Investigating the method of external financing of municipal projects

In the process of developing the country and implementing effective development projects in improving the production infrastructure, one of the most important and sensitive parts that are the focus of managers and policy makers of the production system is to provide and provide initial capital. One of the various ways of financing the government to advance projects is to provide the basis for financing from abroad. A fixed issue that has been mentioned in the budget programs of previous years, and the government has been tasked with designing and upgrading the foreign financing system. The municipality uses internal resources (operating income, general budget, reserves, etc.) and sources outside the municipality to meet its current and development financial needs. The municipality's internal resources do not normally meet its financial needs; As a result, the municipality will not be able to implement urban projects on which city life depends. Therefore, inevitably, through interaction with the financial system outside its resources, it finances projects. Municipalities receive credit from financial institutions active in financial markets, such as banks or capital markets in financial markets, to meet their financial needs, and obtain the funds they need. The obtained cash is used in its current and development operations; As a result, revenue is generated or a service is provided in the city. This study seeks to understand the interaction of the municipality with the financial system to determine the position of foreign financing in this field and its efficiency.