SOFAZ: Azerbaijan cuts budget dependence on volatility of oil revenues
By Trend
Azerbaijan’s strategic currency reserves, which have reached $45 billion over 10 months, provide an opportunity for successful implementation of measures to counter the global crisis and rapidly solve economic, social, environmental and other issues, Executive Director of the State Oil Fund of Azerbaijan (SOFAZ) Shahmar Movsumov said.
Movsumov made the remarks in Baku on Nov. 5 at a joint meeting of parliamentary committees during the discussion of the state budget for 2019.
"The structural reforms carried out in all sectors of the country recently, the liberalization of the economy and the development of the non-oil sector have ensured the sustainability of Azerbaijan’s economy,” he said. “Today, the country has sufficient potential for development and financial potential."
“SOFAZ's basic indicators for 2019, as well as the parameters of the state budget have been formed on the basis of the average annual oil price of $60 per barrel,” he said.
SOFAZ’s revenues for the next year are projected at 15.579 billion manats, which is 28.4 percent more than SOFAZ’s revenues in 2017, and by 1.8 percent more than the figure forecast for 2018.
"Revenues from the sale of profit oil and gas accounting for Azerbaijan's share - 13.218 billion manats - have the biggest weight,” Movsumov added.
"Application of new fiscal budgetary rules on medium-term and long-term management of expenditures of the 2019 consolidated budget reduces the dependence of the state budget on the volatility of oil revenues and creates conditions for strengthening of budget discipline,” he said. “SOFAZ’s expenditures for the next year have been formed taking into account these rules."