Iran's MPs dismayed as govt. moves to start second phase of subsidy cut

TEHRAN, March 27 (MNA) – Three key parliamentarians have reacted sharply at the government for depositing extra cash into people’s accounts in attempt to start the second phase of the subsidy cut. Currently, citizens receive a monthly payment of 450,000 rial cash subsidy. On March 18 an extra 280,000 was put into accounts. However, the money still cannot be withdrawn by recipients. Officially 12,260 rial is traded for one dollar. According to the parliamentary approval the administration is not allowed to start the second phase of the subsidy cut in the first two months of the current Iranian year which started on March 20. Elyas Naderan, a trained economist who sits on the Majlis Economic Committee, said the putting of extra cash into people’s accounts was “illegal”. Naderan told the Mehr News Agency that the government has “imagined” that through such a move it can put the Majlis in a fait accompli but the Majlis Economic Committee will decide about the issue. He said an expert meeting that was held to evaluate the pros and cons of the second phase of the targeted subsidies the administration failed to determine the sources of direct cash payment in the second phase. Naderan added the parliament’s failure to deal seriously with law violation has emboldened the administration. MP Ahmad Tavakoli who is the chairman of the Majlis Research Center also said he was “shocked” to hear that more subsidy cash has been put into people’s accounts. Gholamreza Mesbahi Moqaddam said this is a “clear violation of law” by the government and said the government was facing a budget deficit in the first phase of the subsidy reform plan and it is not clear what has been the source of the extra cash subsidy. Mesbahi Moqaddam, a cleric lawmaker trained in economy, said the current year’s national budget has not been ratified yet and consequently the rate of cash subsidy in the next phase is not clear. He added there is “no logical reason for this hasty move.” The director of the organization for targeted subsidies, Behrouz Moradi, has said the payment does not mean an immediate start of the second phase of the subsidy cut.