Over 60 million Iranians to receive cash assistance

The Iranian administration and the parliament have decided to pay cash assistance to 60 million Iranians on the verge of the new Iranian calendar year.

Based on the decision, around one million rials will be paid to every individual. Accordingly, some 52 trillion rials (about $4.2 billion) will be drawn out the National Development Fund. The money will be deposited to banking accounts of breadwinners of the families by February 28.

On January 14, MP Abdolkarim Hashemi told the Fars News Agency that the Iranian administration is facing problem in providing money for paying cash subsidies to the public.

In such a situation, the second phase of the subsidy reform plan could not be implemented, he added.

“For the time being, the government is providing necessary money out of sources other than freeing up prices based on the subsidy reform plan,” he noted.

The administration’s revenues from freeing up prices according to the plan were less than the cash payments, he noted.

The subsidy reform plan pays out $37 to Iranians while eliminating subsidies for fuels and some commodities.

Nearly 74.5 million Iranians receive cash subsidies. The plan started in December 2010. It allows the government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.