State Budget Expenditures Decreased by 2.3%

In 2014, the state budget revenues amounted to 18.4 billion, expenses - 18.7 billion manat. This was said at the January 10 Cabinet meeting chaired by President Ilham Aliyev by the Minister of Economy and Industry Shahin Mustafayev.

2014 state budget expenditure was approved at the level of $ 20 billion 63 million manat. Thus, no costs have been funded in the amount of approximately 12.3 billion manat, or 6.8% of the anticipated costs. At the meeting, it was not specified on what exactly the directions of the state budget were cut off funding.

According to the minister, in 2014 the state budget revenues from non-oil sector grew by 19.5%, from the regions - by 9.8%.

According to the expert Rovshan Agayev, the first time in 5 years, i.e. since the first economic crisis, the state budget expenditures reduced in relation to the previous year. Costs compared with 2013 decreased by about 400 million manat, or 2.3%. According to the economist, the government could at least explain the socio-economic impacts of budget cuts.

Many experts predict that due to the fall in world prices of crude oil in 2015, the government will have to refrain from funding the construction of many public facilities. Resources will be directed primarily to the completion of preparations for the European Games in Baku and other cities of Azerbaijan, scheduled for June this year.

In 2015, 25% of the budget expenditures are protected (salaries of state employees, pensions and other social benefits). If in 2015, world oil prices are at $ 50-60 per barrel, in the opinion of many experts, the budget will lose about 3.8-4 billion manat. The government probably will not make additional transfers from the state budget and reduce the "investment appetite." ---08B