Minister of Finance Announced Abolition of Tax and Customs Privileges

The draft budget 2016 is characterized by a reduction in transfers from the State Oil Fund of Azerbaijan and the growth of non-oil revenues. On Friday Finance Minister Samir Sharifov said this during the discussion of the draft budget for 2016 at the joint meeting of five parliamentary committees.

The draft state budget for 2016 was prepared taking into account the instability in the global economy. The crisis necessitates restrictions and in some cases abolition in 2016-2019 of tax and customs privileges in a number of areas, he said.

At the same time, the Azerbaijani government plans to simplify the taxation in the field of construction, trade and catering, which will contribute to business development and growth of state budget revenues.

The forecasts of the state budget for the next year formed taking into account the oil price at $ 50 per barrel.

Budget revenues for 2016 are projected at 14.566 billion manat, or 25.2% of GDP, which amounts to 57.7 billion manat.

The costs amount to 16.264 billion manat, or 28.2% of GDP.

The budget deficit for 2016 is forecast at 1 billion 698 million manats, or 2.9% of GDP.

Budget revenues, as compared with 2015, reduced by 25.1% and in terms of 2014 - by 20.84%.

 State budget expenditures, compared to 2015, reduced by 22.9% and, as compared to the year 2014, – by 13.07%.

Next year it is expected to reduce the share of oil sector in general revenues to 53.5%, against 65.3% in 2015. In 2014 the figure was 66%.

In the structure of budgetary expenditures the military costs will be $ 1 billion 837.8 million manat (growth by 3.3%).

At the same time, investment costs will be reduced by 48.7% to 3 billion 554.8 million manats.

The rate of the manat against the US dollar in the state budget for next year is set at 1.05 manat. -06D-