The relationship between revenue and government expenditure is an important subject in public economics especially for Iran country, which is suffering from persistent budget deficits. From point of view of theoretical studies, there are essentially four schools of thought on the direction of causation between government expenditure and revenue. The main purpose of this study is to investigate the Long and short Run relationship between government revenue and government expenditure in Iran Country covering data 1978- 2012 with using An Auto Regressive Distributive Lag (ARDL) Approach. The Iranian economy has been subject to a multitude of structural changes and regime shifts during the sample period. First, time series properties of the data are first analysed by Augmented Dickey-Fuller (ADF), Zivot-Andrews and Lee
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