Abstarct: The study of the nature and causes of inflation has always been considered because of significant effects on the life of the community and other macroeconomic variables such as government expenditures, income distribution, employment, and so on. baxsed on theoretical literature and empirical evidence, the source of chronic inflation in Iran is considered as a deficit and volume of liquidity. Therefore, this study examines the effect of the state budget (current and development budget) on inflation in selected provinces of Iran with respect to independent variables. Population, rural population, urban population, unemployment and gross domestic product during the years 1395-1385. In this study, two models were estimated separately and investigated the state budget Ast.1- effect on inflation in the provinces of Iran (2) the effects of government spending on rural inflation provinces of Iran. For this purpose, the Mild Pavement Transmission Regression Model (PSTR), which is very suitable for analyzing heterogeneous panel data, has been used. The experimental results obtained in this study, with the rejection of the linearity hypothesis, suggested a two-mode diet with a threshold size of the government budget of 14.22 for the first model (the effect of the state budget on urban inflation) and 42.22 in the second model. Slowly The results of this survey indicate that the government budget had a negative and significant effect on the urban inflation rate both in the first regime and in the second regime, which in the second regime increased the intensity of this effect. The size of the state budget at the lower threshold levels of the villages does not have an effect on the rural inflation of the selected provinces, but by crossing the threshold or entering the second regime, the effect of the budget on rural inflation in the selected provinces is negative and significant It should be. The main hypothesis is that with increasing government funding, inflation in cities and villages in selected provinces of Iran increases.