Editing Economy of Iran (section)

== Fiscal and monetary policy ==
{{Main|Politics of Iran#Public finance and fiscal policy|Taxation in Iran|Central Bank of Iran#Inflation and monetary policy|l1=Public finance and fiscal policy in Iran|l3=Inflation and monetary policy in Iran}}

Since the 1979 revolution, [[Government of Iran#Public finance and fiscal policy|government spending]] has averaged 59% on social policies, 17% on economic matters, 15% on [[military of Iran|national defense]], and 13% on general affairs.<ref name="LOC5" /> Payments averaged 39% on [[education in Iran|education]], [[healthcare in Iran|health]] and [[Social Security Organization (Iran)|social security]], 20% on other social programs, 3% on [[Agriculture in Iran|agriculture]], 16% on [[water supply and sanitation in Iran|water]], [[List of power stations in Iran|power and gas]], 5% on [[Mining in Iran|manufacturing and mining]], 12% on [[Transport in Iran|roads and transportation]] and 5% on other economic affairs.<ref name="LOC5" /> Iran's [[capital investment|investment]] reached 27.7% of GDP in 2009.<ref name="CIA"/> Between 2002 and 2006, inflation fluctuated around 14%.<ref name="IndexMundi">{{cite web |url = http://www.indexmundi.com/iran/inflation_rate_(consumer_prices).html |title = Iran Inflation Rate |publisher = Index Mondi |year = 2009 |access-date = February 5, 2011 }}</ref>

In 2008, around 55% of government revenue came from [[Ministry of Petroleum (Iran)#Revenues from crude oil|oil and natural gas revenue]], with 31% from [[Taxation in Iran|taxes and fees]].<ref name="payvand.com">[http://www.payvand.com/news/08/jan/1250.html "Crude price pegged at dlrs 39.6 a barrel under next year's budget"] {{Webarchive|url=https://web.archive.org/web/20110622092858/http://www.payvand.com/news/08/jan/1250.html |date=June 22, 2011 }}. ''[[IRNA]]'', January 27, 2008. Retrieved December 5, 2008.</ref><ref>[http://webarchive.nationalarchives.gov.uk/20080611134119/http://www.fco.gov.uk/en/about-the-fco/country-profiles/middle-east-north-africa/iran?profile=economy&pg=2 Iran's entry]. Foreign and CommonWealth Office (2010). Retrieved June 21, 2009.</ref> There are virtually millions of people who do not pay [[Taxation in Iran|taxes in Iran]] and hence operate [[informal economy|outside the formal economy]].<ref name="CIA"/> The budget for [[Iranian calendar|year 2012]] was $462 billion, 9% less than 2011.<ref name=BusinessWeek>[http://www.businessweek.com/ap/2012-05/D9UQDHR80.htm Iran's parliament approves $462 billion budget] {{webarchive |url=https://web.archive.org/web/20130718212621/http://www.businessweek.com/ap/2012-05/D9UQDHR80.htm |date=July 18, 2013 }}. [[Associated Press]]. Retrieved May 19, 2012.</ref> The budget is based on an [[oil price]] of $85 per barrel. The value of the US dollar is estimated at [[Iranian rial#Value|IRR]] 12,260 for the same period.<ref name=BusinessWeek />

According to the head of the Department of Statistics of Iran, if the [[Budget process|rules of budgeting]] were observed the government could save at least 30 to 35% on its expenses.<ref>[http://www.payvand.com/news/10/may/1316.html Ten Million Iranians Under "Absolute Poverty Line"] {{Webarchive|url=https://web.archive.org/web/20120105030221/http://www.payvand.com/news/10/may/1316.html |date=January 5, 2012 }}. Radio Zamaneh. Retrieved May 5, 2011.</ref> The central bank's [[Banking in Iran#Rates|interest rate]] is 21%, and the [[Central Bank of Iran#Inflation and monetary policy|inflation rate]] has climbed to 22% in 2012, 10% higher than in 2011.<ref>[http://www.jpost.com/IranianThreat/News/Article.aspx?id=265498 Experts: Steinitz exaggerates on Iran economy]. ''The Jerusalem Post'', April 10, 2012. Retrieved April 18, 2012.</ref> There is little alignment between [[Government of Iran#Public finance and fiscal policy|fiscal]] and [[Central Bank of Iran#Inflation and monetary policy|monetary policy]]. According to the [[Central Bank of Iran]], the [[social class in Iran|gap between the rich and the poor]] narrowed because of [[Iranian targeted subsidy plan#Plan revision|monthly subsidies]] but the trend could reverse if high inflation persists.<ref name=FT4>[http://www.ft.com/cms/s/0/a6ac4438-8ebe-11e1-ac13-00144feab49a.html#axzz1t6ompQP1 Najmeh Bozorgmehr: Subsidy dispute adds to Iran's woes]. ''Financial Times'', April 25, 2012 (subscription required). Retrieved April 25, 2012.</ref>

Iran had an estimated $110 billion in [[foreign reserves]] in 2011<ref name=F10>[http://english.farsnews.com/newstext.php?nn=8101300065 Minister: Iran Facing No Problem in Currency Reserves, Revenues] {{webarchive |url=https://web.archive.org/web/20120419001302/http://english.farsnews.com/newstext.php?nn=8101300065 |date=April 19, 2012 }}. Fars News Agency, April 18, 2012. Retrieved May 2, 2012.</ref> and balances its [[balance of payment|external payments]] by pricing oil at approximately $75 per barrel.<ref>[https://www.pbs.org/wgbh/pages/frontline/tehranbureau/2010/10/iran-primer-the-oil-and-gas-industry.html The Oil and Gas Industry]. ''Iran Primer'' (PBS), October 26, 2010. Retrieved October 27, 2010.</ref> As of 2013, only $30 to $50 billion of those reserves are accessible because of current sanctions.<ref name=ABC>{{cite news |url = https://abcnews.go.com/Politics/wireStory/sanctions-biting-iran-budging-20044000 |title = Sanctions Biting but Iran Not Budging |date = August 23, 2013 |work = [[Associated Press|AP]] |author = Marjorie Olster |access-date = August 24, 2013 }}</ref> [[Iranian media]] has questioned the reason behind Iran's government non-repatriation of [[Central Bank of Iran#Foreign reserves|its foreign reserves]] before the imposition of the [[United Nations Security Council Resolution 1929|latest round of sanctions]] and its failure to convert into [[gold bullion|gold]]. As a consequence, the [[Iranian rial]] lost more than 40% of its value between December 2011 and April 2012.<ref name=FT4 />

Iran's external and fiscal accounts reflect falling oil prices in FY 2012, but remain in surplus. The current account was expected to reach a surplus of 2.1% of GDP in FY 2012, and the net fiscal balance (after payments to Iran's [[National Development Fund]]) will register a surplus of 0.3% of GDP.<ref name=EIU5 /> In 2013 the [[external debt]]s stood at $7.2 billion down from $17.3 billion in 2012.<ref>[http://www.payvand.com/news/13/may/1206.html Iran's external debts cut by $10b, hit $7.2b: Central Bank Chief] {{Webarchive|url=https://web.archive.org/web/20180616030502/http://www.payvand.com/news/13/may/1206.html |date=June 16, 2018 }}. ''Tehran Times'', May 27, 2013. Retrieved August 24, 2013.</ref> Overall [[fiscal deficit]] is expected to deteriorate to 2.7% of GDP in FY 2016 from 1.7% in 2015.<ref name=IMF111>[http://www.imf.org/en/News/Articles/2016/10/03/MS100316-Iran-Concluding-Statement-of-an-IMF-Staff-Visit Iran: Concluding Statement of an IMF Staff Visit]. IMF, October 3, 2016. Retrieved October 10, 2016.</ref>

[[Central Bank of Iran#Money supply|Money in circulation]] reached $700 billion in March 2020 (based on the 2017 [[Iranian rial#Value|pre-devaluation exchange rate]]), thus furthering the decline of the [[Iranian rial]] and rise in inflation.<ref>{{Cite web|url=https://en.radiofarda.com/a/iran-s-money-supply-skyrockets-parallel-to-inflation/30671910.html|title = Iran's Money Supply Skyrockets Parallel to Inflation|website=En.radiofarda.com| date=June 15, 2020 }}</ref><ref>{{Cite web|url=https://en.radiofarda.com/a/government-debt-deficit-money-supply-soar-iran-central-bank-reveals/30434199.html|title = Government Debt, Deficit, Money Supply Soar, Iran Central Bank Reveals|website=En.radiofarda.com| date=February 14, 2020 }}</ref>

=== Defense related burden ===
According to official data, as of 2023 Iran spends 10.3 billion [[United States dollar|USD]] or 2.1% of its [[GDP]] on national defense. This percentage is similar to that in other countries such as [[United Kingdom|UK]], [[France]] and [[Finland]].<ref>{{Cite report |url=https://www.sipri.org/publications/2024/sipri-fact-sheets/trends-world-military-expenditure-2023 |title=Trends in World Military Expenditure, 2023 |date=April 2024 |publisher=SIPRI |language=en}}</ref>
[[File:Iran_Ministry_of_Defense_New_Weapons_Ceremony_and_Young_Soldier_Festival_(014).jpg|thumb|Iran Ministry of Defense New Weapons Ceremony and Young Soldier Festival]]
In 2025, the Iranian budget bill granted 51% of the total oil and gas export revenues, estimated at 12 billion euros, to the [[Islamic Revolutionary Guard Corps|Islamic Revolutionary Guard Corps (IRGC)]] and the [[Law Enforcement Command of the Islamic Republic of Iran|Law Enforcement Command]]  (LEF).<ref>{{Cite web |last=Khatinoglu |first=Dalga |date=2024-10-24 |title=Iran's Armed Forces to receive 51% of government's oil export revenues |url=https://www.iranintl.com/en/202410232813 |access-date=2025-01-07 |website=iranintl.com |language=en}}</ref><ref>{{Cite web |title=Iran plans to increase military budget by 200 percent |url=https://www.aljazeera.com/news/2024/10/29/iran-plans-to-increase-military-budget-by-200-percent |access-date=2025-01-07 |website=Al Jazeera |language=en}}</ref>

Iran also finances [[Hezbollah]], the [[Houthi movement|Yemeni Houthis]], Iraqi militia, and [[Hamas]]. The average annual budget reserved for the funding of [[Funding of the Axis of Resistance|Iran's proxies]] is estimated at US$1.6 billion.<ref>{{Cite web |date=2025-01-13 |title=Iran's Islamist Proxies in the Middle East {{!}} Wilson Center |url=https://www.wilsoncenter.org/article/irans-islamist-proxies |access-date=2025-01-07 |website=www.wilsoncenter.org |language=en}}</ref> According to Syrian opposition sources, starting from the beginning of 2011, Iran allocated a total of US$50 billion to maintain the [[Bashar al-Assad|Assad]] regime in [[Syria]]. However, this investment proved to be a failure following the eventual collapse of the regime.<ref>{{Cite web |title=Deep Dive: Syria's foreign debt to Iran |url=https://amwaj.media/article/deep-dive-syria-s-foreign-debt-to-iran |access-date=2025-01-09 |website=Amwaj.media |language=en}}</ref><ref>{{Cite web |last=Rasmussen |first=Sune Engel |title=Iran Suffers Blow of 'Historic Proportions' With Assad's Fall |url=https://www.wsj.com/world/middle-east/syria-iran-assad-axis-of-resistance-6289667a?page=1 |access-date=2025-01-09 |website=WSJ |language=en-US}}</ref>

The most costly of Iran's defense expenditures is its nuclear program. The estimated total cost of Iran's [[Nuclear program of Iran|nuclear program]] until 2025 approaches US$500 billion.<ref>{{Cite web |last=Qaed |first=Anas Al |date=2021-04-25 |title=Iran's Nuclear Program Might Not Be Worth the Cost |url=https://gulfif.org/irans-nuclear-program-might-not-be-worth-the-cost/ |access-date=2025-01-07 |website=Gulf International Forum |language=en}}</ref><ref>{{Cite web |date=2024-10-04 |title=Opinion: The true cost of Iran's nuclear gamble |url=https://www.yahoo.com/news/opinion-true-cost-iran-nuclear-192742262.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJdxDcmLCCDVgIlY89vFafKkcXWr2CUyteFSnRPoW-Vsyk-Cx-LBhwAtoDWJqzmhoE6Piz9IGkOQys7rz6kQHMglDwQwUbLZGRXAiZuiYwotnA98dmqh4cXUwbEASr7Sqc8XskRRPWaC4LpIeYuT2M-9xbbXamQKnsSfu2KYFAdH |access-date=2025-01-12 |website=Yahoo News |language=en-US}}</ref> As a result of its nuclear program Iran is subject to international [[International sanctions against Iran|sanctions]], causing a long-term economic stagnation which cost Iran an additional US$1.2 trillion over 12 years.<ref>{{Cite web |date=2024-06-24 |title=Sanctions Cost Iran $1.2 Trillion Over 12 Years, Businessman Says |url=https://www.iranintl.com/en/202406244025 |access-date=2025-01-07 |website=iranintl.com |language=en}}</ref><ref>{{Cite web |last=Khatinoglu |first=Dalga |date=2021-12-05 |title=How Much The Nuclear Program Has Impoverished Iran |url=https://www.iranintl.com/en/20211205244208 |access-date=2025-01-07 |website=iranintl.com |language=en}}</ref> Furthermore, the sanctions led to a significant decline in [[foreign direct investment]]s (FDI), with Iran experiencing a reduction of approximately 80% in FDI between 2011 and 2021.<ref>{{Cite web |title=Iran Foreign Direct Investment, 1997 – 2024 {{!}} CEIC Data |url=https://www.ceicdata.com/en/indicator/iran/foreign-direct-investment |access-date=2025-01-09 |website=www.ceicdata.com}}</ref>