BAKU, Azerbaijan, Jan.6
By Zeyni Jafarov - Trend:
The projected indicator of the ratio of direct public debt to GDP for the past 2020 met the goal set by Azerbaijan's strategy, the Accounts Chamber stated in its opinion for the country’s 2021 state budget, Trend reports.
According to the chamber, the share of Azerbaijan's public debt in relation to GDP in 2020 was 23.3 percent. Ensuring the sustainability of public debt, taking into account the needs of the country's economy, both in the medium and long term, is identified as a priority strategic task. To this end, in the period from 2018 to 2025, the upper limit of the ratio of total public debt to GDP is expected to decrease by no more than 30 percent, and by 2025 - to 20 percent.
Despite the fact that the current upper limit of the ratio of total government debt to GDP has increased by 0.6 percentage points compared to 2019, the strategy continues to meet the set goal.
Earlier, Vusal Gasimli, CEO of the Center for Analysis of Economic Reforms and Communications of Azerbaijan, speaking about the economic and social results of 2020, said that although the attraction of new income sources in the fiscal phase reduces the budgetary burden of the non-oil real sector, it increases the risks of servicing the public debt.
Given that the ratio of public debt to GDP in Azerbaijan is 23.3 percent, which is 30 percent lower than that provided for in the strategy, in accordance with the current situation, the priority was chosen correctly.