More police forces have been sent to the streets of Tehran as the government has started making large cuts on many different subsidy programs. Iran’s President remarked this reform as, “the biggest economic plan in the past 50 years.” These changes were made to save billions of dollars in public money, however this will increase food and energy prices for millions of Iranians. Iran has benefitted for a very long time on blanketed subsidies made by the government on natural gas, electricity, petrol, water and a wide variety of stable foods. Iranians expect a 400% price increase for motorists in petrol, which has been the reason for tighten security. Many critics claim that these subsidies are a huge cause of wastefulness. A report showed that one-third of bread made with subsidized flour is usually thrown out. Mr Ahmadinejad states that the poorer families will receive payouts to soften the effects of the lift on subsidies. Many of the government’s opposition in different parties state that poor handling of reforms could cause a huge increase in inflation, which includes civil unrest. Mir Hossein Mousavi says that there is a need to end ineffective subsides, but feels that the government wont uphold its policies well. Mousavi remarks that these sanction have weakened the national economy. Only the President and a select few know how much prices will rise, which has been the cause for theft on the basic needs of sugar and rice.
Source: Mohsen Asgari, BBC News, Tehran
http://www.bbc.co.uk/news/world-middle-east-11685293
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