A Mathematical Programing Model of Budget Allocation for Development Disparities Reduction among Iran Provinces

The issues of disparities, regional imbalance development and attempt to reducing development disparities among various regions have been attracted considerable attention among researchers, planners and policy makers. In this regard, this study employs a mathematical programing model for budget resources allocation among Iran provinces in order to development disparities reduction among them. In this regard, the goal of the study is divided to several main sectors include education, economic development and welfare indicators. Then the mathematical model is designed in order to reduce development gap among Iran provinces in these several sectors. For this regard, we first identify the province which has best performance in under investigating indicator and then we define and calculate distance variable for other provinces. Finally, after the specification of objective function and restrictions, the designed model is solved. Comparison results of the model with the actual situation in ۱۳۹۰ shows that the used allocating method of provinces budgeting has not been optimal, so it seems to be necessary to review in the current method of provinces budgeting.

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Keywords: Development Disparities , Mathematical Programing , Provinces of Iran , Budgeting. JEL Classification: C۶۱ , H۵۰ , H۷۲