Rouhani's Deputy Confirms Reduction of Iran's Military Budget; 'The Country's Revenues Are Limited'

The parliamentary deputy of Iran's president reacted to the criticism from the chief of staff of the armed forces regarding the reduction of the military budget for the year 1395 (2016) by stating that the country's revenues are 'limited' and the government must adjust the budget in a way that is 'feasible and realistic.' According to ISNA news agency, Hossein Ali Amiri emphasized on Tuesday, July 29, that the 'real needs' of military and governmental agencies exceed the current budgets, but the government also faces 'limitations and obstacles.' Mr. Amiri stated that the government is 'forced' to adjust the budget to be 'feasible and realistic.' On Monday, Hossein Naqavi Hosseini, spokesman for the National Security and Foreign Policy Commission of the Parliament, announced that the chief of staff of the armed forces requested that Article 22 of the 1395 budget law not be removed during a commission meeting. According to Naqavi Hosseini, Mohammad Hossein Baqeri stated in this meeting that the armed forces should not have 'livelihood concerns' and 'we only demand the implementation of the law and the realization of their legal rights.' According to Article 22 of the 1395 budget law, the Central Bank is obligated to deposit all foreign currency amounts returned from lawsuits in international courts and foreign countries related to military contracts before and after the revolution, up to 5 trillion tomans, into the military budget items of Iran. In recent weeks, several members of Parliament announced that the government had removed this article. Following these criticisms, the Management and Planning Organization announced that all 1.7 billion dollars obtained from 'resolving the lawsuit regarding military purchases after 30 years' was spent in 1394 (2015) within the framework of the budget law, and no amount remained for 1395. This organization described the 'allocation of such a fictitious amount' to the armed forces as a 'noteworthy' action in its announcement. The Management and Planning Organization also stated that allocating this amount to the military budget is contrary to 'national interests' and that this action 'could lead to abuse and create opportunities for other countries to make excuses, and practically disrupt the release of assets resulting from the Islamic Republic of Iran's lawsuits in international courts.' Members of the ninth and tenth Parliaments have approved measures to increase Iran's military budget after the Vienna nuclear agreement. Meanwhile, members of Parliament approved a measure in a public session on July 27 that, if approved by the Guardian Council, at least five percent of the country's general budget will be added to the defense budget each year. According to reports, Iran's military budget in 1395 is more than 34 trillion tomans. Some analysts say that the profits of companies affiliated with the Ministry of Defense and organizations like the Revolutionary Guards are not calculated in the country's military budget, and when they are included, this budget will exceed the amount announced in the government's bill and the Parliament's resolution. However, some members of Parliament have previously stated that Iran's military budget is lower compared to neighboring countries and should be increased. According to a report by the International Peace Research Institute, Saudi Arabia had the highest military expenditure in 2015, exceeding 87 billion dollars, which is double the military budget of that country in 2006, following the United States and China.