Choosing the best method for targeting of subsidies using fuzzy multi-criteria decision

The subsidy is one of the most important economic tools and the government’s supportive policies for the protection of low-income groups. The inefficiency of the subsidy distribution puts a heavy cost burden on the government and also create injustice. Subsidies are aimed to achieve social justice, welfare, and fair income distribution. Therefore, the necessity of paying subsidies and support for low-income groups is obvious, but the problem is that how we should allocate the subsidy. Since decision making is related to the mind and human knowledge more than other factors, in this paper, a fuzzy multi-criteria decision model is used for selecting the most suitable method for allocating the subsidies. The results show that despite the disadvantage of the cash subsidy system, it has higher utility rather than the subsidized commodities plan, coupons system, and subsidized prices. Although, the utility of the subsidized commodities plan and the utility of the coupons system are very close together. But subsidized prices plan is lower than the three other options.