Analysis of the proposal of the Islamic Consultative Assembly regarding the protection of vulnerable groups in the form of credit cards

An examination of the cost items of low-income people in the society shows that the increase in the price of food products, which has a higher share than high-income people, has put a lot of pressure on the vulnerable groups. So that in the period from March 2018 to September 2020, pasta, first-class foreign rice and legumes have increased in price by more than 100%. Teas, sugars, Iranian rice, eggs, sugars and dairy products have also risen in price by 60 to 91 percent. On the other hand, due to the lack of compensation for the decline in purchasing power through wage increases, households have inevitably reduced their per capita consumption. Accordingly, the Program and Budget Commission of the Islamic Consultative Assembly has obliged the government to compensate part of their needs by paying a subsidy for the purchase of basic goods by charging a credit card.

In the framework of this plan, 120,000 Tomans will be paid monthly to the low-income people of the society, who are 20 million. Also, a monthly subsidy of 60,000 Tomans should be paid to middle-income people, who are 40 million.

Calculations show that a credit of 30,000 billion tomans is needed. Given the government's budget deficit, a sustainable source of funding is crucial. The financing capacities intended for this project cannot cover the cost of this project. Therefore, the government budget deficit will be intensified with the implementation of this plan.

To implement this plan, the Islamic Consultative Assembly must provide sustainable resources for it so as not to aggravate the government's budget deficit.


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