[94545] Uncertainty regarding subsidy updates in Iran: The government admits to a budget shortage
[94545] Uncertainty regarding subsidy updates in Iran: The government admits to a budget shortage
Senior Iranian government officials admit that it is not possible to update the 'Kala-barg' (food coupon) amounts in accordance with inflation rates due to a lack of financial resources.
Uncertainty regarding subsidy updates in Iran: The government admits to a budget shortage
The issue of updating food subsidies (Kala-barg) in Iran is causing controversy, as government officials admit that the economic capacity to assist families is limited. The Deputy Minister of Welfare stated in reports brought by Akhbar-e Fouri and Akharin Khabar that despite the real need to update subsidies in the face of soaring inflation, a "lack of budgetary sources" does not allow for a full increase that matches the rise in prices of basic commodities.
On the other hand, Iran International, a media outlet identified with critical positions toward the regime, highlights a gap between the promises of President Masoud Pezeshkian and the reality on the ground. While Pezeshkian declared that subsidies would be updated, Minister of Economy Ali Madani-Zadeh clarified that funding depends on oil revenues. Iran International notes that for many families, the cost of basic food needs is already equal to the minimum wage, making the Kala-barg aid have only a limited impact.
On the operational level, the Ministry of Welfare announced that at this stage the removal of eligibility for socio-economic classes (deciles) from the Kala-barg program has been canceled, and that updates will focus on the weaker layers. However, government sources noted that some groups might only receive a modest update of 20-30%, as reported by Khorasan Online.
For citizens who reported being disconnected from the program, the Ministry of Welfare has established regulated appeal procedures. According to Akharin Khabar, citizens can apply via the "Hemayat" portal (hemayat.ir), the "Simin" system, or the 6369 hotline. The Ministry of Welfare emphasized that "the main test for receiving the Kala-barg is permanent residency in Iran and proper registration of family details." It should be emphasized that any new approval in the system will grant eligibility only from the current month onwards, without retroactivity.