Tehran; the 10th Iranian government was not willing to pay subsidies to people and this is the reason that we witness excessive import in Iran.

IFIF Public Relations; the budget of the year 1395 (2016-2017) yesterday was sent to the government while in the section of objective subsidies, there were no details mentioned. According to rumors government, does not have any decision to pay subsidy to manufactures. Based on the low of objective subsidies, 30% of state revenues from the subsidy must be consume in production sector. This share of manufactures was forgotten since implying the low of objective subsidies in the 10th government. Also in the 11th government, none of the manufactures got their share.

In the budget of 1394, the subsidy for water decreased from 10 milliard Toman to 5200 milliard Toman; but from this share, only 7.1% was paid to production section. 50 Milliard Toman from this figure, is related to non-oil exports with the priority of technical engineering services export, 83 Milliard Toman is related to Concrete blocks Mazootsoz and 10 Milliard is related to sugar factories for structural reforms.

Now in the budget of 1395, there is no name of subsidy and government prefer to don’t publish the details about the subsidy objectives plan. According to rumors government does not have any decision to pay subsidy to manufactures. But the point is that manufacturers have no longer waiting for that share of subsidy. The main point in this situation is the fact that subsidy obviously damanged Iran’s production. This damage became deeper by opening the doors of Iran to excessive imports and increasing the number of sanctions left a big wound on the body of Iran’s industry.

Now in the 11th government, officials also forgot to pay the subsidy to manufactures. These days everyone are talking about the Iran’s economic development, but how is it possible to heal this wound?

Abdol vahab Sahl Abadi, Chairman of Iran’s house of industry and mines said to “FOrsat Emrooz” newspaper:” the existence or absence of the manufacturing budget does not have anything to do with us. Because there were no presence before and now eliminating it doesn’t make any difference for us.”

Mohammadreza Mortazavi, the head of Iran’s house od industry and mines said: “ the 10th government has never had any plans for paying the subsidy to producers and manufacturers. Since the very first day, they were focusing on consumption not production. This is why we witnessed excessive imports. In the 11th government there were no money to spend on production. The main problem of our society is production and small amount of money won’t solve any problem.”

Mortazavi also referred on providing a healthy economic environment and explained: “our economy should return to normal. The biggest subsidy that government can provide for manufacturers is creating a healthy environment for business. If we could have a competitive environment, politicians behave wisely and we create a productive relationship with our neighbor countries, we will solve our problems ourselves. With opening the swift system, we would be able to move the businesses forward.”

“the best subsidy that government can provide to the production part is creating a non-conflict, mature and rational environment for business. We need an special environment for production and we can solve the rest of the problems ourselves. Because it’s not possible to take money from the government and the reason is that there is no money.” He added.

It looks that there would be no manufacturing production and by knowing this fact, manufacturers only need a healthy competitive environment for business now that the sanction has eliminated. /