|Majlis, administration to finalize agreement to cut cash subsidies||
TEHRAN – The Iranian parliament (Majlis) and the administration will finalize their agreement by the end of the current Iranian calendar year (March 2014) to cut cash subsidies of rich families, the Central Bank of Iran Governor Valiollah Seif has said.
“People have well understood the need [to cut the cash subsidies]. The basis for doing the job has been prepared in the society,” the Mehr News Agency quoted Seif as saying on Saturday.
On October 9, the Iranian parliament (Majlis) will study a proposal made by the administration to cut cash subsidies of the three groups of the society with the highest income.
MP Ja’far Qaderi told IRNA that the Majlis will study the proposal with the next two weeks.
Head of Parliamentary Economic Committee Gholamreza Mesbahi Moqaddam has said the subsidy reform plan put into place by the government has created $13 billion more in liquidity than was anticipated.
The subsidy reform plan pays 45,500 rials (about $18 based on the U.S. dollar official exchange rate of 24,800 rials) to Iranians, eliminating subsidies for fuels and some commodities.
MP Ahmad Tavakkoli has criticized the current method of cash subsidy payments, saying that paying subsidies in cash to people is carried out just in Iran. Paying cash subsidies to all groups of people with different incomes should be revised given that the administration is facing budget deficit.
Liquidity in Iran has reached 500 trillion rials (about $201 billion), Iranian Finance and Economic Affairs Minister Ali Tayyebnia said on Saturday.
He also said that the inflation rate for the 12-month period ended the sixth calendar month of Shahrivar (September 22) hit 40 percent.
The Central Bank of Iran has reported that liquidity has grown over five folds since seven years ago.
Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader