The government has offered the parliament to amend the state budget for fiscal year 2016, because of the new situation at the world oil markets.
The current state budget of Azerbaijan, which was approved by President on December 7, 2015, was based on the average annual oil price of $50.00 per barrel. In January 2016 average export price of Azerbaijani oil was $32.00 per barrel and the international energy agencies have corrected the forecasts for this year – they reduced their average oil price from $53.00-57.00 down to $37.00-45.00. Therefore, the Azerbaijani government decided to amend the state budget for fiscal year for 2016 and base the budget on an average annual oil price of $25.00 per barrel.
According to the proposed amendments of the state budget of Azerbaijan, within the production sharing agreements (PSA) oil companies will pay only 370 million AZN (about $231 million at the current rate) to the state budget. Last year they paid about 670 million AZN. The payments of State Oil Company of Azerbaijan (SOCAR) were reduced to 1.24 billion AZN. In 2015 SOCAR paid 1.48 billion AZN to the state budget.—0—
Economics
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Azerbaijan has introduced new rules to simplify the leasing of agricultural land on liberated territories, aiming to attract investments and enhance agricultural productivity, according to a presidential decree issued on November 27, 2024.
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The Asian Development Bank (ADB) allocated $10.5 million to support the retail sector in Azerbaijan, marking another step in its ongoing support for the country’s economic modernization. These investments align with Azerbaijan's broader ambitions to diversify its economy and strengthen small and medium-sized enterprises (SMEs), which are key pillars of sustainable growth.
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At today’s session of the Milli Majlis, Azerbaijan’s parliamentarians discussed and approved in the first reading a draft law increasing the minimum subsistence level for 2025. The updated figures reflect a modest rise of 10 manats, setting the nationwide living wage at 285 manats. For specific demographics, the levels are 305 manats for the working population, 232 manats for pensioners, and 246 manats for children. The same session also approved the criterion of need at 285 manats for the coming year, aligning it with the national living wage.
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This year, the plans of the Australian holding Fortescue Future Industries (FFI) for developing "green" projects in Azerbaijan have been adjusted, though negotiations initiated two years ago are ongoing, an informed source told Turan.
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