Studies in Public Service Administration

Analysis of Budgetary Provisions from a Transparency Perspective (Case Study: Government Companies)

Document Type : Original Article

Authors

Seyyed Mojtaba Hashemi 1
Maliheh Rabiei Goransarab 2
Niloufar Mozafari 3
Jamour Hossein 4

1 esearcher at Islamic Parliament Research Center (IPRC), Tehran, Iran

2 Researcher at Islamic Parliament Research Center (IPRC), Tehran, Iran

3 Ph.D. student in Human Resource Management. Researcher at Islamic Parliament Research Center (IPRC), Tehran, Iran

4 PhD student in Business Policy Management, Researcher at Islamic Parliament Research Center (IPRC), Tehran, Iran

https://doi.org/10.22054/spsa.2025.88838.1073
Abstract
State-Owned Enterprises (SOEs) in Iran have consistently been a focal point of public financial policymaking due to their substantial share in the general budget's resources and expenditures. This research aims to analyze the budgetary provisions concerning these SOEs through the lens of transparency, utilizing a four-component model: Decision-Making System, Implementation and Participatory Process, Financial Information, and Performance Monitoring and Oversight. The study scrutinizes 86 provisions found in the annual Budget Laws for the years 1402 (49 provisions), 1403 (19 provisions), and 1404 (18 provisions).
The research employs an Exploratory Mixed-Methods strategy. The qualitative phase used content analysis to deconstruct the budgetary provisions. The quantitative phase validated the findings through a three-option questionnaire distributed among 66 budgetary experts.
Findings reveal that the budgetary provisions for SOEs lack sufficient transparency. The most significant challenges were observed in the components of Transparency in Financial Information and Performance Monitoring and Oversight. For instance, the monitoring and enforcement component was absent in 15 provisions of the 1402 Budget Law. The 1403 Budget Law contained the highest proportion of "almost transparent" provisions, whereas some provisions in the 1404 Budget Law were deemed "completely non-transparent" or "lacking sufficient transparency."
To enhance transparency, five key policy recommendations are proposed: 1. Mandating public disclosure of financial and executive information, 2. Formulating clear implementing regulations, 3. Institutionalizing a regular reporting system, 4. Redesigning transparent financial mechanisms, and 5. Strengthening the oversight role through system integration. These reforms are vital for improving financial governance and increasing accountability in this critical sector.
  1. Bushman, R., & Smith, A. J. (2003). Transparency, financial accounting information, and corporate governance. Federal Reserve Bank of New York Economic Policy Review, 19(1), 65–87.
  2. Butenko, I. (2023). Transparency of state-owned enterprises in Ukraine: Digital initiatives and governance challenges. Journal of Public Budgeting, Accounting & Financial Management, 35(2), 189–208.
  3. Butenko, V. V. (2023). Increasing the transparency of the budget process of Ukraine in current conditions. Market Economy: Modern Management Theory and Practice. https://doi.org/18524/2413-9998.2023.3(55).300664
  4. Craig, M. J., & Kopits, M. G. (1998). Transparency in government operations. International monetary fund.
  5. Cuadrado-Ballesteros, B., & Bisogno, M. (2022). Budget transparency and financial sustainability. Journal of Public Budgeting, Accounting & Financial Management, 34(6), 731–748.
  6. Cucciniello, M., Porumbescu, G. A., & Grimmelikhuijsen, S. (2017). 25 years of transparency research: Evidence and future directions. Public Administration Review, 77(1), 32–44.
  7. Garrett, E., & Vermeule, A. (2006). Transparency in the Budget Process. Constitutional Law eJournal. https://doi.org/10.2139/ssrn.877951
  8. Garrett, E., & Vermeule, A. (2006). Transparency in the budgeting process: Rhetoric and reality. Public Law and Legal Theory Working Papers, No. 97. University of Chicago.
  9. Heinemann, F., Moessinger, M. D., & Yeter, M. (2025). Budget rules and debt concealment: Evidence from public enterprises in Germany. European Journal of Political Economy, 78(1), 102458.
  10. Janssen, M. R., & Berntzen, L. (2018). The transparent smart city: How city councils and city administrations can apply smart technology for increased transparency. In B. Rodríguez (Ed.) , Smart technologies for smart governments (pp. 81–103). Springer.
  11. Levaieva, O., & Kucherenko, K. (2017). Transparency and accountability of state-owned enterprises: Institutional reforms and legal frameworks. International Journal of Public Administration, 40(3), 235–250.
  12. Molotok, M. (2020). Budget transparency in state-owned companies: A systematic literature review. International Public Management Review, 21(1), 12–37.
  13. Nasution, A. H., Nasution, B., & Saidin, O. K. (2020, March). Transparency of Information Disclosure in the Management of State-Owned Enterprises. In International Conference on Law, Governance and Islamic Society (ICOLGIS 2019) (pp. 25-28). Atlantis Press. https://doi.org/10.2991/assehr.k.200306.174
  14. (2002). OECD Best Practices for Budget Transparency. OECD Journal on Budgeting, 1(3), 7–14.
  15. Ott, K., Mačkić, V., & Bronić, M. (2019). Political stubbornness and online local budget transparency in Croatia. Zbornik radova Ekonomskog fakulteta u Rijeci, 37(2), 553–585.
  16. Prijaković, S. (2022). Impacts of budget transparency on economic and political outcomes: A review of empirical evidence. Croatian and Comparative Public Administration, 22(4), 753–784.
  17. Ríos, A. M., Guillamón, M. D., Benito, B., & Bastida, F. (2018). The influence of transparency on budget forecast deviations in municipal governments. Journal of Forecasting, 37(4), 457–474.
  18. Vaira, C. L., & Zhao, M. (2018). Enhancing budget transparency in China: A practical note on mechanisms and tools. Washington, D.C.: World Bank Group. Retrieved from http://documents.worldbank.org/curated/en/219931538126473964/Enhancing-Budget-Transparency-in-China-A-Practical-Note-on-Mechanisms-and-Tools
  19. Williams, A. (2015). Global index of information transparency and accountability. International Journal of Public Administration, 38(4), 267–279.
  20. Gharakhanlou, M. (2022). Review of the 1402 national budget bill (3): Budget of state-owned enterprises. Expert Reports Monthly of the Islamic Parliament Research Center, 30(11). (In Persian)
  21. Hosseini, A., & Gharakhanlou, M. (2024). Review of the second part of the 1404 national budget bill (6): Budget of state-owned enterprises. Expert Reports Monthly of the Islamic Parliament Research Center, 32(11). (In Persian)
  22. Mohajerani, A., Mashayekhi, A., & Talebian, M. (2019). Corporate governance in Iran: A case study of state-owned enterprises. Iranian Management Science Association Quarterly Journal, 14(53), 1–35.
  23. National Productivity Organization of Iran. (2023). Executive summary of the productivity report of state-owned companies in 2023. Tehran: Performance Analysis and Evaluation Deputy, Office of Device Productivity Assessment. (In Persian)
  24. Sobhanian, S. M. H. (2018). Review of the 1398 national budget bill (6): Budget transparency. Expert Reports Monthly of the Islamic Parliament Research Center, 26(10). (In Persian)
Studies in Public Service Administration
Volume 2, Issue 5
Autumn 2024
Pages 119-162

  • Receive Date 24 September 2025
  • Revise Date 15 October 2025
  • Accept Date 22 October 2025

Home

Editorial Boards

Submit Manuscript

Contact Us

Article Processing Charges