Azerbaijan Charts Fiscal Course for 2024: President Ilham Aliyev Approves  Budget Package

President Ilham Aliyev has given the green light to the 2024 state budget, marking a strategic fiscal plan aimed at advancing Azerbaijan's economic resilience. The approved budget, signed into law on December 26, delineates key financial parameters, projecting revenues of AZN 34,173 million and expenditures of AZN 36,763 million. Notably, these figures represent a marginal 0.8% and 0.4% increase from the approved forecasts for 2023, respectively.

With a budget deficit of 2,590 million Manats forecasted for 2024, this signifies a commendable 5.3% year-on-year reduction, showcasing the government's commitment to fiscal prudence.

In a broader context, the consolidated budget for Azerbaijan in 2024 is anticipated to witness revenues of AZN 38,997.5 million and expenditures of AZN 42,376.2 million. Despite a 9.4% reduction in revenues and a 2.7% increase in expenditures compared to the 2023 forecasts, a deficit of 3,378.7 million Manats is projected for the upcoming year, a notable shift from this year's anticipated surplus of 1,790.3 million Manats.

Furthermore, President approved legislation pertaining to the budgets of the State Social Protection Fund and the Unemployment Insurance Fund for 2024. The former is set to receive a 10.4% increase, totaling 6,919.9 million Manats, while the latter is earmarked for a 9.3% boost, reaching 238 million Manats.

Aligning with these financial directives, the president also endorsed the law "On the Subsistence Minimum for 2024," reflecting a 9.8% increase to 270 Manats. The breakdown includes a living wage of 287 Manats for the able-bodied population, 222 Manats for pensioners, and 235 Manats for children.

Significantly, the criterion of need for 2024 is set at 270 Manats, mirroring the increase observed in the subsistence minimum.

As Azerbaijan navigates the economic landscape of 2024, these budgetary decisions signal a nuanced approach to fiscal management, balancing growth aspirations with a prudent fiscal outlook.