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Azerbaijan drafts debt management strategy of state structures, companies [UPDATE]

22 May 2018 14:58 (UTC+04:00)
Azerbaijan drafts debt management strategy of state structures, companies [UPDATE]

By Sara Israfilbayova

At the meeting of the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship on May 22 participants discussed the draft law “On the execution of the state budget of Azerbaijan for 2017”.

Addressing the meeting, Chairman of the Committee on Economic Policy, Industry and Entrepreneurship of Azerbaijani parliament Ziyad Samadzade said that positive trends are increasing in Azerbaijani economy, adding that all social measures provided for in the state budget, were implemented in 2017.

“Despite the growth of risks on a global scale, Azerbaijan has managed to ensure dynamic development. These achievements will help us to achieve higher budget performance in 2018,” he said.

State budget revenues in 2017 amounted to 16.446 million manats ($9.67 million), expenses – 17.588 million manats ($10.34 million). The state budget makes up 1.6 percent of the GDP.

He went on to say that a debt strategy [strategy for managing public debt] of state structures and enterprises has been prepared in Azerbaijan, which will soon be submitted to the government.

As of January 1, 2018, Azerbaijan’s external public debt amounted to $ 9.399 billion, or 22.8 percent of the country’s GDP.

Samadzade also noted that the parliament plans to discuss the revision of the state budget of Azerbaijan for 2018, in particular, to change the base price for oil laid in the state budget.

The base price for oil, pledged in the state budget for this year, is $45.

Azerbaijani MP, member of the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship, Ali Masimli, in his turn noted that the base oil price of $45 a barrel in Azerbaijan’s 2018 state budget, may be raised to $55 a barrel.

“The state budget can be submitted for discussion in mid 2018. If we receive such a proposal from the government, I believe the optimal price will be $55 per barrel,” Masimli said.

He went on to say that the issue of financing the increase of salaries in the country is on the agenda.

“The increase in salaries began in March, in some organizations - since May. According to initial estimates, additional funds in the amount of 600 million manats ($352.94 million) will be needed. The issue can be resolved through structural changes, raising additional funds or thanks to a positive difference achieved from the rising oil prices,” he said.

In turn, Deputy Finance Minister Azer Bayramov stressed that in 2017 Azerbaijan managed to ensure macroeconomic stability, financial stability, and economic growth.

The official said that, such indicators have been achieved through economic reforms carried out in the country.

“I would like to note that in 2017 compared to the previous year, Azerbaijan’s strategic foreign exchange reserves increased by $4 billion and amounted to $41 billion. Budget revenues, excluding transfers from the State Oil Fund, increased by 5.3 percent. Azerbaijan’s foreign trade has grown by more than 12 percent, non-oil exports - by 24.4 percent, revenues from the non-oil sector-by 5 percent,” Bayramov said.

Revenue part of the 2018 state budget is forecast to total 20.127 billion manats ($11.84 billion) (including centralized revenues in the amount of 19.473 billion manats ($1.45 billion), local revenues in the amount of 653.353 million manats-$384.32 million), while expenditures are expected to amount to 21.047 billion manats ($12.38 billion) (including centralized expenditures in the amount of 20.323 billion manats ($11.95 billion), local expenditures in the amount of 723.925 million manats-($424.84 million).

Azerbaijan’s GDP in the first quarter of 2018 amounted to almost 17.2 billion manats ($10.12 billion), which is 2.3 percent more than in January-March 2017, according to a report of Azerbaijan’s State Statistical Committee.

The Azerbaijani government forecasts a 1.5 percent GDP growth for this year.

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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is

Follow us on Twitter @AzerNewsAz

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