The price of oil in the state budget for next year is at the level of $ 50 per barrel, the official website of the Ministry of Finance reported on the draft state and consolidated budgets.
The revenues are projected at $ 14 billion 566 million manats (minus 25.1% this year) and the costs - at 16 billion 264 million manats (minus 22.9%) with a deficit of 1 billion 698 million manats.
For the first time the leader in revenue, according to expectations, will be the Ministry of Taxes - 6.6 billion manats (minus 7.2%), the State Oil Fund of Azerbaijan will contribute 6 billion manats (- 42.2%), and the State Customs Committee - 1.59 billion manats (the same). In comparison with the projected figures for 2016, revenues from the non-oil sector will account for 46.5% of the total revenues of the state budget (+11.8%).
Public investment, though reduced by 48.7%, is still a leader in costs - they are planned at the level of 3 billion 554.8 million manats. State expenditures amount to 2 billion 416.9 million manats (+ 18.1%). Expenditure on social protection and social security is projected at 1 billion 896.6 million manats (- 7.1%), defense - 1 billion 837.8 million manats (+ 3.3%), education - 1 billion 713.5 million manats (+0.1%), the activities of courts, law enforcement agencies and the prosecutor's offices - 1 billion 138.8 million manats (minus 7.2%). Health care will be allocated 744.9 million manats (minus 4.2%), housing and utilities - 416.8 million manats (- 6.1%), culture, art, information, physical education and other humanitarian purposes - 652.7 million manats (an increase of 1.9 times), and science - 131.7 million manats (minus 12.5%).
Revenues of the consolidated budget are projected at 16 billion 720.1 million manats, expenses - 19 billion 906.5 million manats with a deficit of 3 billion 186.4 million manats. --17D-
Economics
-
Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
-
Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
-
Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
-
In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
Leave a review