TEHRAN // The government may withdraw its controversial economic reform bill if parliament insists on having direct supervision over the expenditure of money freed up from subsidies currently paid for crucial industries and products.
The Iranian government is now paying about US$100 billion (Dh367bn) in subsidies to the energy sector, for some food items, water, the postal service and rail and air transportation. Under the government's bill, the money freed up from the subsidies would amount to an estimated $10bn to $20bn a year.
But politicians are concerned that the aims of the reform plan may not be realised without parliamentary supervision of the distribution of the extra money - known as emancipated subsidy allocations - because of corruption or because the government may spend it in places other than those specified by the reforms.
Mr Ahmadinejad insists that such supervision will not be needed. Tying the issue of the emancipated subsidy allocations to the annual budget law by legislators - which would require the distribution to have parliamentary oversite - will obstruct the implementation of the government plan, Mohammad Reza Farzin, the deputy minister of economy and spokesman for the government economic development working group, was quoted by the pro-government Iran newspaper as saying.
Mr Farzin's remarks echoed the threats of the president, Mahmoud Ahmadinejad, last Tuesday of withdrawing the bill altogether if legislators did not grant full control of the emancipated subsidy allocations to the government.
This threat was repeated in a statement released by the president's office the next day but lobbying in parliament has so far prevented the actual withdrawal of the government bill.
On Tuesday, during a meeting with legislators in parliament to discuss the issue, Mr Ahmadinejad accused his opponents of conspiring to sabotage his economic reform plan by forming a special "headquarter", Khabar Online news portal reported yesterday.
Legislators have secured themselves the right to supervise the government's allocation of subsidies by including articles in the related law that require the government to put all of the money earmarked for subsidies into a special fund in the state treasury.
The state treasury is audited by a parliament-appointed audit court.
Legislators have also reduced the percentage from the emancipated allocations to be distributed to families from the government-proposed 60 per cent to 50 per cent, saying that improvements to the social welfare system compensate for the reduction in direct payments.
The government bill prescribed payments only to low-income families, but after heated debates, this was changed so that money would be given to all citizens irrespective of their income.
The annual inflation rate stood at 16.7 per cent in October, and opponents of Mr Ahmadinejad's economic reform plan, such as the reformist legislator Alireza Mahjoub, claim that the figure could rise to as much as 60 per cent after the implementation of the proposed reforms. Legislators have so far given the government freedom to decide the new prices for oil and other commodities and the government is expected to quadruple the oil price, which in its turn can affect the prices of many other commodities.
The amount of emancipated subsidy allocations will depend on several variables, including international and domestic prices for commodities such as petrol and wheat. A precise estimate of the total amount of subsidy compensation to be paid to families is therefore a difficult task. Parliamentarians want the government's pricing of the commodities for which the subsidies are removed to be done in a manner that provides between $10bn and $20bn in revenues for the government in the first year of the implementation of the plan.
Considering the fact that by the decision of the parliament the emancipated subsidy allocations at the disposal of the government will not exceed $20bn, the maximum that each person may expect to receive from the government will not be much more than $20 per month.
Most citizens have a vague idea about the amount of the compensation money to be paid to them and how the new situation will affect their lives, while many expect the prices of basic commodities to increase dramatically after the plan is implemented.
"My experience tells me that a small increase or even the expectation of an increase in the price of fuel can shoot up all the other prices," Hasan Karimi, 48, a taxi driver in, said.
"The price of things like eggs, meat and chicken and sugar has already increased by at least 10 per cent since last month after a relative stability of prices in the preceding months. I guess this has a lot to do with the expectation of the elimination of subsidies," he said.
"If, as some people say, the government is going to pay only about 200,000 Iranian rials [Dh73] per person as compensation, I seriously think the likes of me will be in deep trouble. This is much less than Mr Ahmadinejad was promising a few months ago before he was re-elected," Mr Karimi said.
@Email:msinaiee@thenational.ae
Gulf rugby
Who’s won what so far in 2018/19
Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain
What’s left
UAE Conference
March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers
March 29, final
UAE Premiership
March 22, play-offs:
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes
March 29, final
Bio
Born in Dibba, Sharjah in 1972.
He is the eldest among 11 brothers and sisters.
He was educated in Sharjah schools and is a graduate of UAE University in Al Ain.
He has written poetry for 30 years and has had work published in local newspapers.
He likes all kinds of adventure movies that relate to his work.
His dream is a safe and preserved environment for all humankind.
His favourite book is The Quran, and 'Maze of Innovation and Creativity', written by his brother.
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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AL%20BOOM
%3Cp%20style%3D%22text-align%3Ajustify%3B%22%3E%26nbsp%3B%26nbsp%3B%26nbsp%3BDirector%3AAssad%20Al%20Waslati%26nbsp%3B%3C%2Fp%3E%0A%3Cp%20style%3D%22text-align%3Ajustify%3B%22%3E%0DStarring%3A%20Omar%20Al%20Mulla%2C%20Badr%20Hakami%20and%20Rehab%20Al%20Attar%0D%3Cbr%3E%0D%3Cbr%3EStreaming%20on%3A%20ADtv%0D%3Cbr%3E%0D%3Cbr%3ERating%3A%203.5%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
Australia World Cup squad
Aaron Finch (capt), Usman Khawaja, David Warner, Steve Smith, Shaun Marsh, Glenn Maxwell, Marcus Stoinis, Alex Carey, Pat Cummins, Mitchell Starc, Jhye Richardson, Nathan Coulter-Nile, Jason Behrendorff, Nathan Lyon, Adam Zampa
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
RESULT
Uruguay 3 Russia 0
Uruguay: Suárez (10'), Cheryshev (23' og), Cavani (90')
Russia: Smolnikov (Red card: 36')
Man of the match: Diego Godin (Uruguay)
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Raha%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Kuwait%2FSaudi%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Tech%20Logistics%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2414%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Soor%20Capital%2C%20eWTP%20Arabia%20Capital%2C%20Aujan%20Enterprises%2C%20Nox%20Management%2C%20Cedar%20Mundi%20Ventures%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20166%3C%2Fp%3E%0A
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
UAE%20ILT20
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