To Calculate Budget on Basis of World Prices for Oil at $ 50 per Barrel (UPDATED)

The International Monetary Fund recommends the execution of the state budget for the current plan and the budget for the next year at the rate of world oil prices at $ 50 per barrel. According to the largest financial institution, it will limit the reduction in the assets of the State Oil Fund (SOFAZ), reduce the risk of increasing inflation following the February devaluation, bring public investment to a more sustainable level, and enhance the effectiveness of the projects implemented by the government.

The IMF mission noted the need to enhance confidence in the medium-term strategy for fiscal consolidation. It believes that the February devaluation helped restore relative competitiveness, but should maintain reserves and not ignore the trust of the private sector.

IMF is for the "floating" rate of the manat and for gradual transition to greater exchange rate flexibility. It recommends to invest more private investment, which will help mitigate the adverse effects of short-term fiscal consolidation. The same also needs reform management, reducing the cost of doing business and the removal of barriers to competition, including the costly customs procedures.

Furthermore, the efficiency of the government should be improved, the efforts to combat corruption should be expanded and the rule of law and independence of the judiciary should be strengthened. --17D-