The Relationship Between the Government Budget and the Socio-economic Development of the Country's Provinces

The central issue of this paper is the study of the ratio of the budget allocation of the government with the level of development of the provinces of Iran. From this point of view, the importance of balanced regional development is justified by reviewing and introduction of conceptual foundations. The budget allocation criteria in different countries are reviewed and the suitable type of Iran is introduced. The method of study is taxonomy and classification of the existing situation based on indicators made from existing data. By combining the indicators, the development rank of each province is extracted and its entitlement rank is also calculated from the government budget. The result of the research indicates that the provincial budget allocation is not based on the degree of underdevelopment of the provinces and the budget process in Iran is not aimed at reducing inequality and regional gap. Along with other factors including regional coordinates, the budget plays an important role in infrastructure development and investment attraction and regional market formation. Balanced development that guarantees stability and security requires equal budget allocation as a national necessity and a legal duty of the government.Balanced development that guarantees stability and security requires equal budget allocation as a national necessity and a legal duty of the government.