Against the backdrop of the financial crisis provoked by the government, the government is trying to prepare a balanced budget of revenues and expenditures of the state budget, which will provide a strict regime of economy in 2016 and the next three years, said in his speech at a meeting of the Cabinet of Ministers on the results of socioeconomic development in 2015 and the upcoming challenges, Finance Minister Samir Sharifov. He also focused on the strengthening financial discipline and order for the economical use of public resources, prevent waste and unnecessary costs. In addition, it is important to improve the state management system, implement reforms in the management of state-owned companies, giving an additional boost to the process of privatization of state property. Against the background of the devaluation, he also spoke about the significant consolidation of the banking system and increase confidence in the sector, although dollarization and capital flight from the country indicate undermining former confidence.
In addition, the Minister spoke of the continuing decline in oil prices, the Central Bank of Azerbaijan Republic on the transition to the new policy of the manat, which is fraught with budget cuts predictions for this year; as we;; as saving foreign exchange reserves, measures to neutralize the final impoverishment of the poor by increasing the prices for essential commodities. --17D-
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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