Introduction: One of the most important stage in targeting the Subsidies, is identifying eligible households receive subsidies and transfer payments.

 Method: The method involves classifying households in the first stage, and applying Proxy Mean Test for clusters and households who live below the poverty line in the second stage .

 Findings: The Results have shown that in both urban and rural areas , first -class households need support . High percentage of households headed by women(their breadwinner are women), the low employment and high level of illiteracy among households headed, large household size, high dependency burden are some featuring of households in this study.

 Conclusion: By implementing Two-Stage Identification method, exclusion error is negligible and this method is more efficient than proxy mean test.