Governments Annual Budget Impact on Added Value and Potential Employment of Economic Activities

The relationship between added value of economic activities and the Governments budget along with the impact of this budget on the employment of economic activities are among the issues that economic decision-makers and analysts assume to be crucial. Classification of statistical data has not yet allowed experts and decision-makers to evaluate the Governments role in production and employment in different economic activities in Iran. This paper first classifies Irans Governments budget according to International Standard Industrial Classification using 2000 input-output table. Then it analyses the relation between added value and the Governments budget on the basis of L.R. Klein (1983) and Yulia Zaytseva (2000). Finally, the Impact of Governments budget on employment in various economic sectors is surveyed according to studies done by Konstadionos and Shrestha (1991).