Budget revenues of the State Oil Fund of Azerbaijan (SOFAZ) in 2018 reached 17.6 billion manats, which is a 31.1 percent increase compared to 2017 (12.1 billion manats), Trend reports with reference to the SOFAZ website.
This is while budget expenditures constituted 11.4 billion manats.
Revenue of 17.3 billion manats was received from implementation of oil and gas agreements, including 16.6 billion manats from the sale of profit oil and gas, 765.2 million manats as bonus payments, 4.1 million manats as acreage fee and 18.1 million manats as transit payments.
As per SOFAZ’s 2018 budget, 10.9 billion manats were transferred to the state budget.
The expenditures in the amount of 200 million manats were directed to financing the improvement of social-economic condition of refugees and internally displaced persons, 90 million manats were used for financing the reconstruction of the Samur-Absheron irrigation system.
Also, 176.1 million manats were directed to financing Baku-Tbilisi-Kars railway construction and 7.2 million manats were directed to financing "The state program on the education of Azerbaijani youth abroad in the years 2007-2015".
SOFAZ’s administrative and operational expenses for the reporting period were 23.3 million manats.
The Fund's extra-budgetary expenditures related to the revaluation of foreign exchange totaled 1.5 billion manats.
The assets of SOFAZ as of January 1, 2019 have increased by 7.56 percent compared to the beginning of 2018 ($35.8 billion) and stood at $38.5 billion.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include accumulation of resources and placement of assets abroad in order to minimize the negative effect to the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
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