BAKU, Azerbaijan, November 3. The Azerbaijani Parliament's Committee on Economic Policy, Industry and Entrepreneurship has launched discussions on the state budget for 2023, Trend reports.
Chairman of the Committee Tahir Mirkishili, Minister of Finance Samir Sharifov, Chairman of the Accounts Chamber Vugar Gulmammadov, Governor of the Central Bank Taleh Kazimov and participants are attending the discussions.
On October 24, the bill 'On the state budget of the Republic of Azerbaijan for 2023' was submitted to the Parliament. The project predicted state budget revenues for 2023 in the amount of 30.7 billion manat ($18.04 billion), growing by 5.2 percent against 2022, and 16.4 percent compared to 2021. This is the highest figure in the entire history of Azerbaijan.
Following the successful economic policy of Azerbaijan, the state budget income from the non-oil sector is steadily growing. The non-oil revenues for 2023 are projected at 14.4 billion manat ($8.46 billion), up by 5.6 percent against 2022 and 12.2 percent compared to 2021. Meanwhile, the non-oil revenue growth of the state budget helps reduce the State Oil Fund (SOFAZ) transfers to the state budget. In 2023, the state budget gains through SOFAZ will amount to 11.3 billion manat ($6.6 billion), thus dropping by 237.5 million manat ($139.6 million) against 2022.
While preparing the state budget for 2023, the price per barrel was taken equal to $50 given the oil price volatility in commodity markets. The project predicts state budget expenditures for 2023 worth 33.3 billion manat ($19.57 billion), which was one billion manat ($587.8 million) more than in 2022 and 5.9 billion manat ($3.46 billion) more than in 2021. The expenditures constituted the highest figure in the country's history like the revenues.
Restoring liberated lands and ensuring the "Great Return" are among the primary directions in the draft state budget for 2023. In this regard, the country records an annual surge in state budget allocations. In 2023, three billion manat ($1.76 billion) are expected to be provided for the recovery of the liberated territories. This figure is 12.4 percent more than in 2022 and 37.7 percent more than in 2021.
In addition, the country's defense capability and national security make up a major part of the state budget expenditures. The state budget for 2023 provides 5.3 billion manat ($3.1 billion) for these purposes, rising by 17.1 percent against 2021.
As in previous years, in 2023, it's scheduled to allocate 15.2 billion manat ($8.9 billion) to the social sector, up by 1.3 billion manat ($764.17 million) or 9.3 percent more than in 2022. The need criterion limit will rise by 23 percent year over year and will amount to 246 manat ($144.6). Thus, in 2023, the minimum subsistence level and the criterion of need will be equalized throughout the country. The state budget for 2023 envisages education spending of 4.4 billion manat ($2.58 billion), which was 536.5 million manat ($315.37 million) or 13.8 percent more compared to 2022, and 1.3 billion manat ($764.17 million) and 42.4 percent more than in 2021.
To ensure the country's food security, increase budgetary resources, stimulate the agricultural sector, and develop the leading sectors of agriculture, the state budget for 2023 provides funds in the amount of 1.2 billion manat ($705.39 million). This figure is 20.5 percent more than in 2022 and 32 percent more than in 2021.
Considering the growth dynamics of global food and non-food prices, the draft budget forecasted the allocation of funds of 625.2 million manat ($367.5 million) for food security measures in Azerbaijan, up by 38.6 percent compared to 2022.