Revenues, expenditures of Azerbaijani state budget for 2016 to increase (UPDATE)
Baku, Azerbaijan, Jan. 24
Revenues and expenditures of Azerbaijani state budget for 2016 will increase, said the country's Finance Minister Samir Sharifov in an interview to ANS TV channel.
He said the revenues will be increased by 1.9 billion manats (to 16.4 billion manats), while the expenses will be increased by 1.95 billion manats (to 18 billion manats).
"The deficit of the state budget is forecast to be at 1.5 billion manats," Sharifov said. "The main sources of covering the budget deficit are the savings at the end of last year, 1.4 billion manats, as well as the manat bonds, which are planned to be released on to the market this year."
Forecasts of the budget prepared taking into account the oil price at $25 per barrel.
The Minister noted that the reason for amending the budget is adjusting the exchange rate of manat.
"Another depreciation of manat in December 2015 made a number of changes in the budget forecasts necessary. First of all, expenditures of the country denominated in foreign currencies increased. This is the cost of external debt management, financing of our diplomatic missions abroad, the payment of membership fees to international organizations and also implementation of our other foreign currency liabilities. All these costs should be reflected in the state budget with consideration of new AZN to USD exchange rate ", he said.
In addition, according to Sharifov, in connection with the devaluation of the manat inflationary pressures, raising a number of prices observed which made it necessary to increase the number of social benefits.
"The President has already issued a number of decrees and orders to increase social benefits and salaries. It is expected in the near future to sign several orders - to increase unemployment benefits, scholarships and for a number of other social measures. There must be some funds in the state budget for all these, but they are not included among the approved last year", Sharifov added.
He also noted that it is planed to allocate more than one billion manat in order to increase social benefits and salaries.