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Finance Ministry passes a new financial rule

13.11.2019,13:03


November 13, Fineko/abc.az. With the purpose to ensure macroeconomic stability, form a stable fiscal framework, limit the pro-cyclical fiscal policy and support the transformation of a natural asset into a permanent financial asset, the application of the budget rule has been launched since last year.

ABC.AZ reports that the statement was made by Finance Ministry’s press service.

The information says that in order to ensure the stability of the budget and the long-term stability of the state financial system, the upper limit of consolidated budget expenditures is determined in accordance with the budget procedure. In accordance with this, in the process of determining the macro-fiscal framework for Draft State Budget 2020, first of all, taking into account the country's net financial assets, and then projected non-oil revenues, the upper limits of consolidated budget expenditures, possible oil revenues, including transfers from the State Oil Fund, were determined. Forecasting of the oil price at the level of $55 per barrel of oil for the medium term based on various multi-factor simulations is considered more acceptable for the budget, which is our approach.