Azernews.Az

By Sara Rajabova

Despite sanctions imposed on Iran by the Western countries the country continues to strengthen its military power by unveiling new weaponry.

Thus, Iran will unveil a domestically made missile system similar to the Russian S-300 missile system in the next Iranian calendar year (March 2014-March 2015).

Necessary tests have been carried out on the Bavar-373 missile subsystems, Mehr news agency quoted army official Farhad Amiri as saying.

Although the U.S. hindered Iran from buying the Russian S-300 missile, the country started building it domestically, so that it will be inaugurated next year, according to Amiri.

Under a contract signed in 2007, Russia was required to provide Iran with at least five S-300 air defense systems.

Iran will also unveil new ballistic and cruise missiles in the first six months of the current Iranian calendar year, which started on March 21, Defense Minister Ahmad Vahidi said recently.

Vahidi also said that the new cruise missile will have a longer range compared with previous domestically manufactured cruise missiles.

In addition, he said that new bombs would be unveiled, a new submarine and a new missile-launching flying boat would be launched, and new helicopters, aircraft and unmanned aerial vehicles would be delivered to the country's armed forces in the first six months of the calendar year.

Meanwhile, Iran will expand defense expenditure by $5 billion to enhance its defense system.

Member of Parliament's Budget and Planning Commission Jafar Ghaderi said that Iran will allocate $5 million from the foreign exchange revenues to the Defense Ministry in order to boost the country's defense power, Fars news agency reported.

He also said that based on the current year's budget plan, the Oil Ministry can sell the gas extracted from oil wells at one third of the refined natural gas price.

The administration of President Mahmoud Ahmadinejad has submitted the national budget bill for the Iranian calendar year 1392, which started on March 21.

The proposed national budget amounts to about 7.3 quadrillion rials (approximately $595 billion), showing a 22-percent growth year on year.

According to Vice President Rahim Mombeini, Iran set the oil price at $95 in the current year's budget bill.

Mombeini added that the bill stipulates the oil price to be at least $100 in the current year.

The bill predicts the oil revenues to decrease by 40 percent compared to the current year's projected figure of 660 trillion rials (about $53.8 billion).

The funding for running the government was increased by 15.2 percent to 1.6 quadrillion rials (about $135 billion).

The bill also provides for the allocation of 900 trillion rials (about $73.4 billion) for the implementation of the second phase of the Subsidy Reform Plan, a 125-percent surge compared to the budget allocated for the first phase of the plan.