How Rouhani can Combat Corruption in Iran’s Budget

He also underlined the fact that the budget framework has been simplified and that more budgetary control has been transferred to the provinces.

Parliament member Mohammad Hosseini, a member of the planning and budget commission, has also commented that the PBB approach is the main strength of the new budget bill. Now that the bill is being debated in parliamentary commissions, it is important for lawmakers to maintain the provisions of the bill to increase the overall efficiency of government allocations.

Within state structures, PBB is an administrative methodology through which public funds are released to programs and projects based on their performance and the actual achievement of defined goals. As such, PBB allows funds to move toward projects that are achieving their goals as opposed to allocating resources to half-finished projects and programs that may draw resources without producing the desired results.

The PBB system does not intend to penalize or reward state institutions or agencies, but rather maximize the use of available resources. PBB also introduces a higher degree of flexibility into shifting priorities due to new needs on a regional level. This is why the introduction of PBB makes more sense if it is accompanied by genuine decentralization in budgetary affairs.

In a country like Iran, where allocations have rarely focused on actual performance, billions of dollars of state budgets have flown into projects that have never been finalized, partly due to corrupt dealings or mismanagement and partly due to the changing nature of actual needs.

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