Over 54% of Azerbaijan’s State Budget Revenues Expected from Oil Sector in 2021

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Revenues of the state budget of Azerbaijan for 2021 are projected at 25 billion 427 million manats (an increase of 5.4% compared to the forecast for 2020), expenses – 28 billion 543 million manats (an increase of 3, 8%).

The state budget deficit for next year is projected at 3 billion 116 million manats or 4.1% of GDP.

State budget revenues for next year are calculated from the oil price of $ 40 per barrel (for 2020 – $ 35 per barrel).

In the structure of revenues, 13 billion 776 million manats or 54.2% (according to the forecast in 2020 – 58%) is planned to be provided at the expense of revenues from the oil sector. Compared to the forecasted indicators of the current year, oil revenues of the state budget in 2021 will decrease by 214 million manats, or 1.5%.

Transfers to the state budget from the State Oil Fund of Azerbaijan for 2021 are envisaged in the amount of 12 billion 200 million manats (unchanged) or 48% of all budget revenues.

In 2021, it is planned to receive revenues in the form of taxes from the oil sector in the amount of 1 billion 576 million manats (almost the level of 2016): payments by the State Oil Company of Azerbaijan (SOCAR) will amount to 1 billion 136 million manats (less by 104 million manats compared to the forecasted indicators of 2020), payments by companies under PSA contracts – 440 million manats (less by 110 million manats, and 391 million manats less than actual payments in 2019).

It should be noted that the peak level of tax payments by the oil sector of Azerbaijan fell on 2013 – 2.9 billion manats ($ 3.72 billion).

The draft state budget for 2021 provides 2.2 billion manats to finance reconstruction measures in the liberated territories.

* The forecast for state budget revenues for 2020 is 24 billion 124 million manats, and expenditures – 27 billion 492.2 million manats. The deficit of the state budget for 2020 is projected at 3 billion 368.2 million manats or 4.9% of GDP. 

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