Iran’s Guardian Council approves subsidy bill

Iran’s Guardian Council has approved a targeted subsidies legislation aimed at gradually cutting the government’s energy and food financial supports.

The body’s spokesman Abbas-Ali Kadkhodaei said the bill complies with Islamic laws and the Iranian constitution.

Iran’s Parliament (Majlis) ratified the bill proposed by the government after making some amendments.

The ‘Economic Reform Plan’ has won an approval from the 243-seat Parliament, with 134 lawmakers allowing the government to establish a reform subsidy organization to enforce the plan.

The legislation will result in the distribution of a portion of the recovered revenue among low-income groups.

The government of President Mahmoud Ahmadinejad believes it will save up to 30 percent of the annual budget by lifting subsidies on fuel and some food items.