Economic and Planning Research

The aim of this paper is analyzing the effect of government fiscal and budget decentralization on the size of the local states (provinces) and provinces economic development. For this, fiscal, budget and economic data were collected to 30 provinces for period of ten years 1381-1390. The results by using panel data, doing regression and LLc test show that fiscal decentralization and pool income has positively and meaningfully effect on the size of local states (provincial). In addition. Results show that fiscal decentralization provincial practitioner labor and provincial reconstructive budget has been positively and meaningfully effect on economic growth.