TEHRAN, Iran — Social justice is not merely about distributing cash handouts among people, as the Iranian government has done under its subsidy reforms since 2010, but it means that authorities should ensure that every citizen fulfills his or her societal role and receives what is due from society. Even if one assumes that the defective practices in Iran — where handouts are given to most of the country's 78 million citizens — have brought about positive consequences for the vulnerable, no academic study has been conducted on the issue to confirm this assumption.

In the past couple of years, the administration of President Hassan Rouhani has been complaining that the controversial subsidy program has hurt the Iranian economy, costing the government 1.9 quadrillion rials ($54.8 billion) since its implementation. The cash payments amount to 455,000 rials ($15) per person per month. While the sum may appear insignificant, it is particularly welcomed by large families in the provinces and the working class districts of the capital, Tehran. For many members of these social classes, average monthly salaries run around 10 million rials ($330) or less, meaning the subsidy payments sometimes constitute a major portion of incomes. Many believe that despite the cash payments, a just distribution of wealth has yet to be secured. Liberal economists are urging the government to be brave enough to abandon the program, while even conservative lawmakers agree that it needs to be revised. Indeed, on Sept. 21 a group of parliament members introduced a double emergency motion to encourage the Rouhani administration to cut the cash handouts in a phased manner by the end of the next Iranian fiscal year, which ends on March 20, 2017. However, they abandoned the proposal under rising pressure from hard-liners.

The Rouhani administration and the parliament both seem to have come to the conclusion that the program is too costly to keep afloat. Yet, neither wants to face the political consequences of an actual decision on this matter. As key parliamentary elections approach, one cannot expect the government to unveil a clear-cut plan on the issue before February, when the vote is scheduled to be held. Indeed, observers say the centrist president could receive a crushing blow if he reveals a possible plan to cut cash subsidies, given the administration’s shortage of influence over the media. The state broadcaster as well as Friday prayer leaders and dozens of newspapers and websites, all run by rival groups, would likely grab the opportunity to launch attacks against the administration if it announces that a plan is being considered to cut the cash handouts. Yet, some economists still believe that the president should finally make a tough decision and face the political and social consequences.

Prominent economist Mousa Ghaninejad has made a guesstimate that despite the political limitations, the administration will halt monthly payments by the end of this fiscal year, which ends March 19 — soon after the parliamentary elections. He argues that if moderates and pro-reform candidates win the elections, the administration will do the job with more confidence. “In that case, only the poor listed by the two main charities Imam Khomeini Relief Foundation and State Welfare Organization will remain eligible to receive the handouts,” Ghaninejad told the economic weekly Tejarat-e Farda.