Government Cuts Several Social Spending Articles for 2017

The Ministry of Finance submitted a draft law ‘On State Budget for 2017’, which is much different from the version of the document, which was submitted to the public six weeks ago.

The updated version of the bill will be discussed in Parliament. Independent experts have identified a difference of costs for many articles of the state budget, which are directed to the increase in defense spending and construction. It is about 1 billion 666 million manat.

The costs of servicing the public debt will be reduced from the first version of the bill by 127 million manat. The law enforcement agencies will be allocated 19 million manat less than envisaged earlier. The science costs will be cut by 6.8 million, education – by 126 million, health care – by 30.4 million, sport – by 201 million, social protection - by 64.7 million, and art and culture – by 19.5 million manat.

According to the new text of the document, to support entrepreneurship AZN 35 million will be allocated, which is 102 million manat less than was indicated in the pre-text. Farm costs (in a new project - 479 million manat) will fall by 305.5 million manat.

In addition, costs not included in the main sections of the budget (in the new project - 884.4 million manat) will be cut by 633.3 million manat.

Overall, the changes have affected 15 sections and subsections of the expenditure part of the budget for 2017.

State budget revenues for 2017 are provided at the level of 15 billion 955 million manat, and expenses – at the level of 16.6 billion manat.    ----- 08D