Azerbaijani Parliament approved the state budget for 2016. According to the document, budget revenues for 2016 are projected at 14.566 billion manats, which amount to 25.2% of GDP (its volume is forecasted in the amount of 57.7 billion manats).
Budget expenditures will amount to 16.264 billion manats, or 28.2% in relation to GDP.
The budget deficit for 2016 is forecast at 1,698 million manats or 2.9% of GDP.
In comparison with the expected rate in 2015, budget revenues will decline by 25.1%, and the actual indicator of 2014 will be reduced by 20.84%.
State budget expenditures, compared to 2015, will reduce by 22.9%, and compared to 2014 - by 13.07%.
The final version of the state budget has increased provision for internally displaced persons by 50% (150 million manats).
As the Minister of Finance Samir Sharifov said, the additional costs for these purposes will be provided at the expense of transfers from the State Oil Fund.
The budget figures were compiled based on oil prices of 50 dollars per barrel and the exchange rate at the level of AZN 1.05 to the US dollar.
The Parliament also approved the budget of the State Social Protection Fund for 2016. -06D--
Economics
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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.
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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."
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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.
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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.
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