Explain the importance of revenue sources for decentralization success; Suggestions for the success of local institutions in Iran

Decentralization and local government formation is a complex and long process that works to increase the participation of all members of a community in the development process based on local capacities, capabilities and resources. In decentralization, the central government delegates decision-making power to local institutions whose managers are elected by the local people, but whose operation is under the control and supervision of the central government. In other words, decentralization refers to the relative authority of local governments to set goals, provide resources, and administer and implement public policies. One of the prerequisites for the success and sustainability of local government is the provision of revenue sources commensurate with the duties and responsibilities. In Iran, the adoption of a policy of financial independence from the government without defining new financial sources has created many problems and challenges for local institutions. The present study intends to study the problems of councils and municipalities in the field of revenue sources in addition to comparative studies, and finally to provide solutions in this regard. These include promoting transparency, accountability and accountability, increasing the share of municipalities in revenues from the VAT law, creating a sustainable municipal revenue system based on renovation tolls, and exploiting small businesses in the local economy.