Government Cuts Funding for Social Spending

The Deputy Chairman of the NGO Assistance to Economic Initiatives Rovshan Agayev stated, referring to the figures announced on January 10 by Finance Minister Samir Sharifov, that spending on social protection and health care was cut by 10% (183 500 000 manat) to 70 million manat and spending on education was cut by 6% (106 million manat).

In 2015, public investment in the economy financed from the state budget was reduced by 47% or 3.7 billion manat.

In general, the government states on the execution of the revenue part of the state budget at 2.3 billion manat (12%). Economists estimate that if there was no devaluation, the revenues would be $ 4.2 billion or 23% less than the forecast. Excluding the impact of the devaluation, the budget would have been executed by 14.2 billion manat in terms of revenue, up 1.5 billion manat less than in 2011.

In view of the fact that the manat was stable for the past 15 years, the researchers did not experience difficulties in its performance compared with previous years. Now, however, economists have to compare this data not in nominal terms, but taking into account the impact of the devaluation.

In dollar terms (about $ 10 billion.), the state budget revenues in 2015 were 2 times lower than in 2013. Three years ago, the budget revenues reached their highest figure - $ 20 billion. --- 08D