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Azerbaijan announces its state budget forecast for 2021

Finance Materials 3 September 2020 12:44
Azerbaijan announces its state budget forecast for 2021

BAKU, Azerbaijan, Sept. 3

By Zeyni Jafarov - Trend:

The revenues of the state budget of Azerbaijan are forecasted to be 24.3 billion manat ($14.2 billion), Trend reports.

This is reflected in the statement of the Azerbaijani Ministry of Finance on the preliminary indicators of the state and consolidated budgets for 2021.

According to the ministry, 57.3 percent of revenues or 13.9 billion manat ($8.1 billion) accounted for the oil sector, and 42.7 percent or 10.3 billion manat ($6 billion) – for the non-oil sector. Some 87.5 percent or 12.2 billion manat ($7.1 billion) of revenues are the transfers from the State Oil Fund of Azerbaijan (SOFAZ), and 12.5 percent or 1.7 billion manat ($1 billion) are revenues from the oil sector through tax authorities.

At the same time, when calculating the revenues of the consolidated and state budgets for 2021, the price of one barrel of oil was set at $35, based on a conservative approach.

State budget expenditures in 2021 are estimated at 25.8 billion manat ($15.1 billion). Of these, 18.1 billion manat ($10.6 billion) or 70.1 percent will be current expenditures, 5.3 billion manat ($3.1 billion) or 20.8 percent - capital expenditures, 2.3 billion manat ($1.3 billion) or 9.1 percent - expenses related to public debts and obligations.

In order to preserve the SOFAZ’s assets at a level that ensures economic security, a phased reduction in transfers to the state budget is envisaged. Starting from 2022, the decline in oil revenues is planned to be replaced by revenues from the non-oil sector.

Customs and tax incentives for the non-oil sector, the continuation of measures of state support for entrepreneurs and work to reduce the shadow economy will lead to a consistent increase in the share of non-oil incomes in the budget revenues in the medium term.

(1 USD = 1.7 AZN on Sept. 3)

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