Iranian President Presents Bill to Cut Subsidies

Iran's president has presented a sweeping economic package to parliament that will cut subsidies in the coming months.

The bill — if approved — is certain to hike prices and fuel inflation and is likely to further anger Iranians in a year when President Mahmoud Ahmadinejad is up for re-election.

Ahmadinejad claims plummeting oil prices have made his plan, which includes scrapping costly subsidies for fuel, water and electricity, inevitable.

Iran is already suffering from 28 percent inflation. That, along with Ahmadinejad's failed election promises to bring oil revenues to every Iranian family, will tax his 2009 re-election bid.

To compensate for the cut in subsidies, Ahmadinejad wants the government to pay the needy in cash.