Title: Iran’s Electronic Subsidy Scheme: Anticipating the Fourth Phase
Subtitle: Government Support Program Awaits Funding and Schedule Finalization
The timeline for the rollout of the fourth phase of Iran’s Electronic Subsidy Scheme is contingent upon its payment frequency. If approved for monthly disbursement, the phase is projected to launch in the Iranian month of Shahrivar (late August/September). Should the decision favor quarterly payments, the next phase is more likely to commence in the following month of Mehr (starting September 23rd). Official confirmation, however, awaits the crucial step of funding allocation for this phase.
Official Perspective on Payment Frequency
Ahmad Meydari, the Minister of Cooperation, Labour, and Social Welfare, recently addressed the program’s future. He stated, “The President’s view is that we should be able to pay this subsidy on a monthly or quarterly basis.” Highlighting the scale of the initiative, Meydari added, “Over the past eight months, the subsidy has been paid three times in the country, with the credit for each payment being 25 trillion tomans. This represents growth compared to the previous four years, though it is insufficient given the unprecedented inflation.”
A Record of Recent Implementation
The government has successfully executed three previous phases of the scheme. These were rolled out in Esfand 1403 (February/March 2024), Farvardin 1404 (March/April 2024), and Tir 1404 (June/July 2024), demonstrating a consistent commitment to the program.
Core Objectives of the Program
The Electronic Subsidy Scheme is a central component of Iran’s social welfare policy, designed to mitigate the impact of inflation on vulnerable segments of society and support household livelihoods. The program provides designated credit directly into the accounts of eligible citizens, which is specifically allocated for the purchase of eleven essential goods items.
Structured Support Based on Income
The subsidy amounts are structured to provide targeted assistance. For the first to third income deciles (the lowest earners), the support is set at 500,000 tomans per person. For the fourth to seventh deciles, the amount is 350,000 tomans per person. This tiered approach ensures that support is directed where it is needed most, aligning with the program’s goals of economic justice and social stability.