You shouting "40% increase" is designed to give the impression that Iran spends more than the other nations, so the other nations had to increase their own spending in response. It's very misleading to state it that way without actual figures for context.
Even with a 40% increase in Iran's defense budget, Israel or Saudi Arabia individually invest more in arms than Iran, both in raw dollar terms, and in proportion of spending terms.
You can measure military spending several ways: raw spending, spending per % GDP, spending per-capita, and proportion of manpower in active duty (e.g. how many soldiers per citizen).
- Iran spends $14 billion total on defense, out of $393 billion in GDP (e.g. 3.5%), against a population of 80 million people (so $175 per person). 1 active soldier per 153 citizens.
- Israel spends $18 billion total on defense, out of $313 billion in GDP (e.g. 5.7%), against a population of 8.5 million (so $2117 per person). 1 active soldier per 48 citizens.
- Saudis spend $70 billion total on defense, out of $693 billion in GDP (e.g ~11%) against a population of 32 million (so $2187 per person). 1 active soldier per 46 citizens.
I will define a "military-focused" nation as being one that spends more on weapons, or a higher proportion of their GDP on weapons, or one that spends more per person, or one that puts a higher proportion of their citizens into military service than another nation. By all four measure, Iran is noticeably not a "military-focused" nation compared to typical nations in their region.
It's just more logical and reasonable to believe that Iran has noticed that Saudi Arabia spends $70 billion a year on weapons, and presses triple the proportion of their citizens into armed-service than they do, and that Iran increased their own spending from $10 billion to $14 billion to prop up their own self-defense in response. But even given the "40% increase" Iran is still less military-focused than either Israel or Saudi Arabia, when measured in terms of how much of their resources are directed to warfare-related stuff.