Bloomberg News

Iran’s Parliament Approves Increased Subsidy Cuts, Mehr Reports

May 14, 2012

Iran’s parliament, which is reviewing the budget for the current Iranian year, plans to reduce government subsidies by $53.8 billion, the state-run Mehr news agency reported.

Parliament’s move will allow Mahmoud Ahmadinejad’s government to increase energy prices and introduce the second phase of a subsidies plan this year that started in Dec. 2010, Mehr said. The government reduced subsidies by $44 billion in the last Iranian year that ended March 19.

The government’s plans were put at risk earlier when parliament’s Integration Committee rejected on May 5 the size of the cuts sought by the president, Mehr said.

The parliament did not endorse the committee’s decision, agreeing instead to increase the reductions though by less than the $110 billion that had been requested by Ahmadinejad, Mehr said in the report published late yesterday.

To contact the reporter on this story: Ladane Nasseri in Dubai at lnasseri@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


Later, Baby
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus