The Effect of Implementing the Targeted Subsidies Act on the Economy of Country

In recent decades, the distribution of subsidies, with the aim of keeping the generallevel of prices low and promoting the welfare of the consumers, as well as the wideownership of the government of the economy has impeded the required dynamicityin the economy in a way that the large volume of governmental support (around 26percent of the GDP) caused a lot of trouble for the government and the NNP, duringthe last three decades, did not show a noticeable increase. The mentioned reasons andmany others in the article necessitated the implementation of the plan for targetedsubsidies. This article includes four sections. In the first section, an introduction tothe urgency and importance of implementing the Act is provided. In the second part,a general definition and introduction of the Act of targeted subsidies are offered. Thethird part of the article explicates the effects of targeted subsidies on the economy ofthe country and provides samples from the countries which have implemented such anAct and shows the effects the implantation of such an Act has had on their economy.At the end, suggestions are made for better implementation of such a large economicplan.