The Impact of Targeted Subsidies Reform Policy on Alleviation of Poverty - An Evaluation

On Decmber 2010, the economic reform program, so called "Targeted Subsidies Reform" had been implemented to organize the subsidy payment in Iran in toto. The silent feature of this economic program was per se payment of direct subsidies to the households. As a result, during the execution of this policy, many households got benefited from the transfer payment, irrespective of the income group which they belonged to, Ipsofacto. However, in recent years, one may observe a modicum ebb in the participation rate of the high income group in the Targeted Subsidies Reform Program. In this paper, an attempt is made to investigate the impact of transfer payment derived from the subsidy reform policy on poverty alleviation of households during the study period of 2009-2016. Hence, for this purpose the numerical poverty indices such as FGT, CHU and SST, along with the poverty ordering methods were appraised and calculated Pro rata. The results prima facie indicate that the "Targeted Subsidies Reform Policy" was effective in diminishing the menace and incidence of poverty, at the beginning stages of its implementation in Iran, though its impact got neutralized in the course of time, Sine qua non.