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SOFAZ to reduce transfers to state budget in 2016

Business Materials 14 September 2015 20:32 (UTC +04:00)
The transfers of the State Oil Fund of Azerbaijan (SOFAZ) to the state budget are expected to reach 6 billion manat or 4.388 billion manat (42.2 percent) less in 2016 than in 2015, the presentation of the state and consolidated draft budgets of Azerbaijan for next year, released by the ministry of finance, said.
SOFAZ to reduce transfers to state budget in 2016

Baku, Azerbaijan, Sept. 14

By Maksim Tsurkov - Trend:

The transfers of the State Oil Fund of Azerbaijan (SOFAZ) to the state budget are expected to reach 6 billion manat or 4.388 billion manat (42.2 percent) less in 2016 than in 2015, the presentation of the state and consolidated draft budgets of Azerbaijan for next year, released by the ministry of finance, said.

According to the draft, SOFAZ's revenues are projected at 6.71 billion manat in 2016, which is 3.53 billion manat (34.5 percent) less than the forecast for 2015.

SOFAZ's expenditure is projected at 8.2 billion manat, which is 33.4 percent (4.1 billion manat) less than the expected volume in 2015.

"Some 73.2 percent of SOFAZ's expenditure (6 billion manat) will be transferred to the state budget, 26.2 percent (2.15 billion manat) will be used to finance a number of infrastructure projects and 49.5 million manat (0.6 percent) will be transferred to finance the education of Azerbaijani youth abroad," the draft said.

The government of Azerbaijan has prepared three scenarios of the forecasts of the state budget and the country's socio-economic development for 2016, taking into account the oil prices in the range of $40 to $60 a barrel: a baseline scenario ($50 per barrel), an optimistic scenario ($60 per barrel) and a pessimistic scenario ($40 per barrel).

According to the forecasts, the GDP volume in the oil sector in 2015 will decrease by 1.7 percent and amount to 16.3 billion manat, while the value added production in the non-oil sector will increase by 3.4 percent compared to the current year and will be expected to reach 41.5 billion manat.

The share of oil sector in GDP in 2015 is projected at 28.3 percent versus 34.9 percent this year.

The sharp decline in oil prices on the world markets is the result of reducing the oil revenues transferred to the state budget.

The official exchange rate is 1.0475 AZN/USD Sept. 14.

Edited by CN

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follow the author on Twitter: @MaksimTsurkov

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