In this memo, we will evaluate the livelihood assistance plan and the approach of distributing coupon for the basic goods of Iranian households. Please be with Artan Press.
*** Coupon design efficiency
In the current situation of Iran’s economy, one of the fastest approaches that can be predicted to provide for the living needs of households is the issue of providing coupon and commodity subsidies to the private people of the society. This issue covers a wide section of the middle class of society. These sections have different definitions in the literature of different sciences. The middle class is considered by sociologists to be a class that is culturally inclined to the upper income classes and more inclined to the lower classes in terms of economic power and is similar to the working class.
If we want to test the effectiveness of this plan, we must first have an overview of the behavior of the middle class. The middle class in any society strongly influences the economic situation of that country so that the driving force of the economy in the supply and demand sector is in the hands of this class. By gaining power, this economic class can affect the demand for durable and non-durable consumer goods, as well as breathe new life into services and non-commodities.
The economic movements of the middle sector are very important. For example, what we saw in the Iranian stock market in the past year was the endless thirst of the middle class to enter the rich class of society through various investments and intelligent guidance of money into the economic cycle. This sector acts as the driving force behind the economy of societies because the growth of incomes of this class can quickly lead to the rapid movement of the economy.
*** Economic weakening of the middle class
In our country, in the last few years, what is almost obvious is the weakening of the economy of the middle class. If we seek to analyze and search for the causes of this bitter event in the Iranian economy, various reasons can be discussed that are beyond the scope of this discussion. But in short, a combination of factors such as US sanctions, the corona and the suspension of some businesses, and, of course, self-imposed sanctions were more important factors that weakened the economic power of the middle class.
Another issue that entered the eyes of the Iranian society and occupied practically all sections of society was the sharp drop in oil prices and the decline in demand for Iranian oil in international markets. Therefore, the conditions for providing the currency needed by the country to stabilize the economic trend were difficult.
Since domino behavior is very natural in the economy, the economic tensions created strongly affected the exchange rate and gold and essential items of society, and the middle class faced great challenges. Analysts have recently stated that the poverty line of Iranian households has reached 10 million tomans a month, which shows that the middle class is under indescribable pressure and that practical action must be taken to save this class and the poor.
*** Payment of subsidies for the supply of basic goods
According to the draft amendment to the Budget Law of 1399 and the government’s obligation to pay subsidies to provide basic goods, which after being summarized in the Program and Budget Commission, the government is obliged to provide part of the livelihood needs of the country’s households, especially low-income households. , In the second half of 1399 and on a monthly basis, to provide and pay the purchase credit subsidy to each Iranian person identified in the household livelihood plan, by depositing the credit to the cash subsidy card of the head of the household.
Accordingly, the deposit credit is intended only for the supply of essential and essential goods, and the Ministry of Industry, Mines and Trade is obliged to provide a discount for the purchase of these goods for those involved.
There is a barrier to the implementation of this parliamentary bill. The plan proposed in parliament requires the approval of the Guardian Council, and government interviews indicate inconsistencies in the provision of these facilities. Mohammad Hussein Farhangi, a member of the parliament’s presidium, said that if the authorities did not cooperate, the plan would not succeed and the Guardian Council would reject it; Because this plan has a financial burden and changes the budget. Ishaq Jahangiri also announced that the government will not be able to pay for this coupon for 60 million Iranians.
*** Government funding to pay coupons
Ali Rabiee also stated that the government’s financial resources to pay coupon for the affected and middle class are practically impossible in the current situation. In the parliament however, the deputies used the opportunity of remarks and speeches to express the problems and concerns of the society and the people. Nasrullah Pejmanfar, head of the parliament’s Article 90 commission, spoke of the problems that have arisen for many jobs with the corona outbreak.
The Islamic Consultative Assembly, in a resolution on providing coupons to low-income Iranian households, obliged the government to provide at least 60 million people a month to meet part of the living needs of the country’s households, especially low-income households from the beginning of the second half of this year. Deposit the cash subsidy card of the head of the household.
This amount is for each person in the first three deciles, including those covered by the Imam Khomeini Relief Committee, the Welfare Organization, disabled warriors and people with incomes below the minimum wage, and the amount is 120,000 Tomans, and for people in other Deciles are 60,000 tomans per month. This credit should be considered only for the supply of essential goods.
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