Taadol newspaper reported that the Iranian Parliament Committee for planning, budget and calculations allowed the Government to cut 110 thousand billion IRR ($3billion) from the Subsidy Reform Plan for the next Iranian fiscal year, 1397. This reduction will eliminate nearly 33 million people who has received a monthly payment of 480 thousand IRR (13.2 USD). The Subsidy Reform Plan Organisation says that during the current fiscal year (i.e. from 21 March 2017) 600,000 new subscribers (newly born less those who died) have been added to the list. Considering this, nearly 95.2% of the total population regularly receives the monthly payment from the Government. This is while, the project was supposed to cover only low-income households. The total payment annually requires 410 thousand billion IRR ($11.3billion)
Subsidy Reform Plan, launched in 2010, was supposed to re-distribute the hidden subsidies in the energy sector of Iran. However, due to the malfunctioned realization, not only it did not create new financial resources for the energy sector but by paying directly 99% of the population resulted to budget deficit.
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