by the Iranian month of Aban.
A New Chapter for Social Support
The presidential order focuses on creating a “major transformation” in how the vital subsistence aid is distributed and utilized by citizens. President Pezeshkian has consistently emphasized the necessity of robust livelihood support for lower-income deciles and has called for the full execution of the Electronic Voucher distribution law. His directive underscores two critical pillars: ensuring the provision of stable and sufficient financial resources for the program’s continuity, and guaranteeing the stability of essential goods prices for beneficiary families.
Key Structural Reforms in the New Model
The new Electronic Voucher model, which is being finalized in coordination between the government and the parliament, introduces several pivotal structural reforms designed to enhance efficiency and target support more effectively:
- Shift in Support Mechanism: The subsidy will be transferred directly to the end-consumer, rather than being allocated to producers or inputs, ensuring aid reaches its intended recipients.
- Focus on Lower-Income Deciles: Proposals are under discussion to redirect subsidies by potentially excluding the top three high-income deciles, thereby channeling more resources towards strengthening support for those most in need.
- Increased and Stabilized Funding: Securing adequate financial resources to maintain and potentially increase the value of the vouchers has been a key presidential mandate.
- Expanded Basket of Goods: The number of essential items covered by the program will be increased from 11 to 15, broadening the scope of support for household necessities.
Implementation and Strategic Goals
The Minister of Cooperatives, Labour, and Social Welfare has announced that the new Electronic Voucher scheme is highly likely to be finalized and enter its executive phase in Aban. The ultimate objective of this overhaul is to amplify the program’s effectiveness in supporting household livelihoods, transforming it into a powerful tool for safeguarding vulnerable segments of the population against economic fluctuations. This strategic enhancement is being pursued under the direct order and serious follow-up of the President.