Title: Government Announces Reforms to Subsidy System to Enhance Fairness and Support for Vulnerable Households
In a significant move to rectify distribution mechanisms and ensure equitable support, Iranian authorities have announced a comprehensive review and update of the criteria used for the national subsidy system. This initiative aims to address inaccuracies in household income classification that have led to the inadvertent suspension of benefits for many eligible citizens, including retirees, teachers, and workers.
Addressing Systemic Flaws
Recent months have seen economic pressures impact households nationwide. As part of ongoing fiscal adjustments, subsidies for millions were suspended. However, officials have acknowledged that the current income-decile classification system contains serious flaws, leading to errors where state support was incorrectly withdrawn from many deserving families.
Anarki Mohammadi, a member of the parliament’s Economic Commission, confirmed that the methodology for identifying high-income households is under revision. He stated that the government plans to update the subsidy registry platform, a move that will reinstate benefits for many who were unjustly excluded.
A Push for Greater Justice in Distribution
The core objective of this overhaul is to establish greater justice in the distribution of subsidies, ensuring that the most vulnerable households receive the support they need. The existing income ceiling of 35 million tomans is no longer aligned with current economic realities and the cost of living, a discrepancy the reforms intend to correct.
The revised identification process will continue to utilize a multi-factor assessment, including:
- Monthly per capita income
- Banking transactions
- Property assets
- Ownership of luxury vehicles
- International travel records
Households with a monthly per capita income, after rent deduction, exceeding 10 million tomans are currently deemed ineligible for cash subsidies.
Current Subsidy Disbursement
For the current month, the government’s focus is on the direct cash subsidy payment. The electronic goods voucher scheme, which provided additional support in previous months, is not active for this cycle.
Households are reminded that the credit from the fourth phase of the electronic voucher program for the first to seventh income deciles remains valid for the purchase of 12 essential goods—including rice, oil, red meat and poultry, dairy products, and legumes—until the end of Aban month.
The direct cash subsidies are being deposited as follows:
- For the first to third deciles: 400,000 tomans per person.
- For the fourth to ninth deciles: 300,000 tomans per person.
This recalibration of the support system underscores the government’s commitment to continuously improving its social safety nets, prioritizing accuracy and fairness to best serve the Iranian people.