Volume. 12228

Richest quintile in Iran receives subsidies 5 times more than poorest quintile
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c_330_235_16777215_0___images_stories_edim_02_br2(275).jpgTEHRAN – A new paper released by the International Monetary Fund (IMF) shows that in countries like Iran, Egypt, Jordan, and Lebanon, the poorest 20 percent of the population receives between only 1 and 8 percent of the total spending on gasoline subsidies, while the richest 20 percent receives between 40 and 86 percent.
One of the authors of the study elaborated that the stated objective of subsidies is to make certain products such as fuels or food affordable to the population, especially the most vulnerable. However, this form of social protection is, in fact, biased against the poor who end up receiving only a small fraction of the subsidy benefits, Younes Zouhar said. 
For this reason, generalized subsidies do not necessarily lead to improvements in social indicators, Zouhar added.

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