Iran Allocates Nearly $2B For Judiciary Amid Economic Challenges

The Iranian parliament approved a budget allocation of 980 trillion rials for the judiciary and its affiliated organizations amidst human rights abuses and crackdowns.

The allocation, amounting to roughly $1.8 billion, is intended to bolster the functioning of the judicial system, currently facing scrutiny for human rights violations and the issuance of death sentences, prompting widespread international condemnation.

The decision comes while only 35 trillion rials, equivalent to around $85 million, was designated for conserving and protecting natural resources.

The total government budget will reach 24,290 billion rials ($49.2 billion) next year, which shows an increase of 16.7 percent compared to this year’s budget.

Despite assertions from the government regarding a balanced budget, concerns over deficits persist. Estimates from various sources, including the Iran Chamber of Commerce, Industries, Mines and Agriculture, suggest a significant deficit, with figures ranging from 4.5 quadrillion rials (approximately $9 billion) to as high as $22 billion, according to a report by the parliament's research center cited by economic website EcoIran.

Iran's economy continues to grapple with challenges, exacerbated by the United States' withdrawal from the Joint Comprehensive Plan of Action (JCPOA) nuclear accord in 2018 and subsequent sanctions. However, underlying economic issues predate the geopolitical developments, with mismanagement of oil revenues since the 1990s contributing to the current economic strain. Despite generating substantial oil revenues estimated at around $1.5 trillion over the past two decades, Iran faces economic difficulties, with the government controlling a significant portion of the economy.