This research aims to analyze the legal and institutional system of public budget oversight in Iran and assess its compliance with the requirements of good financial governance, transparency, accountability, and strengthening national power. The main issue of the research is the gap between the legal capacities of oversight and its operational efficiency, which is affected by factors such as the multiplicity of oversight institutions, the dominance of formal oversight, weak information coordination, and delays in preparing budget disbursement reports. The research method is applied in terms of purpose and descriptive-analytical in nature with a legal and documentary approach. Data were collected through library study and review of laws, regulations, official documents, and international standards and examined using qualitative content analysis and legal reasoning. The findings show that despite the provisions of the principles of administrative and judicial oversight in the Constitution, the existing system faces challenges such as legal ambiguity, institutional parallelism, inefficiency of the cash accounting system, and lack of result-oriented evaluation. The results indicate that improving the quality of budget disbursement reports, the independence of audit institutions, the development of performance auditing, the establishment of electronic monitoring systems, and the move towards operational budgeting will not only reduce corruption and enhance accountability, but also strengthen Iran's economic resilience and national power by improving resource allocation.