Esi jaan, again you're arguing the case for cutting subsidies. I don't think we need to debate that. As I said previously, the merits of cutting subsidies is not something any half intelligent would argue AGAINST. The debate is on where this money is going and how these savings are being put back into the economy - that's where they were supposed to go, but they obviously didn't. Where are they going under Rohani? Who's reaping the benefits of cutting subsidies, ordinary Iranians?
And that brings me to the question for both of you... You were both arguing that Rohani's election is going to help ordinary Iranians. That people like me don't care for, or are not in tuned with the plight of, ordinary Iranians. So, what I'm asking you is how is any of this, cutting subsidies, rising inflation, rising price of utilities and gasoline, or stagnant employment since this money's not going back into the economy, helping ordinary Iranians?!
Well As I said I do not have perfect answer for you.
Since the Government is financing Subsidies via Borrowing from Central Bank then I definitely think at the very least Subsidies cut will help the inflation issue.
But money is fungible and you are right. some of these saving will definitely find its way to Seda O Sima Budget and ....
But at the moment Iran's Capital Expenditures is at an all time low, the Government owes so much to the contractors that I think most of the money savings is going to have to be paid to all debt holders of the government.
Again, you might argue the Entities with connections will receive their money first. and I have no quarrel with that.
All I am saying since the current system is not sustainable
and Since the Targeted Subsidies actually has helped the poor and folks in Villages
I do think overall this is a good policy for the country.
Now this may very well hurt the some of the people that Voted For Rouhani, That is Middle Class and Upper Middle Class will likely get hurt more by this than helped by it in the short term.
think about this way better this system implemented now than a future democratically elected government wanting to implement such a painful system.