Effect of Energy Price Liberalization on Budget in Iran

In the current work, effect of eliminating energy carriers’ subsidies and inflation due to increased prices based on three possible scenarios is considered. In case of removal of subsides, the added value of sectors are become more realistic and these changes have different effects on production and shall affect the price of goods in all parts with a variety of ratios. In order to do so, input- output approach has been used in predicting the consequences resulted from implementation of economic revolution plan and government budget and inflation. Considering the expected prices of the government, the findings of this study indicate the highest inflation effects in the aerial transportation, brick and cement sectors.