Ahmedinejad presents new budget
President Mahmoud Ahmedinejad presented the 2012 – 2013 budget on Wednesday to parliament.
The president predicts that the economy will grow by 8% in the next twelve months despite economic sanctions, including the recent decision by the European Union to place an embargo on Iranian oil contracts.
The state budget for 2012 – 2013 will be $416 billion (£262.7bn; €316.6bn), about 14% less than the previous budget.
The president said that plans were being developed to drastically reduce the country’s dependency on oil revenues. He said that taxes would rise by 20% and non oil revenues by 89%.
Perhaps unsurprisingly, the president informed the parliament that defence spending was to increase by 127%. This will most likely be in the areas of ‘exporting the revolution’ through the Iranian Revolutionary Guard’s elite Quds Force, further missile development work and strengthening their naval forces.