Investigating the Causes of the Failure of the Policy of Subsidies in Iran

Subject Areas : Journal of Law and Politics

Leila Isavand ¹ , Mohammad Tohidfam ²

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Received: 2014-11-18 Accepted : 2015-04-19 Published : 2015-04-21

Keywords: subsidies, targeted subsidies, Economic Policy, Public Policy,

Abstract :

Iran is one of the most important sectors subsidies in the economic development plan that leads to a change in the process of giving subsidies. In the process of phasing out subsidies for fuel, food, water, electricity and other items of a change in that part of the subsidies are removed (60% in 1390) was paid in cash to citizens and other income This will only work, and cultural development. This work was conducted in late 1380 and much of it was done in the early 1390. The subsidies referred to as the greatest economic history project. According to official statistics of the Ministry of Economic Affairs and Finance, the first phase of the project failed and resulted in more households were below the povertyline. In this article, believe the failure of targeted subsidies policy implemented in the first phase of the deal.