The economic policy of Ahmadinejad!
It is reported from Iran that on the question of subsidies, Ahmadinejad is keen to impose his will on Majlis. If it can not done in the way that he has suggested, it is said that his government will present a mini-budget- over and above the main budget which had just been turned into law to be implemented. The removal of subsidies has two sides: First, subsidies are removed and hence prices will have to rise. Second, some sections of the population would receive a cash subsidy to reduce the impact of government induced inflation. It seems to me that Ahmadinejad is paying lip service to the first part and focuses on the second part. To put it differently, in a strange sort of way, claims that if Majlis allows him to have 40000 Billion tomans income, his government will be able to pay more cash subsidies than a situation in which the income will be only 20000 billion tomans. The main thrust of Ahmadinejad's policy could be summarised as saying that 4 is greater than 2. If his government is allowed to raise 40000 billion tomans by removing subsidies, "the IMF demonstrations" will get out of control. Time would tell.