BAKU, Azerbaijan, July 21. The World Bank forecasts an increase in Azerbaijan’s budget revenues in 2022, Trend reports.
“Amendments to the state budget for 2022 were approved on June 29, allowing a boost in budget spending. Revenues are projected to increase by 8.8 in nominal terms percent compared to the previous budget. This increase reflects higher projected non-energy tax receipts due to expected stronger activity and higher taxes from oil companies as the benchmark oil price for the budget is raised to USD 85 per barrel (from USD 50 under the previous assumption). Against the backdrop of higher revenue collection, transfers to SOFAZ are budgeted to be cut by 9.4 percent. Meanwhile, budget spending has been revised up by 8.1 percent. Over half of the spending increase will be directed to public investment for reconstruction while the rest will be spent on defense, social protection, and food security measures. The revised budget deficit is estimated at 2.7 percent of GDP in 2022,” reads the latest report released by the WB.
The Bank analysts note that Azerbaijan’s budget revenues increased by 17 percent in May.
“Oil revenues increased by 23.7 percent (yoy)in nominal terms, while non-oil revenues rose by 12 percent (yoy), partly driven by rising imports. Budget spending rose by 24 percent (yoy) in May in nominal terms, driven by capital spending (83 percent growth, yoy), while current spending rose modestly (6.1 percent, yoy). Overall, spending grew by 11.6 percent during the January-May period, compared to a year ago, which implies stagnation in real terms. The state budget recorded a deficit of AZN 526 million in May, while remaining in surplus during the first five months of the year (at 3.9 percent of GDP),” reads the report.
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