Skip to main content

Why Rouhani won't halt costly cash handouts anytime soon

Iranian President Hassan Rouhani is unlikely to discontinue the monthly cash handouts paid to most Iranians any time soon, despite the payouts' steep costs.
Iran's President Hassan Rouhani attends a meeting during the Asia Cooperation Dialogue (ACD) summit at the Foreign Ministry in Bangkok, Thailand, October 10, 2016. REUTERS/Athit Perawongmetha - RTSRK1N
Read in 

Iran kick-started a subsidy reform plan in December 2010 that was originally drafted to be implemented in three phases over five years. Given the change of government in 2013 and irregularities in the implementation of the original plan by the previous administration of President Mahmoud Ahmadinejad (2005-13), the second phase was only initiated in April 2014.

This article looks at the incumbent administration of President Hassan Rouhani’s potential options for how to wind down the current program, which was supposed to involve the removal of blanket subsidies and instead direct payment of cash handouts to vulnerable social classes.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.