Azerbaijani parliament ratifies amendments to 2017 state budget

Azerbaijani parliament ratifies amendments to 2017 state budget
# 30 June 2017 12:15 (UTC +04:00)

APA-Economics reports that after Ziyad Samadzade, Chairman of Economic Policy, Industry and Entrepreneurship Committee of the parliament and Samir Sharifov, Minister of Finance informed about the state budget, the discussions have started.

After discussions, the draft law was adopted by voting.

Minister Samir Sharifov said the revenues of the state budget for 2017, which will be revised, will make up AZN 16,766,000,000 or 25.2% of GDP, up AZN 511 million or 3.1% from approved budget of 2017. The increase include AZN 250 million of allocations from central banks profit, AZN 135 million of transfers from Ministry of Taxes, AZN 50 million of transfers from the State Customs Committee and AZN 76 million from off-budget receipts.

In the draft law, AZN 7,645,000,000 will be transferred to the state budget from Ministry of Taxes, up AZN 135 million or 1.8% from approved forecast for 2017. These funds will come from non-oil sector. The draft law says AZN 5,805,000,000 is planned to be transferred from non-oil sector, up AZN 135 million or 2.4% by contrast to the approved 2017 state budget.

Transfers from ministry of taxes are forecasted as follows: AZN 2,583,000,000 is forecasted to come from value added, up AZN 85 million or 3.4% in comparison to the approved version of the budget. Other receipts will make up AZN 140,000,000, up AZN 50 million or 55.6% from approved version. Forecast on sanctions and penalties makes up AZN 50 million.

Transfers from State Customs Committee (SCC) will make up AZN 2,250,000,000, up AZN 50 million or 2.3% from approved budget for 2017. Transfers from SCC are forecasted as follows: AZN 1,674,000,000 will come from value added tax, up AZN 35 million or 2.1% in comparison to the approved version; AZN 469 million from customs duties, up AZN 15 million or 3.3% from approved version. Receipts from off-budget revenues will make up AZN 429 million, up AZN 76 million or 21.5% from the approved budget.

Expenditures are planned to increase by AZN 1,041,000,000 to AZN 17,941,000,000, up 6.2% from approved version of the budget. After increase, the expenditures will make up 26.9% of GDP.

Allocations for current expenditures will make up AZN 10,906,900,000 (60.8% of total expenditures), capital expenditures – AZN 5,392,300,000 (30.1%), public debt – AZN 1,641,800,000 (9.1%).

According to functional classification, the expenditures for education, science, health culture, sport and other social protection and social security, culture, art, information, physical education and other fields will make up AZN 5,290,000,000, up AZN 155.4 million or 3.0% from approved version.

AZN 250 million will be allocated to cover loss from lower price of gas sold by SOCAR.

AZN 191 million will be directed to expenditures of state investments, up 7.6% from approved budget.

Moreover, upper limit of external public debt in connection with IBA’s Eurobonds will be increased up to AZN 4.5 billion. The government will allocate AZN 4 billion for restructuring of bank’s liabilities.

In order to increase the off-budget revenues and expenditures of the budget-funded organizations, AZN 76 million is planned in the state budget to be revised.

Local revenues are forecasted at AZN 647 million, local expenditures – at AZN 721.2 million.

2017 budget deficit is forecasted at AZN 1,175,000,000, up AZN 530 million from approved version of the budget.

Compared to the approved version of the budget, revenues of the consolidated budget will increase AZN 2,820,200,000 or 14.1% to AZN 22,840,900,000, expenditures – 3.7% or AZN 1,051,000,000 to AZN 29,818,200,000

Deficit of consolidated budget will make up AZN 6,977,300,000 (10.5% of GDP), down AZN 1,769,200,000 or 20.2% from approved budget.

Consolidated budget deficit without taking into account the SOFAZ revenues will make up AZN 17,654,900,000 (26.5% of GDP).

Revenues and expenditures of Nakhchivan’s consolidated budget will make up AZN 350.6 million.