Iran’s parliament security and foreign policy committee has approved a bill to strengthen the armed forces against Israel, mandating billions in funding from oil revenues, frozen foreign assets and air transit fees, its spokesperson said on Sunday.
Ebrahim Rezaei saidthe committee unanimously passed the draft titled “Strengthening the Armed Forces to Confront Crimes and Aggressions of the Zionist Regime.” The plan consists of one article and six clauses and was developed after expert reviews in the defense subcommittee.
According to Rezaei, the first clause obliges the Planning and Budget Organization and the Oil Ministry to fully disburse the defense allocations for the current budget year and the remaining unpaid portion of the 2024 defense budget.
The second clause requires the Planning and Budget Organization to provide the full annual share of resources for defense projects approved by the Supreme National Security Council, financed through savings in public expenditure or the transfer of oil revenues.
The third clause directs the Central Bank to make available up to €2 billion from blocked assets or other overseas currency holdings as zero-interest loans, guaranteed by the Planning and Budget Organization, or from the National Development Fund with the authorization of the Supreme Leader, to support emergency defense projects by the General Staff of the Armed Forces.
Rezaei added that the fourth clause requires the Planning and Budget Organization, in cooperation with the Central Bank and the Ministry of Economy, to provide another €2 billion for foreign purchases of major defense equipment, coordinated with the General Staff.
The fifth clause allows the Organization and the Oil Ministry to allocate$1.5 billion in oil to the armed forces.
The sixth clause stipulates that 30% of annual revenue from the use of Iran’s air corridors and air transit fees will be dedicated to strengthening the army’s air defense systems.
Rezaei said the committee’s approval “can address major concerns about strengthening the defense capacity of the armed forces” and would bring improvements in equipment, resources and the livelihood of military personnel. The draft will now go to the full parliament for debate in upcoming sessions.
Iran's government spokesperson announced a 200% increase in the military budget in October 2024, saying that the purpose of the move was to "strengthen the country's defense capabilities."
The budget for Iran’s armed forces was 7,220 trillion rials in last year’s budget bill. Given the exchange rate defined in that budget (330,000 rials per dollar), Iran’s military budget last year could be estimated at $15.7 billion.
Based on this, the allocated budget for Iran’s armed forces in the coming year could be estimated at $46 billion.
