Iran's national military budget increases by 127 percent

Discussion in 'Iranian Defence Forum' started by IranZamin, Feb 1, 2012.

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  1. IranZamin
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    http://www.mehrnews.com/en/newsdetail.aspx?NewsID=1522851

    Iran raises defense budget 127 percent for next year
    TEHRAN, Feb. 1 (MNA) – President Mahmoud Ahmadinejad presented the administration’s draft of the national budget bill for Iranian calendar year 1391, which starts on March 20, to the Majlis on Wednesday.

    The proposed national budget amounts to about 5.1 quadrillion rials (approximately $416 billion). The national budget for the previous year had envisaged about 5.39 quadrillion rials of expenditures.

    Although, a small decrease is seen in the national budget compared to the national budget of the previous Iranian calendar year, the defense budget shows an increase of 127 percent.

    The administration has also allocated more money for development, research, and health projects.

    The budget for the running costs of the administration has been decreased by 5.6 percent and the administration’s tax revenues have been envisaged to go up by 20 percent.

    Next year’s national budget is based on an oil price of $85 per barrel and the value of the U.S. dollar has been estimated at 11,500 rials.

    The lawmakers should first approve the generalities of the draft budget bill, and then they will commence work on the examination of the details of the articles in Majlis committees in a process that may continue for a few weeks.


    AM/PA
    END
    MNA
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  2. poseidon
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    poseidon BANNED

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    According to wilkepedia Iran revenues are 110 billion dollars...how come it says more than 500 billion here.
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  3. longbrained
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    longbrained SENIOR MEMBER

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    It is because the government owns alot of companies. The government budget is actually 110 billion but the budget of companies is much larger. Imagine if US government also owned Apple, Microsoft, GE etc etc. then it would have two budgets one for the government and one for the companies.

    ---------- Post added at 09:43 PM ---------- Previous post was at 09:42 PM ----------

    US is decreasing its defense spending. China, Russia and Iran are increasing. Hope the gap narrows down as much as possible.
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  4. Tshering22
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    Tshering22 ELITE MEMBER

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    Iran's decisive strategy for any confrontation would be to rely on more advanced missiles. Thousands of them. That's one thing that can seriously cause havoc among any opposing forces. China adopted the "Missile for asset" strategy and it seems to be working well.

    In fact, that is clever. Saves money, manpower and time. Only problem with Iran would be its limited missile positioning capabilities due to no global coverage of own military satellites. If Iran can overcome that challenge, it would greatly gain from the self-reliance.
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  5. agentny17
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    agentny17 FULL MEMBER

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    I am VERY surprised that Iran's Military Budget was just over $7 billion considering that Iran is not at peacful terms with some countires and is expecting a wat too. Iran also has good GDP, and cosidered an oil rich country. I am very surprised honstely!
  6. IranZamin
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    http://www.mehrnews.com/en/newsdetail.aspx?NewsID=1522851
    Iran raises defense budget 127 percent for next year
    TEHRAN, Feb. 1 (MNA) – President Mahmoud Ahmadinejad presented the administration’s draft of the national budget bill for Iranian calendar year 1391, which starts on March 20, to the Majlis on Wednesday.

    The proposed national budget amounts to about 5.1 quadrillion rials (approximately $416 billion). The national budget for the previous year had envisaged about 5.39 quadrillion rials of expenditures.

    Although, a small decrease is seen in the national budget compared to the national budget of the previous Iranian calendar year, the defense budget shows an increase of 127 percent.

    The administration has also allocated more money for development, research, and health projects.

    The budget for the running costs of the administration has been decreased by 5.6 percent and the administration’s tax revenues have been envisaged to go up by 20 percent.

    Next year’s national budget is based on an oil price of $85 per barrel and the value of the U.S. dollar has been estimated at 11,500 rials.

    The lawmakers should first approve the generalities of the draft budget bill, and then they will commence work on the examination of the details of the articles in Majlis committees in a process that may continue for a few weeks.


    AM/PA
    END
    MNA
  7. Arian
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    Arian ELITE MEMBER

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    Well, As far as I had read Iran's national budget bill presented to the parliament for 2009 Iran's budget for the Armed froces was around 18 Billion US dollars. I guess they have excluded the budget given to the IRGC and Basij in this figure.
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  8. Harry_Thomason
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    Harry_Thomason FULL MEMBER

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    According to Military Strength of Iran

    Iran's Defense Budget: $9,174 bln., that makes 21 bln. for 2012.

    Two more things to consider:

    1. Real defense budget is bigger, it was ~25 bln. for 2011 if we include all spenditures for military, police, R&D. Maybe even that doesnt cover everything, since some of semi-private companies are also involved in military industry.

    If we take 25 bln. + 127% = 56 bln.

    2. Iran's expenses cannot be directly compared to other countries, since its self-reliant and its extremely cheap for Iran to produce something with cheap labor and from local materials.

    In other words, what Iran makes for 10 bln., could easily be 50 bln. for another country which buys equipment. So if we take 21 bln. for 2012, its relatively 100+ bln. military spending for most of other countries, and if we take 56 bln. -> 280 bln.

    Bottom line: Iran is investing in military, relatively a lot, and I dont blame them, I would do the same (if not more :azn:).
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  9. Serpentine
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    Serpentine INT'L MOD

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    It's simple,first Iran tries to make all of it's military equipment in the country and that reduces the budget.That's why countries like UAE or Saudi Arabia in order have 2 times and 6 times more budget than Iran.
    Second,Iran's military doctrine is defensive,not offensive.
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  10. tombrady
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  11. Jade
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    Iran is setting its own trap. :disagree:
  12. Serpentine
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    Serpentine INT'L MOD

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    Why?Can you explain more?Is India setting it's trap by increasing it's defense budget?
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  13. true_indian
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    true_indian BANNED

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    I would have said yes, if it raised its budget expenditure by 127%. You crazy?
  14. kas786
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    Even with their 127% increase, you guys are spending more than twice of their defence budget.

    India 2011-2012 - $36.28 billion
    Iran 2011-2012 - $15.89 billion

    And don't forget to look at the situation Iran is in right now. Their defence capabilities could "make or break" the country at this point in time.
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  15. true_indian
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    true_indian BANNED

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    India's GDP is 1.85 trillion. Iran's 425 billion. Now you see the difference.