Iran's Defense Budget Doubled

Iran plans to more than twofold increase in defense spending for next fiscal year. Sam the state budget is set to decrease by several percent.


Iranian President Mahmoud Ahmadinejad proposed to the parliament of the state budget reduction of 5.6% in the coming financial year. It would amount to 5100 billion rials (about 450 billion USD). 

At the same time is planned GDP growth of around 8%, reducing unemployment and leveling of social differences. The level of revenues in the next financial year was determined based on the value of a barrel of oil at $ 85 (now the price per barrel exceeds $ 100) and the average rate of 11 500 riyals to the dollar. Exports of goods other than oil would increase by 28%. Tehran is planning a significant increase in tax revenue, up to 20%. The budget should be passed within a few weeks.

Against the background of significant savings plans is a dramatic increase in defense spending. It has already amount to 127%. This is a response to pressure the U.S. and Israel to stem the Iranian nuclear program. Tehran fears an attack on its nuclear facilities and strengthen the armed forces, leading a demonstration exercises and tests of new weapons .