A huge proportion of the Iranian budget is spent on subsidizing a wide range of goods for Iranian consumers from food to refined petroleum. President Ahmadinejad has been pro posing a big cut in that subsidy. His argument is that it should be replaced with cash handouts to the most needy. But the Iranian parliament is worried that Mr Ahmadinejad"s proposal could increase inflation to an annual figure of up to 50%. So members of parliament have halved the proposed cuts. There"s concern that a dramatic rise in prices could provoke a new round of unrest and perhaps lead the poorer classes to give more active support to the opposition. There"re also suspicions that the real motive for the subsidy cut is to make up for a budget shortfall. Clear figures are hard to get hold of, but it seems that Mr Ahmadinejad"s government failed to build up any substantial cash reserves when oil prices were at record levels. For years Iranians have been suffering multiple economic problems including inflation at or above 2%. Blame is placed either on Mr Ahmadinejad"s eccentric management of Iran"s finances or on international sanctions or a combination of both. With new sanctions actively under discussion, the situation is not about to get any easier.