Typology of Budgeting transaction of government to municipalities (local government) in Iran

Central governments finance local government''s expenditures in different ways. These different ways of financing emerge different types of intergovernmental grants that have special effect discussed in the literature. Non Earmarked grants، Earmarked grants، matching and none matching grants are some kinds of these grants. Central governments commonly have used these kinds of grants to access specific target including equity، efficiency and so on that every target need to be accessed by a specific type of transfers. So designing transfers system is an important thing in intergovernmental financing literature. In this paper typology of central government transaction to local government is studied. Then the laws related to these kinds of transaction have been studied. In one hand the results show in some laws of transfers to municipality، there is no appropriation between target and ways of transfer. in the other hand the structure of allocation disturbs appropriation between other laws and targets not to achieving goals.