Introduction
Over the past two decades, performance-based budgeting (PBB) has emerged as a key reform in public financial management, particularly in the context of urban governance. Unlike traditional input-driven budgeting, PBB emphasizes outputs and results, prioritizing efficiency, effectiveness, transparency, and accountability. Tabriz Municipality, as one of Iran’s largest metropolitan governments, illustrates these challenges in practice. Investigating its case can provide broader insights into the difficulties faced by other municipalities in the country.
Data and Method
The study builds on the conceptual framework of barriers to PBB developed by Ghorbani et al. (2025). Rather than producing a mere checklist of obstacles, the research adopts a systems thinking approach to explore how institutional and managerial structures continuously reproduce these barriers.
System archetypes were employed to map causal loops and identify recurring patterns of behavior.
Results
The systemic analysis revealed that barriers to PBB implementation in Tabriz Municipality are multi-layered and deeply embedded within institutional, cultural, and structural contexts. Eight critical archetypes were identified:
- Program–budget misalignment
- Weak inter-institutional coordination
- Limited adaptive capacity
- Resource constraints
- Financial dependence on the central government
- Rent-seeking behavior
- Revenue instability
- Imposed additional responsibilities
Discussion and Conclusion
The results align with both domestic and international evidence. For example, Ghodrati et al. (2011) identified managerial weaknesses and structural inefficiencies in Qom Municipality, while studies by Kontadi and Livrianti (2022) and Salahuddin et al. (2024) reported bureaucratic resistance, insufficient institutional capacity, and political pressures in developing countries. Similarly, the IMF (2009) and case studies, such as those from Slovakia (Sciendo, 2022), highlight fiscal transparency, financial independence, and alignment between strategic goals and resource allocation as prerequisites for success.
The convergence of findings suggests that Iranian municipalities face not only local barriers but also globally recognized structural challenges. Therefore, reforms must move beyond piecemeal or short-term measures and instead focus on deep institutional and structural transformations.
This study is limited by its single case study design and reliance on qualitative methods, which restricts the generalizability of its findings.