Ahmadinejad

Ahmadinejad may withdraw subsidy bill

Iran's president calls on the parliament to shelve a plan to redistribute subsidies in cash, if the original proposal is not approved by lawmakers

In a two-page Monday letter to Iranian Majlis Speaker Ali Larijani, President Mahmoud Ahmadinejad said only his original proposal could achieve the objectives his government seeks in maintaining the economy.

Ahmadinejad said unless the original proposal is approved by the parliament, the Economic Reform Plan should be shelved.

The reform plan was brought forward by the president with the aim of enabling the government to reduce dependence on oil revenues and tackling the country's root economic problems, including a rising inflation.

The plan would cut costly energy subsidies and redistribute a larger portion of the sum among citizens.

Rapportuer of the Majlis Energy Commission Ali Adyani on Monday told Fars News Agency that the government had asked for 35 billion dollars to implement the Economic Reform Plan while the parliament only approved of 8.5 billion dollars.

Iran's economy is vastly dependent on oil as it accounts for 80 percent of the country's foreign exchange revenues. The sharp downward spiral of oil prices has prompted economists to predict that Tehran will face a considerable budget deficit within the space of a few months.

International economists believe Iran should move to remove subsidies in order to overcome difficulties in its economy. The government and Majlis are reportedly discussing ways to do so.

SF/MD