PBO confirms planned hike in next year’s military funding
Hamid Pourmohammadi, head of Iran’s Planning and Budget Organization (PBO), confirmed that the country’s military spending will see an increase next year, amid ongoing security threats following this summer’s conflict with Israel and the United States.
Pourmohammadi told reporters on Wednesday that “naturally, the defense budget will rise” in the coming fiscal year. His remarks come after Iran endured a 12-day war that erupted on June 13 when Israel launched strikes against the country, later joined by the US, targeting Iranian nuclear facilities. The conflict ended with a ceasefire, but Tehran says the threats to its national security remain.
The Iranian government had already sharply increased its defense budget for the current Persian calendar year (started March 21).
According to Iran’s budget law, military allocations nearly tripled compared to the previous year. The direct funding earmarked for the Armed Forces, including the Ministry of Defense, the Army, the Islamic Revolution Guards Corps (IRGC), and police forces, is estimated between $15.7 billion and $21.8 billion.
Government spokesperson Fatemeh Mohajerani announced after the approval of the budget law that the defense funding would rise by 200%, stressing the move was aimed at “strengthening the country’s deterrent power.”
Despite this rise, military spending in the Middle East remains dominated by Iran’s regional rivals. Saudi Arabia allocated $75.8 billion in 2023, ranking fifth globally after the US, China, Russia, and India. Israel followed with $27.5 billion, a 24% jump largely tied to its war in Gaza. Turkey, with $15.8 billion, ranked 22nd worldwide, still outspending Iran.