|Majlis committee rejects increase in revenues from subsidy cuts||
TEHRAN - The Majlis Integration Committee on Saturday rejected the administration’s proposal to increase revenues from subsidy cuts, a move which could effectively block the implementation of the second stage of the subsidy reform plan in the current Iranian calendar year.
However, the committee’s decision must be endorsed by a majority of the parliament.
The administration of President Mahmoud Ahmadinejad presented the draft of the national budget bill for Iranian calendar year 1391 (started March 20) to the Majlis on February 1, in which it was proposed that the revenues from subsidy elimination savings would be increased from about $44 billion to $110 billion.
Economic experts say the Majlis may agree to raise energy prices to some extent, but far less than the administration has requested.
Reportedly, last week the administration decided to suddenly free up energy prices to complete the implementation of the subsidy reform plan this year.
The Majlis says the administration’s decision is illegal because it runs counter to the subsidy reform plan, which calls for the subsidies on fuel, electricity, and certain goods to be cut over the course of five years.
The implementation of the subsidy reform plan began in December 2010.
Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader