Government Embarked on Preparation of Draft State Budget for Coming Years

Prime Minister Artur Rasizade signed on January 27 a decree on the development of the draft state budget, the concept and the targets of the socio-economic development of the country for 2016. If in the next 2-3 months oil prices do not rise, it is expected that next year's budget will be much more modest than this year, on indicators both in the revenue and the expenditure sides.

The Ministry of Finance before September 15 should complete work on the draft state budget and the draft consolidated budget for the next year and the next 3 years. To this end, the Ministry of Finance within one month should submit to the Cabinet the commissions on revenues and expenditures of the state budget.

Socio-economic development, as well as the consolidated financial balance of the Ministry of Economy and Industry will be presented to the Government no later than September 10. The State Statistics Committee for this purpose, as well as for the preparation of a medium-term program of socio-economic development, will provide the statistics for 2014 by February 5.

Expected are changes in the legislation, which should contribute to the growth of state budget revenues in the coming years, as under the fiscal authorities (tax and customs) and other government agencies. Proposals in this regard should be submitted to the Cabinet before March 1. Preliminary indicators of the state budget and consolidated budget for 2016 and the years 2017-2019 are requested to be prepared before the 10th of April, and preliminary indicators of public investment - by 31 March.

Provisional budgets for 2016 and the next three years of the State Fund of Social Protection and the State Oil Fund are to be developed no later than 15 March and clarified before 1 July.

Note that the state budget revenues for 2015 were approved at 19 438 million manat and expenditures – at 21.1 billion manat. Experts believe that at current oil prices, the state budget revenues will be reduced by at least $ 3 billion. In 2014, revenues in the state budget amounted to 18.4 billion AZN or 100.2%, and the expenses amounted to 18.7 billion manat, 6.8% less than the approved level. ---08D