Expediency Council secretary calls for revision of subsidy reform plan

October 12, 2010 - 0:0

TEHRAN – Expediency Council Secretary Mohsen Rezaii has said that Iran’s subsidy reform plan should be revised in view of the recent UN sanctions resolution.

“The subsidy reform plan was drafted before the imposition of the (new round of) sanctions against Iran, so the sanctions should be taken into consideration and the plan should be revised,” Rezaii told the Mehr News Agency on Monday.
Rezaii, an economist who ran unsuccessfully for president in the 2009 presidential election, also said he believes the savings from subsidy cuts should be allocated to create jobs and stimulate domestic production.
The government plans to eliminate the subsidies on fuel, energy, and certain goods over the course of five years. The administration had previously announced that the implementation of the subsidy reform plan would begin in the second half of the Iranian calendar month of Mehr (September 23 to October 22).
Economic experts have described the plan as an overhaul of the national economy, but at the same time have expressed concern over the potential inflationary repercussions of the elimination of subsidies and the subsequent effect on the people’s standard of living. -