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Iranian parliament approves 2% of government budget for military purposes

Business Materials 10 December 2014 17:16 (UTC +04:00)

Baku, Azerbaijan, Dec. 10

By Fatih Karimov - Trend: The Iranian parliament approved a bill, according to which the administration will be obliged to allocate at least 2 percent of the funding for running the government for defense purposes.

The administration is also obliged to deposit 10 percent of the income from imposing charges on civilian planes and 50 percent of the income from imposing charges on military planes, which is considered as the air transit income, to the Army's account for buying radar, navigation, and air defense systems.

The next Iranian calendar year will begin on March 21, 2015.

On Dec. 7, Iranian President Hassan Rouhani proposed a general budget of 8,400 trillion rials (about $250 billion) for the Iranian fiscal year starting March 20, 2015.

The proposed national budget amounts about 8.379 quadrillion rials (about $311 billion based on the official exchange rate of 26,930 rials), a 4 percent rise year on year. The funding for running the government was set at 2.673 quadrillion rials (about $99 billion).

Defense expenditure will rise 33.5 percent to about 282 trillion rials (about $8.2 billion), most of which will be assigned to the Revolutionary Guards.

Iran will hike military spending by more than a third in the next fiscal year despite presenting a "cautious, tight" budget to parliament in response to falling oil prices and punishing sanctions arising from the country's disputed nuclear program.

Edited by CN

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