A budgetary measure in Iran

With the possibility of gasoline sanctions on the way, why put gasoline on deck to get massively more expensive for the people, with the loss of subsidies? Harry’s place spots something:

And here’s the latest reality check for Andy Newman and other “leftists” who are willing to cut the wretched Tehran regime miles of slack because of its alleged sympathy and assistance for economically-struggling Iranians. Press TV reports:

Iran’s Parliament on Tuesday ratified President Mahmoud Ahmadinejad’s economic bill aimed at gradually cutting energy and food subsidies.

The ‘Economic Reform Plan’ won an approval from the 243-seated Parliament, with 134 lawmakers allowing the government to establish a reform subsidy organization to enforce the plan.

The Supreme Iranian Audit Court, a state body charged with supervising “financial operations and activities” of organizations which benefit from the state budget, will monitor the organization and submit reports on its performance twice a year.

If approved by the supervisory body, the Guardian Council, the legislation will result in the distribution of a portion of the recovered revenue among low income groups.

President Ahmadinejad believes his government will save up to 30 percent of its annual budget by cutting back on subsidies on gasoline and other refined products, natural gas, electricity, water, food, health and education.

Now the bit about distributing some of the recovered revenue among low income groups look like a cover for what is in effect a massive cutback in the subsidies that help the majority of Iranian families simply to survive. Clearly– what with huge outlays for nuclear development, the Revolutionary Guard, Hezbollah, Hamas and George Galloway’s Press TV salary, on top of the decline in oil prices– the Islamic Republic’s finances are stretched pretty tightly.

Why now? How would this affect their level of preparedness for the U.S.’s (dangerously risky) proposed refined petroleum sanctions? … Or, what’s so important in the short-term that they need this money?

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