Country’s budget is financial planning of the country which provided for a financial year. This plan contains country’s revenues and expenditures which helps country to achieve its goals and better implantation of policies.
Annual budget contains three major parts:
- Government’s general budget
- Governmental companies` and banks` budget
- Other organizations` budget
In most of developed countries, according to the priority of revenues over expenditure, the governments should predict its revenue in the first step then they should classify expenditure according to the revenue. However, Iran`s budget structure is based on expenditures rather than revenues and economists should try to find a solution for this matter because it makes the Iran`s budget inflexible and it restricts officials to choose the best policies among different alternatives. So, in current procedure of budgeting in Iran, the government only predicts revenues. Total Amount of annual budget during the last 6 years and the amount of annual budget bill which has proposed 3 month ago to the parliament is shown in the table below:
- General Revenue: Total revenues of different ministries, governmental institutes, tax and dividend of governmental companies is called general revenue. Tax, oil export and bonds are the most important sections of this revenue. Therefore, the government should follow efficient strategy to have a better prediction in these sectors. The share of this revenue is about 27 percent of annual budget.
- Private Revenue: This revenue contains funds which is credited to specific consumptions according to legislation. The share of this revenue is less than 3 percent in country’s total budget.
- The Revenue of Governmental Companies: This revenue refers to incomes of governmental companies in return for their authorized operation. The share of this revenue is about 70 percent of total annual budget but there is no much information about this part and the government doesn’t release too much information about this part.
- General Expenditure: This group of expenditures refers to general costs such as current credit, construction budget.
- Private Expenditure: This cost contains funds which should be spend on specific areas according to legislation.
- The expenditure of Governmental Companies: This expenditure refers to costs of governmental companies for their authorized operation.