Iran’s Public Financial Management Crisis: Challenges, Insights, and Reform Pathways

This study investigates the systemic challenges within Iran’s Public Financial Management (PFM) system, focusing on the interplay of fiscal inefficiencies, structural imbalances, and external pressures. Key findings reveal that chronic budget deficits, neglect of PFM reforms, overreliance on oil revenues, and widespread energy subsidies significantly undermine fiscal stability. Inefficient budgeting practices, lack of strategic planning, and limitations in resource management further exacerbate these issues, compounded by political and social pressures, sanctions, and tax evasion. A causal loop diagram is utilized to map the interrelations and feedback mechanisms within the PFM governance ecosystem. The study proposes actionable managerial insights to address these challenges, including adopting performance-based budgeting, reducing implicit subsidies, diversifying revenue sources, and enhancing institutional oversight. Emphasis is placed on leveraging international best practices, fostering energy efficiency, and integrating transparency into fiscal operations. The study concludes that resolving Iran’s PFM challenges is a collective responsibility that requires a holistic, multidimensional approach that balances fiscal, social, and political factors. By implementing these reforms, policymakers, academics, and financial management professionals can play a crucial role in building a resilient and sustainable financial system, reducing reliance on traditional revenue streams, and promoting long-term economic stability, instilling hope for a brighter financial future for Iran.

کلیدواژه ها:

Public Financial Management ، Budget Deficit ، Resource Management ، Economic Reform