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Review of spending on housing and utilities in Azerbaijan

Finance Materials 22 May 2020 19:50 (UTC +04:00)
Review of spending on housing and utilities in Azerbaijan

BAKU, Azerbaijan, May 22

By Eldar Janashvili – Trend:

The expenditures in the field of housing and communal services in Azerbaijan increased on an annualized basis by 20.06 million manat that’s $11.8 million (0.6 percent), amounting to 334.4 million manat ($196.7 million) in 2019, which is 1.4 percent of all expenses, Trend reports referring to the Azerbaijani Finance Ministry’s report on budget execution in 2019.

Some 25.4 million manat ($14.9 million) was envisaged in the state budget for 2019 to provide the military personnel of the Azerbaijan Armed Forces who have served 20 years or more with apartments in the reporting year. This was fully implemented in the reporting year.

At the same time, 4.6 million manat ($2.7 million) was allocated to improve the living conditions of the military personnel in connection with the "strengthening of the material and technical support of the defense forces" and 18.6 million manat ($10.9 million) accounted for the expenses related to the reforms in the services sector.

In general, 48.6 million manat ($28.6 million) was spent from the state budget-2019 to provide this group of the population with housing.

Some 59.9 million manat ($35.2 million) was allocated from the state budget in 2019 for paying compensation to the military personnel who do not have apartments (including military personnel who are in reserve and retired).

The funds allocated for housing and communal expenses in 2019 were used to finance a number of targeted measures, including communication services, restoration and reconstruction of municipal infrastructure related to the settlements, improvement, collection, processing and treatment of waste, as well as on lighting of streets, parks, landscaping work and others.

In the structure of these expenses (excluding capital investments), the main part of expenses in the field of housing and communal services (77.2 percent) accounted for utility expenses worth 258.3 million manat ($151.9 million), expenses for housing services amounted to 49.4 million manat ($29.05 million), housing and communal services - 22.2 million manat ($13.05 million), water management - 4.6 million manat ($2.7 million) in accordance with the functional classification.

In accordance with the economic classification, excluding capital investments, slightly less than half (49.2 percent) accounted for the payment of landscaping services worth 164.5 million manat ($96.8 million), payment of products and to cover the damage caused to organizations - 66.4 million manat ($39.05 million), overhaul of roads - 39.3 million manat ($23.1 million), overhaul of the housing stock - 9.6 million manat ($5.6 million), other utilities - 33.4 million manat ($19.6 million), payments for the organizations - 16.1 million manat ($9.5 million), other expenses – 5.1 million manat ($3 million).

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