Investigating the volume of subsidies in Iran; Its economic and security dimensions

Document Type : Original Article

Authors

1 professor, Department of Management, Payam Nour University, Tehran, Iran.

2 M.A. of Economics, Faculty of Economics, University of Tehran, Tehran, Iran.

Abstract

One of the most controversial economic policies in the years after the Second World War, and especially since the 1970s, has been the payment of subsidies and their consequences. Subsidies should be targeted in order to prevent the waste of national resources and capital in addition to the direct and indirect benefits of different groups and the principled support of the relevant sector, and to provide the conditions for the sustainable development of the country.
The purpose of this study was to calculate the volume of subsidies in the country in 1399. Subsidies have different classifications. In this study, subsidies were calculated separately from budget subsidies, extra-budgetary and hidden, and their volume was calculated. Budget subsidies refer to the subsidies in the budget table, extra-budgetary subsidies are government duties that are not reflected in the budget laws, and hidden subsidies are included in the difference between the domestic and export prices of products.
According to the research results, the total of obvious subsidies reaches 242 thousand billion tomans. In addition, the total of hidden subsidies is estimated at 1930 thousand billion tomans. A total of 2172 thousand billion tomans of hidden subsidies, budgets and extra-budgets are included in this report, which is about 4 times the government budget in 1399.

Keywords