The program began one year ago with subsidies, most of which went to the rich, being phased out, and new monthly welfare payments being paid equally to everyone regardless of wealth. It was designed explicitly as a wealth redistribution program.
Majlis Deputy Musa-al-Reza Servati was quoted last week by the Fars news agency as saying the welfare program had thus far paid out 250 trillion rials ($23 billion) at the rate of $44 per head per month. But he said the phase-out of subsidies had provided only 180 trillion rials ($16.5 billion) for the welfare program.
The welfare program has thus paid out almost 40 percent more than has been put into the pot for welfare payments.
Servati said the Ahmadi-nejad Administration funded that gap by borrowing the difference from the Central Bank.
The special Majlis committee on economic reform has said it thinks the Ahmadi-nejad Administration has dipped illegally into the fund into which oil revenues are deposited until the Majlis votes on what to do with them.
Many economists and Majlis deputies have said they suspect the Ahmadi-nejad Administration is paying far more out in welfare than the welfare fund is receiving from suspended subsidy payments.
