Azernews.Az

By Sara Israfilbayova

Revision of Azerbaijan’s state budget for 2018 is caused by the aspirations to increase the country’s defense capability and security as well as to strengthen protection of socially vulnerable segments of the population.

Azerbaijani Finance Minister Samir Sharifov made the remarks during discussions on the corresponding bill at a plenary session of the Azerbaijani parliament on June 29.

In accordance with the bill, there are plans to increase state budget revenues by 1.983 million manats-$1.17 million (9.9 percent) to 22.110 million manats ($1.3 million) and to increase expenditures by 2.014 million manats-$1.18 million (9.6 percent) to 23.061 million manats ($2.3 million). The state budget deficit will be 951 million manats-$559.4 million (an increase of 31 million manats), which will be equal to 1.3 percent of the expected GDP of Azerbaijan in 2018.

The revenues of Azerbaijan’s adjusted consolidated budget for 2018 are forecast at 28.09 billion manats ($16.52 billion), which is 3.98 billion manats ($2.34 billion) or 16.5 percent more than the approved budget. The consolidated budget expenditures will amount to 26.537 million manats ($15.61 million), which is 1.6 billion manats ($941 million) or 6.4 percent more than the approved figures.

In accordance with new forecasts, the previously approved deficit of the consolidated state budget in the amount of 831.1 million manats ($488.82) will be replaced by a surplus of 1.5 billion manats ($882 million).

The budget forecasts were adjusted considering oil price at $55 per barrel. The base price for oil set in the state budget for this year is $45.

The minister noted that the reforms in the customs sphere as well as the increase of duties on certain goods, in particular the increase of excise tax rates on tobacco and alcohol products, made it possible to increase the forecast for customs revenues to the state budget.

“As a result, the forecast for customs revenues to the state budget has been increased by 785 million manats ($461.76 million),” Sharifov said.

The state budget revenues for 2018 were approved at the level of 20.127 billion manat ($11.84 billion), and expenditures - 21.047 billion manats-$12.38 billion (including centralized incomes - over 19.473 billion manats ($11.45 billion) and local incomes - 653.350 million manats ($384.32 million), centralized expenses - over 20.323 billion manats ($11.95 billion) and local expenses - 723,925 million manats ($435.84 million)).

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

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