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continue to apply annually to stay in the scheme.
In 2016, the Iranian ​government paid out a whopping​ ​IRR137tn ($3.87bn at the unofficial rate) in cash subsidies under the programme in the first four months of the 2016/2017 Iranian year (March 21–July 21).
It was at that time that Rouhani administration officials started taking people off the list of recipients. Businesspeople earning more than $10,000 annually were among those initially targeted, along with MPs, high-ranking government officials, dentists, doctors and retired army generals on pensions exceeding a certain amount.
The severe devaluation of the Iranian rial over the past two years, by more than 50%, cut the overall subsidies bill for the government.
According to Iran’s budget for this year, one third of the government’s income, or 1,425 trillion rials ($33.9 billion), should come from oil and gas exports.
The budget was based on a forecast crude oil price of $50-$54 per barrel and a US dollar rate of 57,000 rials, meaning the Iranian economy could remain sustainable if exports came to at least 1.5 million bpd.
EU officials also estimate Iran needs to sell 1.5 million bpd to keep its economy afloat. A drop below 1 million bpd could bring hardship and economic crisis.
6.1.1​Budget dynamics - tax issues, revenues
Iran recycling revenues from petrol price hike that sparked unrest to lower income groups
Iran has taken a step forward in recycling revenues gained from the sudden petrol price hike that in November caused nationwide unrest to lower-income groups in cash-subsidy payments.
The parliamentary commission responsible for the budget drawn up for the 2020/2021 Persian calendar year (starting March 21) has approved the combining of revenue accrued from a law that retargeted subsidies and the extra income earned from the petrol price rise. It further approved an increase in the monthly cash subsidy payment paid to lower-income deciles, according to IRNA.
The cash handouts were introduced by the Ahmadinejad administration. But the Rouhani administration has repeatedly cut the payments, meaning they have become gradually become worthless to growing sections of Iranian society, especially as the rial has been hugely weakened in the face of US sanctions introduced since mid-2018.
23​ IRAN Country Report May 2020 www.intellinews.com