Share of non-oil sector in budget revenues will grow next year - Vugar Bayramov


September 16, Fineko / abc.az. This year, AZN 11,364,000 should be paid to the budget from the Oil Fund.

In fact, the Ministry of Finance should try not to increase, but to reduce the volume of transfers from the Fund, since the priority remains to eliminate the dependence of the budget on oil, and especially oil, on the global market.

ABC.AZ was informed about it by head of the Center for Economic and Social Development (CESD) Vugar Bayramov, commenting on the summary of the draft budget of the Ministry of Finance for the next year.

He noted that the share of the non-oil sector in budget revenues next year will increase by 11.3% compared to 2019.

“Despite this positive trend, the government should try to generate at least half of the budget revenues from the non-oil sector. At the same time, the positive side of the state budget for 2020 is that the amount of direct funds allocated to social services for the first time in recent years in total budget expenditures exceeds 40%. Compared with this year, next year   AZN 2,664,000,000 for social spending. AZN 6,723,000,000 will be spent on remuneration, AZN 3,213,000 on pensions and scholarships. In addition, AZN 2,458,000,000 will be allocated for the return of the state budget, of which AZN 775,000,000 is only interest payments. In fact, this figure once again confirms the importance of minimizing external debt. The Ministry of Finance predicts that next year the manat to the dollar will not change. Nevertheless, how the manat rate will change in 2020 will mostly depend on world market oil prices and the exchange rate of national currencies of our non-oil foreign trade partners and, in particular, Russia,”  Bayramov said.

Posted by: Elmir Murad