Azerbaijan’s consolidated budget is becoming less dependent on oil, Vusal Gasimli, executive director of Azerbaijan’s Center for Analysis of Economic Reforms and Communications, told Trend agency. Next year, the share of oil gross domestic product in the state budget will decrease to 29.1% which is an important sign of budget stability. The director noted that the state budget for 2020 and three subsequent years is based on new budget rules, according to which the budget expenditures cannot grow by more than 3% per year.
“After making progress in the field of infrastructure, middle class development and army building, Azerbaijan by applying the new budget rules aims to ensure financial stability,” Gasimli added. “Thus, taking into account the forecast of inflation of 4.6% next year, the consolidated budget will reach 29.4 bln manat ($17.3 bln), which is 7.7% more than this year.”
In general, the 2020 state budget defines specific tasks to improve the sustainability of the budget and its individual components, including pension and healthcare expenditure, the director said.