Minister: Azerbaijan not to reconsider 2016 state budget forecasts (UPDATE)

Business Materials 20 May 2016 19:35 (UTC +04:00)

Details added (first version posted at 16:03)

Baku, Azerbaijan, May 20

By Azad Hasanli - Trend:

Azerbaijan does not plan to reconsider the state budget forecasts for 2016, Samir Sharifov, Azerbaijan's finance minister, told reporters May 20.

Sharifov said Azerbaijan needs to maintain foreign exchange reserves sufficiently.

"Of course, the last year's experience showed that the fluctuations in the currency market, the pressure on the exchange rate, the sharp decline in foreign exchange reserves of the Central Bank of Azerbaijan force the government to collect a large amount of currency," said the minister.

"Therefore, taking that into account, we must conduct a more frugal budgetary policy," added Sharifov.

Earlier in February, Azerbaijani government reconsidered the state budget's parameters taking into account the oil price of $25 per barrel due to the sharp decline in oil prices in the world markets.

The budget forecasts for 2016 were approved in late 2015 taking into account the oil price of $50 per barrel.

According to the adjusted state budget, its revenues are projected at 16.822 billion manats (including centralized revenues of 16.056 billion manats and local revenues of 766.35 million manats) and expenses at 18.495 billion manats (including centralized expenses of 16.954 billion manats and local expenses of 1.541 billion manats).

The state budget deficit is expected to be 1.673 billion manats.