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Government: Over Seven Million More Will No Longer Receive Cash Subsidies

Jan 30, 2026 January 30, 2026 2 min read 📰 Radio Farda
📋 Key Takeaway

The Iranian government announced that over seven million individuals will lose their cash subsidies due to a parliamentary decision to cut subsidies for the wealthiest segments of society. This move has sparked opposition from the Rouhani administration, which argues that it will negatively impact those who rely on these subsidies. The decision reflects ongoing tensions between the government and parliament regarding economic policies.

🔍 Quick Context Guide
💡 Bottom Line: The subsidy cuts highlight significant economic tensions within Iran, with potential implications for social stability.

👥 Key Players

Mohammad Baqer Nobakht MENTIONED
Spokesperson for the Iranian government
"Represents the government's stance on economic policies and the impact of subsidy removals."
Hassan Rouhani MENTIONED
President of Iran
"His administration opposes the subsidy cuts, highlighting the government's internal divisions on economic issues."
Islamic Consultative Assembly MENTIONED
Iran's parliament
"Responsible for approving the removal of subsidies, reflecting legislative power over economic policy."

📰 What Happened

The Iranian government announced that over seven million individuals will lose cash subsidies due to a parliamentary decision to cut subsidies for the wealthiest segments of society. This decision has sparked opposition from the Rouhani administration, which argues it will harm those who rely on these funds.

  • The Assembly's decision affects over 24 million individuals, according to some estimates.
  • Cash subsidies have been provided since 1389 to mitigate the impact of subsidy removals on essential goods.

💡 Why It Matters

🇮🇷 For Iran: The removal of subsidies could exacerbate economic hardship for millions, leading to increased public discontent.
🌍 Regional: Economic instability in Iran may have ripple effects on neighboring countries, particularly in terms of migration and trade.
🌐 International: Western nations may view this as a sign of Iran's internal struggles, potentially influencing diplomatic relations.

📚 Background

Since 1389, Iran has provided cash subsidies to support its citizens amid economic challenges, but recent decisions to cut these subsidies reflect a shift in fiscal policy aimed at wealthier individuals.

Iran's economic sanctions Subsidy reforms in Iran
📡 Source: STATE MEDIA
📊 Confidence: 70%
The information comes from official government sources, which may present a biased view favoring the government's perspective.

Mohammad Baqer Nobakht, the spokesperson for the Iranian government, announced that with the removal of cash subsidies for the top three income deciles by the Islamic Consultative Assembly, approximately seven million more individuals will be removed from the list of subsidy recipients. During a public session on Tuesday, April 24, he also expressed the government of Hassan Rouhani's opposition to the removal of subsidies for these individuals. On the same day, the Islamic Consultative Assembly approved the removal of cash subsidies for the top three economic deciles in the budget bill for the year 1395, stating that the number of affected individuals exceeds 24 million. However, according to the Iranian Students' News Agency (ISNA), the spokesperson for Hassan Rouhani's government provided statistics indicating that this figure is incorrect, and with the Assembly's decision, seven million and 56 thousand and 52 individuals will be deprived of cash subsidies. Nobakht reiterated the government's opposition to this issue, stating that 'the government is determined to provide subsidies to individuals for whom cash subsidies are significant in their lives, and this Assembly decision raises concerns for these groups.' According to the Assembly's resolution, traders, members of parliament, judges, university faculty members, and government employees earning over 35 million tomans annually will be deprived of cash subsidies. Members of the board of directors and inspectors of state-owned companies and Iranians residing abroad will also no longer be able to receive cash subsidies. Since 1389, the Iranian government has been providing monthly cash subsidies of 45,500 tomans to tens of millions of Iranians in response to the removal of subsidies for many goods and services.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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