Analysis of Subsidies Payment Condition in Iran with Emphasis on the Pathology of Government Policies of Reforming Subsidies Payment System

In recent decades، in order to Protect vulnerable groups، equitable distribution of income، stabilization of prices and protection of production Subsidies directly paid to part of the essential goods and services costs and Energy carriers but population growth، expansion of subsidized goods and services، consumption and trafficking increase due to high difference between domestic and international commodity prices led to great increase in size of subsidies in Iran. This paper aims to analyze the pathology of the government policy in subsidies reform. The results show a significant mismatch between the plan executers (government and people) and also indicate that objectives of plan (such as economic structural reform، energy consuming management and equitable distribution of income) have fundamental weaknesses. The plan has implemented in improper، because considering macroeconomic and its variables weaknesses government cannot design short، medium and long term Structural reform plan. Furthermore، predisposing factors has remained in an aura of ambiguity. The economy’s readiness to create optimal and efficient allocation mechanism، decreased and sometimes disturbed the price mechanism. According to the results Pragmatic، Quantity-oriented and Quality monitoring management is not desirable because the negative economic effects of the plan are more than its positive ones.