Institutional Analysis of Fiscal Decentralization in Iran during Development Plans

Decentralization theories in the economic literature are considered as promoting government’s productivity and efficiency and establishing regional balances.by applying special regional programs in 1351, decentralization is started in Iran. After Islamic revolution in Iran and especially after the imposed war, fiscal and economic decentralization was officially considered as a strategic policy for the developing of provinces. In this study, using Shah Model, based on analysis of Williamson's model, development plans were studied with institutional and thematic content analysis. Firstly, they founded planning committee and then planning council to step up towards decentralization .preparing the provincial development documents, creation of provincial revenue-expenditure system, decentralization of government services, relation of expenditure to provincial revenues and devolution of determining preference investment in different sector are five approach in planning and budgeting system in Iran that is founded in 3th and 4th plans. Compare pillars of fiscal decentralization on the model of the World Bank shows that the activities at the national level should largely be the same models representing and Policies, priorities and provision of local and regional nature of the work that is being done mainly by the provincial authorities but the process of Revenue assignment level is very low.