Political Economy of Cash Subsidies in Iran (2005-2013)

The purpose of this paper is to examine the goals of the ninth and tenth governments in formulating and executing targeted distribution of subsidies under the title “Targeting Cash Subsidies Plan” in Iran. The question is how targeting these payments during the presidency of Mahmoud Ahmadinejad can be explained. The hypothesis of this research is that the characteristics of subsidy prepared the circumstances for making such payments by the said government. In this research, considering the nature of government which was always accompanied by an increase in incomes, it’s policies had a distribution approach, with the aim of increasing its support base and providing itself political legitimacy and popularity.