The Heavy Investment in Iran’s Armed Forces: An Overview of the Upcoming Budget Plan
Iran’s forthcoming budget plan unveils a striking emphasis on military spending, with more than half of the revenue generated from oil and gas exports designated for the nation’s armed forces. This revelation, reported by Iran International, indicates that around €24 billion will be yielded from these exports, with an astounding 51%—approximately €12 billion—allocated to military expenses.
The budget details a surge in the official euro exchange rate, which is expected to bolster military funding significantly. With oil priced at €57.5 per barrel, over 583,000 barrels are to be provided daily to the armed forces for potential international market sales. The Islamic Republic of Iran armed forces, comprising the IRGC, among others, notably benefit from these financial allocations.
While the specifics of additional military funding remain undisclosed in the draft, the trend of substantial military financing endures. Plans to elevate daily crude oil production and diversify revenue sources signal Iran’s ongoing reliance on oil and gas exports. However, concerns arise regarding Iran’s mounting debt due to government borrowing from the National Development Fund, posing risks to long-term financial sustainability.