Accessibility links

Breaking News

Iran Hikes Military Spending In Draft Budget

Iranian President Hassan Rohani has proposed more than a 33 percent increase in military spending in a 2015 draft budget sent to parliament.

Rohani proposed a budget on December 7 of some 8.4 quadrillion rials ($312.1 billion) for the fiscal year beginning on March 20.

Spending on defense will rise by 33.5 percent, to about 282 trillion rials.

Most of that amount is assigned to the elite Islamic Revolutionary Guards Corps (IRGC).

The draft budget is based on an oil price of $70 per barrel. The global price for oil last week was under $70.

Rohani told parliament in a speech that the budget was drafted "with a cautious eye to the oil prices."

Under an agreement with six world powers involved in talks over Iran's nuclear program, Tehran can access $700 million per month of frozen oil revenue held abroad.

Based on reporting by Reuters, AP, and AFP