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Subsidy payments in cash may put budget deficit at $82 billion

Tuesday, 12 February 2013

The Chairman of Majlis Economic Committee, Arsalan Fathipour, announced that in meetings between the government and the Majlis it was decided that in carrying out second phase of the subsidy reform, 50% of the revenues generated from implementation of the law would be allocated for cash assistance; 30% will go to the industrial sector, and 20% will remain in the government treasury, but this decision is not yet final. According to him, in view of inflationary consequences of cash payments, there is an emphasis on the need for support in implementing the second phase of the law. He maintains that as long as Iran has not achieved economic stability, implementation of the law is not viable, and if the   amount paid in cash to subsidies to the public doubles, the core budget will deepen to 82 billion dollars. He also addressed the grant that will be paid to citizens for the new Persian year (March 21, 2013) and announced that 73 million Iranians will receive a grant of 70 thousand tomans each, and total grants will reach USD 2.7 billion. He further stated that this amount would come from the national development fund.

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  • Published: 6 days ago on Tuesday, 12 February 2013
  • By: Iran Daily Brief
  • Last Modified: February 12, 2013 @ 3:21 pm
  • Filed Under: Economy
  • Tagged with:
  • Source(s):
    • http://www.farsnews.com/newstext.php?nn=13911123000556

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