IN THIS STUDY A STATIC COMPUTABLE GENERAL EQUILIBRIUM MODEL BASED ON IRANIAN SOCIAL ACCOUNTING MATRIX OF 1380 WAS APPLIED TO INVESTIGATE THE IMPACT OF 20 AND 50 PERCENT INCREASE IN GOVERNMENT EXPENDITURE UNDER FLOATING EXCHANGE RATE REGIMES ON POVERTY INDICES. THE IMPACT OF INCREASED GOVERNMENT EXPENDITURE ON POVERTY INDICES WAS PERFORMED BY ANALYZING ITS IMPACT ON HOUSEHOLD’S CONSUMPTION AND PRICES. THE RESULTS REVEALED THAT BASED ON THE CONSUMPTION CHANGES, INCREASED GOVERNMENT EXPENDITURE INCREASES POVERTY THROUGHOUT URBAN HOUSEHOLDS, WHILE REGARDING THE PRICE CHANGES, INCREMENTS OF GOVERNMENT EXPENDITURE WILL REDUCE POVERTY INDICES. IN THE CASE OF RURAL HOUSEHOLDS, BASED ON BOTH OF CONSUMPTION AND PRICE CHANGES APPROACHES, INCREASE IN GOVERNMENT EXPENDITURES RESULT IN REDUCED POVERTY INDICES. HOWEVER, GENERALLY SPEAKING, REGARDING THE LEVEL OF EXPENDITURE INCREMENT, CHANGES IN POVERTY INDICES ARE NOT CONSIDERABLE.