Iran’s budget for the new fiscal year starting on March 20 should be cut by 5.6 percent and defense spending more than doubled, the Mehr news agency cited the Islamic Republic’s President Mahmoud Ahmadinejad as saying.
Ahmadinejad presented a government-proposed draft budget, worth 5.1 quadrillion rials (about $416 billion), to parliament on Wednesday. Last year’s budget was worth 5.4 quadrillion rials.
Defense spending will be increased 127 percent and more money will be allocated for scientific research and healthcare.
The budget is based on an average oil price of $85 per barrel; the U.S. dollar’s average value is projected at 11,500 rials.
Experts say the budget’s revenues may be reviewed against the backdrop of sanctions imposed on Tehran by the United States and the EU.
The West suspects Iran is pursuing a secret nuclear weapons program but the Tehran insists it needs nuclear power solely for the generation of electricity.
