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The budget system is a fundamental component of modern constitutional politics. It works for the establishment of not only the fiscal discipline, but also for parliamentary control over tax and fiscal policies. This study aims to portray controversy between these two principles over the legislation of the General Budget Act for 1303/1924-25, the first comprehensive budget law in Iran. An analysis of parliamentary and other contemporary sources reveals how the National Assembly prioritized their control over budget-making, whereas Administrator General of Finance Millspaugh (1922–1927) struggled to maintain fiscal discipline. The lack of cooperation between them consequently benefitted Prime Minister Reza Khan (1923–1925; later Reza Shah Pahlavi 1925–1941), who desired to seize full control of state finance. These findings contribute to a deeper understanding of the constitutional politics on the eve of Pahlavi rule, as well as the process of Reza Khan’s rise to power.

Between parliamentary control and fiscal discipline: the General Budget Act for 1303/1924-25 (1925) on the eve of Pahlavi rule