2020 state budget takes into account today’s realities and future challenges

2020 state budget takes into account today’s realities and future challenges

Economy
08 November 2019, 13:00 23
According to economists, the state budget parameters for 2020 are more positive than the current year's budget
 
The bill "On the Azerbaijani state budget for 2020" was discussed at a joint meeting of committees of the Azerbaijani parliament. The state budget revenues in 2020 will amount to over 24.1 billion manats ($14.2 billion), expenses – over 26.9 billion manat ($15.8 billion) while the consolidated budget revenues – over 27.5 billion manats ($16.2 billion). The upper limit of the budget expenditures has been set at over 29.5 billion manats ($17.4 billion), which is 2.1 billion manats ($1.2 billion) or 7.7% more than the corresponding figure in 2019. The share of oil revenues in total budget revenues is envisaged at 13.5 billion manat ($7.9 billion) or 56.1%, while non-oil revenues - 10.6 billion manats ($6.2 billion) or 43.9%. Over 11.4 billion manats ($6.7 billion) is planned to be transferred from the State Oil Fund of the Azerbaijan Republic (SOFAZ) to the state budget in 2020, which is by 14.3 million manats ($8.4 billion) less than this year. After the discussions, Azerbaijani Minister of Finance Samir Sharifov answered questions of the meeting participants and stressed that a number of proposals will be considered. After the discussions, the bill was recommended for consideration at a plenary meeting of the parliament.
 
We spoke to experts on the state budget for 2020.
 
Economist Parviz Heydarov said that the state budget of 2020 differs from previous years' budget by many parameters. "A common feature is that the bulk of budget expenditures next year are socially oriented, which is traditional. In the state budget of 2020, spending on the social sphere is greater. In 2019, the minimum wage was doubled. Social policy will be resumed next year. A very important issue is that over 40% of state budget revenues next year will be revenues from the non-oil sector. The share of the non-oil sector in budget revenues should be maximized. This is a very important point for large-scale actions in social policy. To ensure the sustainability of this policy, it is important to minimize the dependence on oil revenues. The financial basis of the salaries, pensions and social benefits of citizens should not be the income from energy resources. One of the key points is that oil prices in the budget are based on a well-thought-out and cautious approach,” he said.
 
According to MP Azer Badamov, next year, macroeconomic stability will be maintained. "Discussions on the state budget for 2020 have been finalized. Different views were voiced in the Milli Majlis. The budget for 2020 has been prepared, taking into account the current realities and challenges of the future. Our goal is to maintain macroeconomic stability in the country in 2020. Also, economic growth should continue as it did in 2019. This year the social policy was successfully implemented. One of the highlights of next year's budget is that the budget is socially oriented. Implementation of budget projections for next year and increase of our budget revenues will contribute to the improvement of social welfare of citizens,” the MP noted.
 
Expert Fikrat Yusifov said that the parameters of the state budget of 2020 are more positive than the budget of the current year. "It is planned to increase budget revenues and expenditures next year. A significant proportion of these increases are aimed at implementing the state's social policy. In 2019, orders signed by the head of state have significantly increased salaries, pensions, and other payments. It seems that the government will continue to focus on addressing social issues next year. In general, the budget is the main financial document that reflects the current state of the country's economy. The budget is projected to have a significant share of oil revenues next year. This means that the budget's dependence on oil is quite large. We should aim to minimize budget dependence on oil in the coming years. This is because confidence in steady oil prices is decreasing,” he said.
 
Shabnam Mehdizade