State budget expenditures to be reduced in 2020

By Azernews

By Abdul Kerimkhanov

The Azerbaijani government plans to reduce state budget expenditures by $11.18 million in 2020, Finance Minister Samir Sharifov said during a parliament session held on November 25.

“In connection with the increase in budget revenues of the Nakhchivan Autonomous Republic (NAR) by 19 million manats ($11.8 million), there is a proposal to reduce subsidies to the NAR budget from the state budget. The proposed amount of 19 million manats is proposed to be used to cover the state budget deficit,” Sharifov said.

The minister emphasized the state budget revenues will remain at the level of 24.13 billion manats ($14.2 billion), and expenses will be reduced to 26.89 billion manats ($15.8 billion). In general, the state budget deficit will amount to 2.76 billion ($1.6 billion) manats.

Futhermore, he said the country's consolidated budget revenues for 2020 will amount to 27.55 billion manats ($16.2 billion), while expenses reach 29.49 billion manats ($17.3 billion). The deficit of the consolidated budget will be 1.94 billion manats ($1.14 billion).

Sharifov further added that by the third reading a number of questions and proposals expressed by MPs will be considered.

“Proposals would be considered to increase funds allocated for financing parties by 1 million manats ($588,235), and for financing public associations - by 900,000 manats ($529,412). It is also proposed to increase expenses of the Parliament by 1.9 million manats ($1.1 million). If these proposals are accepted, the budget will be amended accordingly,” Sharifov added.

The draft law “On the State Budget for 2020” was adopted in the second reading at the next plenary session of Azerbaijan’s Parliament on November 25.

Note that the revenues of the Azerbaijani state budget for 2019 are projected at 23.17 billion manats ($13.6 billion), expenses at 25.19 billion manats ($14.8 billion). The budget deficit will amount to 2.02 billion manats ($1.19 billion), which is equal to 2.5 percent of GDP.