Iran’s Minister of Economy Shamsoldin Hosseini today told reporters in Tehran that direct cash subsidies to 65 million Iranians during the coming Iranian calendar year of 1390 will remain at least $44 per month, the same level as the cash payouts in the past four months. The payouts are part of the program of ending government subsidies of energy and food products.
Friday, March 4, 2011
Government Will Continue Cash Payments to People – Minister of Economy
Subscribe to:
Post Comments (Atom)
4 comments:
I have had contacts within Iran that said the initial subsidy payment has not been followed on by additional monthly payments. Does anyone know if this is true?
There was the initial payment that included payout for two months (around $80 per person, deposited to the bank account of the head of family.) Similar payment was being made for a two-month period, and should be done by now. This for a total of four months since the program started.
That basically means that the goverment spends over $2.8 billions monthly on direct cash handouts. Iran's monthly currecy income ($80 billions annual income from oil + $20 billions non oil) is around $8 billions so as a rough estimate the direct handouts is around 34% of the currency earnings (currecy earnings as opposed to total government revenues). Despite these handouts according to the head of Iran's Statistics Center, Adel Azar, about 40 million Iranians live in poverty including 10 million who live in absolute poverty line and some 30 million under relative poverty line.
Fugures published by Central Bank of Iran in 2008 (http://www.middle-east-online.com/english/?id=27234) defines poverty line as "If an urban family of four makes less than four millions rials (around 400 dollars) a month then the family is under poverty line"
This is in a country that is the third or fourth largest oil exporter and has the world's second biggest gas reserves after Russa. By the sound of it this is a total mis- management of the resources. So when some claim that billions are being invested in Iran I wonder where the money is invested and who benefits from it. On another ironic twist the same source backups the claim that stock market has grown by 75% in 2010. I guess these people either live in a fantasy world or assume that readers are so gullible that they believe their nonsense.
Thank you Nader.
Clearly there has been mis-management of funds. NIOC has been bled of funding as it does not receive revenues direct but rather receives a budget from the central government. But comparing it to NNPC's Nigeria they are doing quite well. And while Iran does have some incredible gas resources, sanctions have hampered their ability to monetize the gas. Just look at the development of South Pars/North field. Iran is more than 10 years behind Qatar, and with only one non-Iranian firm involved (China's CNPC)it will be tough to get all the phases of South Pars ever off the ground.
Post a Comment