Iran's Subsidy and Voucher Plans Lose Effectiveness as Inflation Rises

Iran continues to apply subsidy and cash‑voucher (kala‑barg) programmes to ease household expenses, but their impact on purchasing power has faded. Economist Morteza Afkhah explained that the fixed monetary value of these supports cannot keep pace with the rapid inflation caused by currency devaluation, causing the gap to widen within a year.

Afkhah noted that while such social‑aid tools are used worldwide during crises, their success depends on strong macro‑economic fundamentals. In Iran, limited national income and production, together with uncontrolled price rises, have weakened the programmes, turning them into a form of rent rather than a lasting relief measure.