BAKU, Azerbaijan, July 23. Azerbaijan is expected to improve the regulatory framework for fiscal stability for 2022-2026, and annual inflation rate under reference conditions will amount to four (plus/minus) two, as is stated in the "Socio-economic development strategy of the Republic of Azerbaijan for 2022-2026", Trend reports.
The document noted that the upper limit of the non-oil base deficit of the total budget to non-oil GDP would be 17.5 percent, while the assets of the State Oil Fund of Azerbaijan (SOFAZ) would be at a stable level by the end of 2026.
"Strengthening macroeconomic and financial stability is crucial for the sustainability of economic growth. The large strategic resources will reinforce the resilience of the national economy to external changes," the statement said.
By the end of 2026, public debt will account for nearly 20 percent of total GDP through providing the required financing through domestic borrowing. Out of total public debt, 10 percent will fall on the share of external public debt.
In the first half of 2022, the annual inflation in Azerbaijan totaled 12.9 percent, and the food price index increased by 19 percent.