Title: Iran Expands Essential Goods Subsidy Program, Awaits Next Phase Funding
Article:
In a move to bolster household economic resilience, the Iranian government has expanded the range of essential goods available through its Electronic Voucher (Kala-Barg) scheme, a central pillar of its social support policy.
Subsidy Program Enhanced with New Goods
Marjan Dabiri, the official spokesperson for the Electronic Voucher scheme, announced that aquatic products have been added to the list of twelve essential subsidized items. This expansion, part of the program’s fourth phase initiated in the Iranian month of Mehr, introduces four new products: turkey and quail in the poultry category, and fish and shrimp in the seafood category.
These new options are available for purchase by households in the first to seventh income deciles, broadening the nutritional choices for eligible families.
High Uptake and Funding Structure
The program has seen significant public engagement. Official statistics cited by Dabiri indicate that by the morning of October 6, over 16 million household heads had fully utilized their fourth-phase credit. The non-cash subsidy amount is set at 500,000 Tomans per person for the first to third income deciles and 350,000 Tomans for the fourth to seventh deciles, with the government allocating the necessary funds for each phase.
Political Support and Financial Challenges
The program, which has completed four phases since its inception last year, enjoys high-level political backing. Parliament Speaker Mohammad Bagher Ghalibaf has emphasized the necessity of continuing the program, describing it as a vital measure for stabilizing the prices of essential commodities and preserving the purchasing power of Iranian households.
However, the primary challenge facing the government is securing the financial resources for the scheme’s continuation. The main hurdle is the slow pace of reallocating funds by removing cash subsidies from high-income earners. While approximately 6 million individuals have been removed from the cash subsidy list, over 10 million remain, and the funds freed up so far are insufficient to fully cover the costs for lower-income deciles.
Future of the Program
The timeline for the launch of the fifth phase remains unconfirmed, with some speculation pointing to the month of Azar (November-December). A final decision from the government is pending.
Dabiri also clarified the validity period for the vouchers, noting that the credit for the fourth phase remains valid until the end of Aban (mid-November). The program currently operates through a network of approximately 230,000 contracted chain and conventional stores across the country, providing wide access for beneficiaries to purchase their allotted essential goods.
