The
Iranian targeted subsidy plan also known as the
subsidy reform plan was passed by the
Iranian Parliament on January 5, 2010. The
government has described the subsidy plan as the "biggest surgery" to the
nation's economy in half a century and "one of the most important undertakings in Iran's recent economic history". The goal of the subsidy reform plan is to replace subsidies on food and
energy (80% of total) with targeted social assistance, in accordance with a
Five Year Economic Development Plan and a move towards
free market prices in a 5-year period. The subsidy reform plan is the most important part of a broader
Iranian economic reform plan.