The government of Iran arranged the budget structure in a new method on the basis of International Monetary Fund prescription since the year of 1381.1n this method the two balances ,that is, current operational balance and net transferring of assets balance have changed the form of financing the budget.In this paper time series annual data for the period 1358- 1380 are used for studying the effect of changing the financing structure of budget on economic growth by the use of Auto Regressive Distributed Lag (ARDL), exogeneity test and super exogeneity test. The results show that size of the current
budget has negative effect on economic growth and surplus of net transferring asset balance rationed the capital expenditures and decreased the positive effect of the expenditure size on the growth.
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