The economic situation of the Iranian people does not require much explanation or economic interpretation. It is not even necessary to assess Iran’s economic conditions using norms, statistics, and charts. The best and most painful measure is the people’s tables and pockets, which are truly empty. The people of Iran feel the economic pressures intensely.
However, some news and analysis reveal how the regime uses the people’s resources. Ahmad Vahidi, the Minister of Interior of the regime, disclosed on June 12, during a session titled “Police Commanders Conference,” that former regime president Ebrahim Raisi, in addition to the annual budget, allocated a substantial extra budget to the police force.
He said: “For example, in the police force, when Mr. Raisi felt that there was a need for police facilities, he personally approved in the High Council meeting to allocate a significant amount for equipment, which was a very good number, and now its mechanisms need to be implemented gradually within the police force. Nearly 7 billion euros were approved.” (June 12 – State television).
Ebrahim Raisi allocated 6 billion euros to the police force, while its annual budget was approximately 1.5 billion euros, meaning this repressive force will receive four times its annual budget in additional funds.
A glance at the figures
A deeper look at this number reveals that 6 billion euros is over 3.8 trillion rials. This amount is equivalent to one year’s salary for 4.5 million minimum-wage earners. This money is also equivalent to one year’s salary for 3.2 million retirees.
With this money, 700,000 housing units of 60 square meters each can be built (the cost of building a house per square meter is 80 to 120 million rials according to Setareh Sobh Newspaper on December 25, 2023).
With this money, up to 400,000 sustainable jobs can be created. This amount is equivalent to the total wheat consumption of the Iranian people for two years (approximately 13 million tons of wheat are consumed annually in Iran). Iran consumes 1.7 million tons of oil annually, and with the global price of $1,300 per ton, its annual cost is $2.21 billion, meaning with the extra budget given to the police force, the oil consumption cost of Iran for three years can be paid.
The people of Iran consume 2.9 million tons of rice annually, costing $2.15 billion, and the budget given to the police force is nearly three times this amount. With this money, 16,500 standard 40-classroom schools can be built (according to Hamdeli newspaper on September 5, 2022, there are more than 30,000 schools in Iran, including 160,000 unsafe and worn-out classrooms. This is in addition to 12,000 portable and mud-brick classrooms, meaning approximately 5 million students are constantly under safety threats in schools).
The money given to the police force exceeds this year’s development budget. The development budget for this year, on paper, is 3.75 trillion rials, which has never been fully funded in any year. Statistics show the enormous amount of money channeled to the police force.
Budget deficit and rising prices for the people, 6 billion euros for the police force
Raisi had repeatedly claimed that he has no budget deficit, but the regime’s media have always undermined this claim. Recently, Mahmood Jamasaz, a regime economist, estimated the regime’s budget deficit at 11 trillion rials (source: Jamaran website, June 11, 2024).
It is evident that a part of this massive budget deficit is the 3.8 trillion rials given to the police force, meaning the regime secures funds in euros and dollars for its repressive forces and prints money to compensate for it. Printing money means increasing inflation and prices and taking from the people’s pockets, meaning the regime empties the people’s pockets and gives it to the police force to motivate them to further repress the people.
An important fact
The reality is that the regime’s state forces are severely weakened, the society is very dissatisfied and protesting, and the regime is facing a storm of crises and challenges. Therefore, it tries to create motivation and means for more repression by paying more money and providing more facilities to its repressive forces. However, in an explosive society, these measures are not decisive. The people’s protests continue every day and night, so what the regime fears, namely the uprising of the people, will come upon it.