Forecasts of government to cut the budget deficit by 2017 unlikely

The government of Azerbaijan " climbed into the pockets " of the consumers because of the high public deficit - forecast of 1 billion 679 million manats , or 2.87 % of GDP.

Economist (former head of the department of the Cabinet AP) Oktay Hagverdiev , commenting on the increase in tariffs for diesel fuel , said that this is due to the decrease in the level of exports of crude oil despite the fact that the economy is about 94% dependent on exports of hydrocarbons (oil , oil products and natural gas).

Given the fact that the non-oil sector is not " promoted" in real economy and its real growth depends entirely on the implementation of shadow investments, mainly in road projects, the government's intention to reduce the budget deficit to 300 million or 0.44 % of GDP has little basis .

Recall budget revenues of Azerbaijan for next year are projected at 18 billion 384 million manats, and expenses - 20 billion 63 million manats. In 2015, the revenue forecast - 17 billion 509 million manats , expenses - 18 billion 465.5 million manats with a deficit of 956.5 million or 1.61 % of GDP. In 2016 revenue forecast - 17 billion 97.6 million manat, expenses - AZN 18 billion 50 million with a deficit of 952.4 million or 1.51 % of GDP.

In 2017, budget revenues are projected at 17 billion 500 million manats, expenses - 17 billion 800 million manats deficit - 300 million or 0.44 % of GDP. Indirectly, that means that the government does not intend to abandon the oil dependency and policy does not prefer simulation of free enterprise. The Ministry of Taxes and the Customs Committee will further get into the pocket of businesses, so that they increased consumer prices.

Recall Azerbaijan's state budget for 2013 was approved with revenues of 19 billion 159 million manats , expenses - 19 billion 850 million manats with a deficit of 691 million manat or 1.2% of GDP . - 17D-