Impact of Targeted Subsidies Implementation on Poverty and Instability of Rural Household Economy in Iran (Case study: Villages of Neishabour county)

Implementing subsidies targeting policy in Iran is one of the measures aimed at reducing poverty, reducing the class gap between different deciles of society and especially improving economic indicators in rural areas. The present study aimed to evaluate the effects of subsidizing targeting on poverty and instability of rural households. This research is a fundamental exploratory and descriptive-analytical research. The required data were collected through both field and document methods. In this study, first, the research indices in two 6-year periods, before subsidizing targeting (2005-2010) and 6-year period after subsidizing targeting (2011-2016), were studied in all villages of the country and the average of each The index was compared before and after the targeting of subsidies and then the results of this section were compared with those of field research in the sample studied. The statistical sample of this study consisted of 22 villages of Neyshabur villages were selected by systematic random sampling using Cochran formula. The results of the study showed that the implementation of targeted subsidies has, in the first place, raised inflation rates and in some years even surpassed rural inflation over urban inflation. It has also led to changes in the composition of household expenditures, changes in the composition of household food expenditures and non-food household expenditures. But the implementation of the plan, because of the high rate of household benefit from the project, ultimately increased household income and also created a new source of income for rural households. But the implementation of the plan, because of the high rate of household benefit from the project, ultimately increased household income and also created a new source of income for rural households.