Amendments to state budget for 2020 adopted by Azerbaijani parliament in second reading

By Trend

Amendments to the state budget of Azerbaijan for 2020 were discussed at an extraordinary meeting of the Azerbaijani parliament held on August 6, Trend reports.

Based on calculations carried out given the updated macroeconomic forecasts for the current year, the revised state budget revenues for 2020 are envisaged in the amount of 24.124 billion manats ($14.19 billion), which is 35.3 per cent of GDP.

After the proposed changes, the consolidated budget revenues will be nearly 5 billion manats ($2.94 billion) less than the current ones, and the consolidated budget deficit will amount to 8.436 billion manats ($4.96 billion). The decrease in the state budget deficit is due to the reduced domestic demand for petroleum products, as well as the introduction of incentives on some taxes.

As many as 600 million manats ($352.9 million) has been allocated from the state budget for the implementation of support programs. Extra-budgetary revenues of the state budget on taxes and fees shall be reduced by 890.5 million manats ($523.8 million), and the transfer of the State Oil Fund to the state budget and other state budget revenues shall be increased by 850 million manats ($500 million).

Given the above, the revised state budget expenses for 2020 will amount to 27.492 billion manats ($16.17 billion), of which 190 million manats ($111.7 million) will be allocated for placement of bonds in the domestic market.

Following the discussions, the amendments were put to a vote and adopted in the second reading.

($1 USD = 1.7 manat on Aug.6)