Oil continues remaining the basis of Azerbaijani economy

The review of the non-governmental national budget group of the state budget for fiscal year 2014 has been released (revenues – 18,384,000,000 AZN or down 775,000,000 against forecasted for this year, costs – 20,063,000,000 or up 213,000,000 AZN against this year). 

The experts believe that as previously the main specific weight (50.8%) of the budget revenues will fall to the transfers from the State Oil Fund, only 38.6% to the tax service, 8.2% - to the customs committee and 2.4% - other inpayments.

The Taxes Ministry will collect over one third (39.5%) of funds at the expense of transfers of the State Oil Company of Azerbaijan (SOCAR) and the production sharing contracts.

The customs will ensure a significant amount of earnings at the expense of hydrocarbons export – the budget will again depend to the oil production and world oil prices (68.4% of all earnings, this year – 73.09%). 

The national budget group disagrees with the official estimates of growth of non-oil revenues against the background of reduction of capital investments and long-term tax remissions for investment into the securities, for the agricultural production and industrial parks. 

According to the calculations, in 2014 income per capita will total 1,975 AZN ($2,515) with the non-oil incomes of 625 AZN ($800). The total income per capita in Russia is planned to be $2900, while in Kazakhstan - $2100. The post-socialism countries with no hydrocarbon resources the situation is different – Slovenia expects to have $10,597 per capita, Hungary - $7,474, Slovakia  - $6,018, Croatia - $5,679, Czech Republic - $4,900 and etc.

SOCAR, consolidated taxes and other allocations will be more active in the budget and they will increase by 22.5% or 335,000,000 AZN up to 1,825,000,000 AZN against this year’s expectations. The profit tax of the foreign oil companies from the PSA is expected to be 977,000,000 AZN, down 173,000,000 AZN against the forecasted this year.—0—