Financial Tribune – The parliamentary body responsible for reviewing the budget bill, the Majlis Joint Commission, has approved the pooling of next year’s revenues gained from the implementation of the Targeted Subsidies Law of 2010 and those earned from raising gasoline price since mid-November 2019.
According to Hadi Qavami, the spokesman of the commission, revenues projected to be earned from the gasoline price hike are set to stand at 310 trillion rials ($2.29 billion) in the next fiscal year (March 2020-21).
Eighty percent of these revenues will be redistributed equally among 78 million Iranians who are on the list of cash subsidy receivers as per the Targeted Subsidies Law.
Qavami said the monthly cash payments will increase to 720,000 rials ($5.3) next year, IRNA reported.
“Members of the Joint Commission have also approved that those supported by the Imam Khomeini Relief Foundation and the State Welfare Organization, around seven million people, would receive the remaining 20% of the resources. These people will receive 500,000 rials ($3.7) more than others,” he said.
The Targeted Subsidies Law of 2010 authorized the reduction of food and energy subsidies, and instead allowed the payment of 455,000 rials ($3.37) to each and every Iranian on a monthly basis. The plan has been retained so far and more than 95% of Iranians currently receive the monthly cash subsidy.
Cash transfer to people as compensation for higher gasoline prices were granted to 60 million people. They receive cash support worth a total of 24,200 billion rials ($179 million) through the so-called Livelihood Assistance Program launched on Nov. 19.