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Budget revenues to exceed AZN 427 mln next year

16.09.2019,13:13


September 16, Fineko/abc.az. The Ministry of Finance presented to the public a summary of the draft state budget for next year. According to the document, the price of an oil barrel is set at $ 55.

Abc.az reports that after the ministry’s statement, the head of the Center for Economic and Social Development, Vugar Bayramov, commented on the draft budget.

In his commentary, Bayramov highlighted a number of points and noted that, despite the fact that compared to 2019, it is less by $5 per barrel, given the volatility in the oil market, it was advisable to lower the price even more.

“The Center for Economic and Social Development (KESD) was offering the price of oil in the budget at the level of 50 dollars. Even the 20% rise in oil prices observed today after the attack on oil wells in Saudi Arabia does not create an optimistic mood in the market. Obviously, such cases of price increases are due to technical reasons and do not reduce the sharp volatility in the market.

Despite the establishment of reduced oil prices, next year the growth of revenues and expenditures of the state budget is forecasted compared to this year. Next year, budget expenditures will amount to AZN 25.6 billion. And this is AZN 427 million more than in 2019. The main reason for the increase in budget expenditures is associated with an increase in funds allocated to the social sphere. However, the oil sector will be the main source of financing for this growth. Next year, budget revenues are projected at AZN 25,484,000,000. Thus, 57% of budget revenues will fall to the share of the oil sector. AZN 11,767,000,000 will be transferred from the State Oil Fund to the state budget,” Bayramov noted.

Posted by Elmir Murad