Azernews.Az

By Nigar Abbasova

The Azerbaijani Parliament will launch discussions on the draft 2017 state and consolidated budgets next week. President Ilham Aliyev submitted the final version of the budgetary package to the Parliament on November 16, 2016.

The package will be initially discussed at the meeting of the parliamentary committees, and then recommended to the plenary session.

Revenues of the 2017 state budget are forecasted at the level of 15.955 billion manats ($ 9.363 billion), while expenses are expected to stand at 16.6 billion manats ($ 9.74 billion) in 2017.

The upper limit of the budget deficit is forecasted in the amount of 645 million manats ($ 378.5 million). The deficit will be covered by revenues from privatization, internal and external loans, foreign grants and the balance on the treasury single account of the state budget for January 1, 2017.

Revenues are expected to be formed through transfers from the Tax Ministry (7.21 billion manats ($ 4.23 million)), State customs Committee (2.2 billion manats ($ 1.29 billion)), State Committee on Property Issues (8 million manats ($ 4.6 million)), payable services rendered by budgetary organizations (353 million ($ 207.1 million), transfers from State Oil Fund (SOFAZ) (6.1 billion manats ($ 3.5 billion)), and other (84 million manats ($ 49.2))

Oil price is set at $40 per barrel in the draft 2017 state budget, while the country has also prepared two additional scenarios of the state budget given the price standing at $35 and $45 per barrel.

The parameters of the state budget for 2016 were based on oil price at $25 per barrel, which was mainly connected with the decline in oil prices, which in turn sharply reduced the projected revenues of the state and consolidated budgets, as well as devaluation of the national currency and transition to a floating exchange rate.

The budget expenses are expected to be reduced in 2017. Some 2.8 billion manats ($ 1.64 billion) will be directed to defense industry, science and education will account for 118.5 and 1,733 billion manats , respectively. Healthcare will account for 754.4 million manats ($ 442.7 million), while some 2, 053 million manats will fall to a share of social protection.

Revenues of the consolidated budget are forecasted at the level ofroughly 19,721 billion, while expenditures will stand at 20.967 billion manats.

Finance Minister Samir Sharifov earlier said that the country should bring expenses in line with revenues; therefore the policy will be tightened regarding the expenses, while the priority will be given to the necessary and important expenses.

The country is expected to continue allocation of funds for the support of entrepreneurship, while the volume of funds, allocated from the budget for the National Fund for Entrepreneurship (NFES) in 2017 will remain at the level of the current year.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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