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Macro trends of sustainable income for sustainable development; case study of tehran municipality

Author: 
Kamran Yeganegi and Amir Mahmood Zadeh
Subject Area: 
Social Sciences and Humanities
Abstract: 

In many countries, municipalities have been in the position of local governments, and decisions on many of the economic aspects of each city are entirely left to the municipalities to decentralize the activities of the central government.Naturally, municipalities and local governments are in need of funding to cover their current costs and to finance construction projects. At first glance, the option of receiving funding from the central government may be proposed as an easy way to finance the needs of the municipalities, but it is clear that the more independent of the state budget and the more self-sufficient the local governments and municipalities are in their sources of income, the more political and financial stability they will have in providing their financial resources. Political stability means that the dependence of municipal (local governments) budgets on direct government assistance, especially in large cities, increases the ability of state politicians to politically influence municipal decisions. Also, financial stability means that the more independent the funds of municipalities (local governments) are of government grants, the instability of municipal revenue will be lowered, or at least the instability will not be subject to decisions outside the municipality's complex. Therefore, municipalities will be able to predict their income situation more precisely and have their long-term and mid-term plans more readily. On the whole, it can be said that the greater self-support of municipalities can initiate their higher political and financial independence, which is the basis for the selection of appropriate local policies by municipalities and local governments.

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