BAKU, Azerbaijan, Jan. 14
By Nargiz Ismayilova - Trend:
The main peculiarity of Azerbaijan’s budget for 2019 is that revenues' growth exceeded 4.5 percent, expenses turned out to be 3 percent less, and the budget deficit was 10 percent lower than predicted, Trend reports referring to Executive Director of Azerbaijan’s Center for Analysis of Economic Reforms and Communications Vusal Gasimli.
“These achievements were attained thanks to efforts undertaken under the leadership of the head of state to strengthen fiscal institutions and conduct tax and customs reforms, including through social insurance fees,” said Gasimli. “It was the result of this that the package of social reforms for 2.3 billion manat ($1.3 billion) didn’t affect the manat exchange rate and inflation.”
The director noted that consolidated budget revenues increased by 15.7 percent, while expenses decreased by 3 percent, as a result, the surplus amounted to 7.3 billion manat ($4.2 billion).
“The surplus of the consolidated budget determines the growth of strategic foreign exchange reserves of the state,” Gasimli added. “In the formation of the surplus, an important role was played by the growth of revenues from the non-oil sector, the increase in oil prices by $5 above the forecast, the increase in income from the asset management of the oil fund.”
“The head of state also gave instructions in connection with the management of public debt,” said the director.
“Fiscal rules, medium-term expenditure framework, government debt strategy, improving tax and customs administration, increasing fiscal discipline and other financial mechanisms generally increase fiscal sustainability,” Gasimli noted.
($1= 1.7 manat on Jan. 14)