Effect of Government budget composition on welfare indicators in Iran

This article analyzes the impact of Government budget composition on Poverty, human development and social welfare in Iran. ; The study uses a descriptive method and by applying the cause and effect and econometric method analyzes the effect of Government budget composition on social welfare during (1981-2013). ; The government expenditures are disaggregated into different types. The results reveal that public investments on health, education, social security, telecommunications, transportation and water have positive and significant impact on poverty reduction. On HDI, public expenditure on health, education and rural community development have positive and significant effect. Public spending on health, education, social security and telecommunications has most significant effects on social welfare. Any increase in per capita income will increase the quantity and quality of welfare. Direct assistance made to the NGOs in the welfare state increases the efficiency of government spending on welfare. The government spending of public safety has positive effect on welfare.; As a result, spending on social sectors will benefit the poor than other types of expenditure.;