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Iran's military budget is growing: What does that mean for the Middle East?

Almost Heaven

Well-known
Iran says it is planning to raise its military budget by two hundred percent, which would essentially triple its defense spending. This should raise eyebrows in the region and could lead to an arms race. Reports say that Iran’s government spokesperson Fatemeh Mohajerani declared on Tuesday, October 29, the goal of this major raise in the budget.

When the issue of the defense budget came up, the spokesperson said, “We considered a 200 percent increase in the defense base in the next year's budget.” The wording of the statement leaves it open to change. Mohajerani quickly moved on from discussing the defense budget to discussing Israel’s threats to Iran. “The Iranian people are not war-seekers and are peace-seekers. Iran is looking for peace, and our busy foreign minister is looking to explain our positions correctly and minimize threats and tension,” she said.

Iran has increased its defense budget in the past, but not by nearly as much. Radio Free Europe reported in 2022, “Iran increased its military spending by 11 percent, making it the 14th largest military spender last year. It was the first time in two decades that Iran ranked among the top 15 military spenders.”

The 2022 reports said that this amounted to $24.6 billion in spending. “The budget allocated for the country’s Revolutionary Guard, or IRGC, grew by 14 percent compared to 2020 and now accounts for 34 percent of Iran’s total military spending,” Iran International noted. The 2022 reports were based on the data of the Stockholm International Peace Research Institute (SIPRI).

Since the 2022 report it appears the budget fluctuated. The 2023 budget was less than in 2021. SIPRI concluded that “Iran was the fourth largest military spender in the Middle East in 2023 with $10.3 billion. According to available data, the share of military spending allocated to the Islamic Revolutionary Guard Corps grew from 27 per cent to 37 per cent between 2019 and 2023.”

A report at Global Voices in 2024 said, “In 2024, Iran’s defense budget is set to reach USD 16.7 billion — a 20 percent increase from the previous year and comprising 25 percent of the national budget according to recently published data by Iran Open Data Center. This substantial rise in military expenditure comes at a time when Iran’s economy is struggling with soaring inflation and declining purchasing power.” The Emirates Policy Center published an article in 2023 noting, “Even with Iran’s economy hitting rock bottom, its military sector still got a significant slice of the pie (21 percent) in the Iranian New Year budget, showing the regime’s commitment to its military and armament agenda.”
 
After Israel bombs the nuke sites, oil fields, and some critical infrastructure Iran won't have the money to finance their military to any level that will concern anyone.
 
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