Ahmadinejad: Subsidy bill stops squander

The Iranian President, Mahmoud Ahmadinejad says the subsidy redistribution bill would stop excessive consumption in the country.

"The plan would prevent an important part of excessive consumption (in Iranian society), as well as injustice in the redistribution of subsidies," President Ahmadinejad said in a live interview on Iranian TV Sunday night.

Ahmadinejad noted that for the proper implementation of the bill, several policies in different economic fields such as taxing, customs and banking need to be corrected.

On Sunday, Iran's parliament approved the outlines of a subsidy reform plan proposed by the government.

The approval comes seven months after lawmakers excluded the bill from the annual budget proposal on fears that it could increase inflation. The parliament still should approve the details of the bill which will be discussed on Monday.

Under the bill, subsidies on energy carriers such as gasoline, gas and electricity will be cut and a portion of the recovered revenue will be distributed among lower income citizens.