Investigating the economic and social effects of the allocation of government expenditures by the Provincial Planning and Development Council in Iran

Economic growth and development is one of the basic goals of all the countries of the world, so far, many influential factors have been presented for this goal. The government's construction budget is one of the most important and essential factors influencing economic growth. If the central government cannot make fundamental changes in accordance with regional needs and tastes, the provision of public goods and services will lose its efficiency, and local governments can improve efficiency, and this efficiency improvement comes from local governments' awareness of the needs, capacities, and tastes of local people. By knowing the needs and talents, the productivity increases and ultimately the production rate increases. In Iran, the Provincial Planning and Development Council is in charge of allocating the annual provincial budget, and for many years, this council has been allocating provincial budgets to various affairs (public affairs budget, defense budget, economic affairs budget, and social affairs budget) and cities. The aim of the present research is to investigate the economic effects of the allocation of credits for the acquisition of provincial capital assets by the Provincial Planning and Development Council in the territory of Iran. The data of this research was collected through the website of Iran Statistics Center for all provinces during the years 2018-2019. This research is practical in terms of its purpose and was analyzed using ordinary least squares panel data method in the environment of Eviuse program and its results show that with a one percent increase in the budget of economic affairs, the GDP per capita increases by 0.241848 percent. With a one percent increase in the public service budget, the GDP per capita increases by 0.102297 percent, with a one percent increase in the social affairs budget, the GDP per capita increases by 0.09448 percent, and with a one percent increase in the military budget, the GDP per capita increases by 0.074006 percent. Since one of the basic goals of governments is to achieve economic growth, politicians In order to achieve this important goal, the planners, especially the Provincial Planning and Development Council, should pay more attention in allocating budgets to economic affairs, public affairs, and education and health sector budgets in order to increase the productivity of the labor force and ultimately the economic growth of the country.