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—
Economics
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BP, the operator of the Shah Deniz gas condensate field, announced on Sunday that production from the Shah Deniz Alpha platform resumed on the evening of January 18. This followed the complete resolution of a technical issue with the subsea condensate export pipeline between the Shah Deniz Alpha platform and the Sangachal terminal.
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SOCAR President Rovshan Najaf met with the Minister of State for Petroleum of Pakistan, Musadik Malik, on January 18. According to SOCAR, the discussions covered joint energy projects, achieved outcomes, and cooperation opportunities in various areas, including the trade of petroleum products.
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The State Statistics Committee of Azerbaijan reported that in 2024 investments in fixed assets reached 21,435.1 million manats, which is 0.7% less than in 2023. While overall figures edged lower, the sectoral breakdown reveals notable disparities between the oil and gas sphere and non-oil industries.
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Azerbaijan’s industrial enterprises and individual entrepreneurs reported a modest 1.1% year-on-year increase in industrial production during 2024, reaching an output valued at 64.1 billion manat. The State Statistics Committee attributed the overall growth to a 0.5% expansion in the oil and gas sector, while non-oil and gas industries surged by 7.3%.
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