Planning and Budgeting

Given the large contribution of government investment in the economy of Iran through spending on infrastructure budgets,resources distribution among the provinces was always one of the major problems in the economy. Distribution of budget among provinces theoriticalyis based on tactical and/or programmatic approach. In tactical approach, redistributive policyof the central government is based on political and electoral considerations, but in the programmatic approach, infrastructure investment distributes among provinces on the basis of economic criteria and the central government mainly focuses on the efficiency and equity indexes. This research estimates a modelfor infrastructure distribution including tactical and programmatic variables among the 28 provinces of Iran during the period of 1379-1390 as a panel data model,and then it can be determined what is the role of each political and economic criterion for budget allocation. Results show that tactical variables, efficiency and equity have positive effect on the infrastructure distribution.