Can Azerbaijani state budget be revised due to oil prices?

Business Materials 28 March 2017 11:57 (UTC +04:00)

Baku, Azerbaijan, Mar. 28

By Maksim Tsurkov – Trend:

Changes can be made to Azerbaijan’s state budget in 2017 in connection with the increase in oil prices in world markets and their level of above $50 per barrel, Ziyad Samadzade, chairman of the Azerbaijani Parliament’s Committee for Economic Policy, Industry and Entrepreneurship, told Trend.

He reminded that the price of oil is set at $40 per barrel in the 2017 state budget.

“However, now the real oil prices exceed the budgeted price. I think if this situation [the price exceeding $50] continues, the state budget can be revised,” Samadzade said.

He added that the draft on amendments to the state budget can be considered at a Parliament meeting in May.

At the same time, the Azerbaijani Ministry of Finance told Trend that currently, the issue of adjusting the budget forecasts is not on the agenda.

“At the moment, there is no work underway to prepare for the state budget adjustments. The fact that oil prices are higher than the budgeted price increases revenues of the State Oil Fund of Azerbaijan (SOFAZ). Transfers in the state budget remain at the planned level,” the ministry said.