ANALYZING THE CONSEQUENCES OF TARGETED SUBSIDIES ON VARIOUS SECTORS OF THE ECONOMY AND THE UNWANTED STRATEGIES FOR REDUCING THE CONSEQUENCES

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MEHRABANI F.

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Journal Paper

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Journal: Journal Of Development Economics and Planning Year:2016 | Volume:4 | Issue:2 Page(s): 77-91

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Title

ANALYZING THE CONSEQUENCES OF TARGETED SUBSIDIES ON VARIOUS SECTORS OF THE ECONOMY AND THE UNWANTED STRATEGIES FOR REDUCING THE CONSEQUENCES

Author(s)

MEHRABANI F. | Issue Writer Certificate

Keywords

SUBSIDIESQ2

MODIFY CONSUMPTION PATTERNSQ2

PAYMENT OF SUBSIDIESQ2

Abstract

Until now what has been neglected in SUBSIDIES in the country is accurate targeting of this policy, until now subsidizing has been in a public form. Therefore, targeted SUBSIDIES can overcome the problem. However, targeted SUBSIDIES, in the absence of favorable conditions, may cause serious damage to various economic sectors. This article tries to diagnose the problems of targeted subsidy and show the alternatives to reduce the problems. The methodology used in this research was a descriptive one and therefore we used the statistics contained in the central bank's balance sheet and energy Statistical Yearbook. The results reflect the fact that the subsidy project (i.e., not targeted) as it stands now will lead to a fiscal illusion and increases the dependence on oil revenues, infation and financial funds disorders.

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