The Effect of Openness on Corruption in the Selected MENA Countries

 “Financial system” enforces long and stable restrictions through assigning numerical limitations on the fundamental indices of budget. After such restrictions are formed, the determined quantities are not changeable during the relevant time period and such determined quantities would be the guideline for the execution of financial policies. By being dependent on oil revenues in an unbalanced manner, Iran’s public finance has evolved in a way that it has made the country’s economy dependent in nature. The government’s budget has provided grounds for growth in prices and inflation through its dependence on oil revenues which is the main source of finance for public expenditures. On the other hand, with an increase in imports resulted from improvements in the oil sector and in order to neutralize the inflationary pressures and financing the Rial revenues of government’s budget, the country’s dependence on foreign sources has been intensified. In this study, by analyzing the resources and public consumption of the budget and the international transition, it has been suggested that in order to overcome the main structural problem of the budget (i.e. dependence on oil), three steps must be taken. First, transferring the minimum amount of resources coming from oil export to the government’s budget. Second, reforming the tax revenue system by expanding tax bases and eliminating exemptions. Third, increasing the productivity of current expenditures by establishing performance-based budgeting, executing it within a mid-term framework of governmental expenditures and transferring the capital asset projects and executing them within a public-private participation system.