Iran's Government to Cut Subsidies for Another Four Million People

The Iranian Minister of Cooperatives, Labor, and Social Welfare announced that the government will eliminate subsidies for approximately four million more people to implement a parliamentary resolution. Ali Rabiei stated that housing, cars, income, and travel are among the criteria considered for removing subsidies from these individuals. According to Fars News Agency, he reported on Wednesday evening, August 10, during a television program, that the government intends to execute the parliamentary resolution to cut subsidies, which requires the removal of subsidies for about six million people. The Minister of Cooperatives, Labor, and Social Welfare noted that last year, 2.1 million people were removed from the subsidy list, with 80% not filing complaints, and 10% of those who did complain ceased their objections when informed of their asset holdings. Rabiei mentioned that 10% acknowledged their declared assets but cited reasons such as family members being cancer patients, students, or unemployed. Iranian officials have previously provided inconsistent statistics regarding the number of individuals removed from the subsidy list. For instance, Ali Rabiei had previously stated that subsidies for 3.2 million people were cut in 2015. His statements regarding the implementation of the parliamentary resolution to remove six million people from the subsidy list come as the Iranian Parliament had mandated on April 20 this year, during the review of the 2016 budget bill, that the government must cut subsidies for 'the top three income deciles of society,' which amounts to 24 million people, excluding families with five children. According to the parliamentary resolution, subsidies will be cut for traders, self-employed individuals, government employees, including those in municipalities, public institutions, military personnel, and retirees with annual incomes exceeding 35 million tomans. Meanwhile, Rabiei stated that housing, cars, income, and 'even travel' are among the assets considered for decisions on subsidy removal. The Minister of Cooperatives, Labor, and Social Welfare mentioned that his ministry has access to people's economic activities through 28 databases but has not 'snooped' into bank accounts. He described the final stage of asset review as 'field investigations' and noted that the ministry has 'not yet entered this stage.' Ahmad Midari, Deputy Minister of Cooperatives, Labor, and Social Welfare, had previously stated that this year, no one’s subsidy has been cut due to asset-related criteria. Cash subsidies began during the second term of Mahmoud Ahmadinejad, the former president of Iran, and despite significant criticism from officials in Hassan Rouhani's government, payments continue. Officials in Hassan Rouhani's government have repeatedly stated that over 40 trillion tomans are spent annually on subsidies, while the country's development budget is about 30 trillion tomans per year. The Iran newspaper also reported on April 20 this year that from 2010 to 2016, over 200 trillion tomans were paid to the public as subsidies, which is five times the projected dedicated revenues of the government for 2016. The Minister of Cooperatives, Labor, and Social Welfare also previously stated that since 2010, as a result of 'the burden of cash subsidy payments on development resources,' 500,000 people have lost their jobs. In this context, the Iranian Parliament finalized the cut of subsidies for 24 million people despite government opposition. '50 members of Parliament' had previously been beneficiaries of cash subsidies before their representation.