Definition of Budget
“Budget is t
he bill for forecasting state revenues and expenses of a solar year. This document has to be
passed by the parliament.”
“Government budget is a document predicting the state exchange transactions for a specific period of
time. The document needs to be pass
ed and is designed for a duration known as a financial year which is
equal to one solar year”.
According to Article 1 of the Public Audit Act, which was passed by the Islamic Consultative Assembly
on 23/8/1987,
the state budget is the financial national pl
an of the country. This document is designed for
one financial year and includes predictions on revenues and other funding sources. It also includes
estimations of costs of conducting operations which contribute to the development of policies and
definitio
n of legal goals. This document consists of the following three sections.
1
-
The general national budget which includes the following components:
a)
Prediction of revenues and funding sources obtained by the government bodies directly and indirectly
in the finan
cial year referred to in the budget act through treasury accounts.
b)
Prediction of revenues obtained in the financial year through public or private funding sources
designated for current, construction and specific credits of executive branches.
2
-
Budget allo
cated to government companies and banks which includes predictions of revenues and
other funding sources.
3
-
Budget allocated to institutions benefiting from sources other than the ones included in the national
budget plan.