Title: Iran Implements New Phase of Targeted Subsidy Program to Support Low-Income Households
In a significant move to bolster economic support for its citizens, the Iranian government has rolled out the latest phase of its comprehensive subsidy reform program. This initiative, designed to enhance the purchasing power of lower-income families, replaces direct cash payments with an electronic voucher system for essential goods.
A Shift to Smart Subsidies
The new program marks a strategic pivot towards a more efficient and targeted welfare model. Instead of universal cash transfers, support is now provided as a designated credit for the purchase of basic necessities. This approach aims to ensure that aid directly translates into meeting fundamental household needs, optimizing the use of state resources.
Refining the Recipient List
A key component of this policy is the ongoing and meticulous process of refining the list of subsidy recipients. Government authorities have emphasized their commitment to removing high-income households from the subsidy registry. To date, cash subsidies for over two million households have been discontinued.
A transparent appeals process remains active, allowing those who believe they were wrongly removed to register their cases. Officials note that between 5 to 8 percent of appeals are typically approved after review, with subsidies reinstated, demonstrating the system’s built-in checks and balances.
Phased Implementation and Credit Allocations
The electronic voucher scheme is being implemented in phases across the country’s provinces, with a primary focus on the seven lowest income deciles. The allocated monthly credits are as follows:
- Deciles 1 to 3 (Most Vulnerable): 500,000 Tomans per person.
- Deciles 4 to 7 (Lower-Middle Income): 350,000 Tomans per person.
This credit is electronically deposited into the accounts of household heads.
Structured Spending and National Reach
To ensure the aid fulfills its intended purpose, the voucher credit is restricted to the purchase of 13 essential food items. This basket includes staples such as milk, cheese, yogurt, eggs, various meats, liquid oil, pasta, rice, sugar, and legumes.
A robust national network of over 260,000 contracted retail stores has been established to facilitate the program. Furthermore, a dedicated software application allows families to manage their transactions, check their balance, and locate the nearest participating store.
Policy Coordination for Market Stability
In parallel with the rollout, the government and the parliament are engaged in continuous coordination to safeguard the program’s success. Joint sessions, involving the Plan and Budget Organization, are focused on developing mechanisms to control prices and prevent market volatility.
Two primary scenarios are under discussion to preserve the real value of the vouchers against economic fluctuations. The goal is to finalize and implement a new model by the next Iranian calendar month that effectively stabilizes the value of the household food basket.
This large-scale electronic voucher system represents a transformative step in Iran’s subsidy architecture. Its core objectives remain the targeted support of vulnerable segments of society and the efficient, transparent management of public funds.