No state can fully insure against shocks – Finance Ministry


November 13, Fineko/abc.az. Following the analysis conducted on the basis of various scenarios, the forecast of oil price for the medium term at the level of $55 a barrel was more acceptable, and the upper limit of the consolidated budget expenditures was calculated on the basis of pessimistic assumptions on the conservative scenario in accorde with the budget procedure.

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

According to the Ministry, this approach is characterized by the fact that the projected net financial assets (in other words, the forecast of budget revenues) are determined in a lower amount than real expectations, that is a manifestation of an unbiased and unprofessional approach towards that and remains an optimistic scenario.

At the same time, State Budget 2020 is drawn up in accord with the budget rules, which essentially support the implementation of the counter-cyclical spending policy and neutralize much the impact of changes in world market prices for oil on the annual expenditures of the State Budget. But it is known that no state can fully insure against significant shocks that may arise in the world market.