Monetary & Financial Economics

Investigating the Factors Affecting the Error of Predicting Iran Government Budget Expenditures

Document Type : Original Article

Authors

Mehdi Fathabadi 1
Meysam Pashaee 2
Mosab Abdollahi Arani 3

1 Assistant Professor, Department of Economics, Firuzkoh Branch, Islamic Azad University, Firozkoh, Iran.

2 Ph. D Student in Economics, Firozkoh Unit, Islamic Free University, Firozkoh, Iran.

3 Assistant Professor, Department of Economics, Payam Noor University, Tehran, Iran.

https://doi.org/10.22067/mfe.2023.77014.1196
Abstract
The government budget is the largest and most important financial document of the country, it is expected every year. Unfortunately, the forecast error in budget expenditures and revenues has caused a budget deficit for the country in consecutive years. Therefore, in the present study, the factors affecting the error in forecasting government budget expenditures in the period 1360-96 have been investigated. For this purpose, a regression model has been used to examine the three models of cost credits, capital asset acquisition, and financial asset acquisition. The results of SURE model show that exchange rate variables and realized values of costs are effective in predicting all three cost variables and GDP is effective in forecasting cost credits and capital credits with coefficients of 1.201 and 1.662, i.e. when GDP Government spending and development credits are also increasingeffective in forecasting cost credits and capital credits with coefficients of 1.201 and 1.662, i.e. when GDP Government spending and development credits are also increasing

Keywords

Government Expenditures
Forecasting Error
Budget Deficit
Seemingly Unrelated Regression
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  • Receive Date 02 June 2022
  • Revise Date 21 January 2023
  • Accept Date 20 February 2023

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