Iran's parliament passed a legislation on Wednesday to suspend cash subsidies to 24 million people in the country, enraging President Hassan Rouhani.

According to the new laws set by parliament, the government will have to stop monthly cash disbursement of $12 a person to many civil servants, paramilitary volunteers, and members of the armed forces as well as other large groups who are currently entitled some form of social welfare, the Iranian Students News Agency reported. The people of Iran have been receiving the subsidy amount since 2010.

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The parliament's action put President Rouhani in a tight spot, lead experts say. Withdraing subsidies is a complex part of any economic reform. While the president has vowed to take up reforms, this  sudden move by the parliament is likely to bring up a lot of uneasy questions for him on handling the country's economy.

Some of Iran's urbanites have complained that the amount the government is paying in the form of subsidy is meagre, adding that they prefer not to receive this small amount anymore. However, rural Iranians thinks otherwise; many reportedly feel that this monthly stipend is nothing but their fair share of the country's wealth and it must continue.

With flabby oil prices, Iran is facing a tough time stabilizing its economy and national income. Global financial bodies such as the International Monetary Fund (IMF) and other financial groups have cautioned Tehran that the country must start the reform process and should not continue monthly cash payments to the entire 80 million people as it is being done at the moment. According to the IMF, if this measure is continued for some time, the country will be facing a serious risk of running into a huge monetary deficit.

"This particular move of cancelling subsidy is unfair and may create difficulties for most of these people," government spokesman Mohammad Bagher Nowbakht told reporters.

TagsIran, President Hassan Rouhani