Main directions of expenditures of Azerbaijan’s state budget for 2022 revealed

Economy Materials 10 November 2021 14:12 (UTC +04:00)

BAKU, Azerbaijan, Nov. 10

By Sadraddin Aghjayev - Trend:

The main expenditures of Azerbaijan’s state budget for 2022 were established and determined within the framework of the implementation of the project "Azerbaijan 2030: National Priorities for Socio-Economic Development", which will amount to about 30 billion manats ($17.6 billion) next year, Trend reports referring to the draft state budget of Azerbaijan for next year.

According to the information, Azerbaijan’s state budget expenditures in 2022 will be mainly focused on the main functions of the state, including defense and security, social security, health care, education, servicing the public debt, as well as supporting the sustainability of economic growth.

It is noted that when forecasting costs, factors such as ensuring a decent level of wages, providing preferential mortgage loans and building social housing, further improving the social status and living conditions of war veterans, families of martyrs and disabled people, bringing the healthcare system in line with modern standards, a continuation of COVID-19 vaccination measures, restoration work in the liberated territories, creation of economic zones in a more modern and innovative format, further strengthening of the country's defense and security, organization of mine clearance, further development of the defense industry, as well as improvement of the education system for the formation of competitive human capital were taken into account.

It is reported that activities in these areas will account for about 49.3 percent of the funds from the state budget.

In addition, state budget expenditures will be aimed at diversifying the economy, accelerating the development of the non-oil sector, transitioning to a ‘green economy’, implementing initiatives to decarbonize and expand the use of alternative energy sources, the draft budget notes.

Debt servicing was analyzed when forecasting expenditures for the next year based on possible assumptions.

"Next year, a decrease in the cost of servicing the public debt and an increase in operating costs from 63.1 percent to 67.1 is predicted. This growth is associated with population growth and other factors affecting the growth of social spending," the project says.

The draft state budget notes that the main factor in the growth of non-oil GDP in the coming years will be an increase in investments, as well as financing and promotion of public-private partnerships.

"In addition, it is expected that capital expenditures will gradually decrease due to the private sector. It is projected that the share of expenses related to servicing the public debt will decrease by 1.7 percent - to six," draft state budget for 2022 notes.


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