Azerbaijan Lays Oil Price in Budget for 2021 at $ 40 per Barrel

The Azerbaijani government has revised the forecast oil price in the state budget for 2021 and increased it to $ 40 per barrel

“The draft budget for the next year has been submitted to parliament. If in autumn the initial version of the budget was calculated from the oil price of $ 35 per barrel, then in the draft presented in the parliament the price is set at $ 40 per barrel, ”the Ministry of Finance of the Republic of Azerbaijan said.

At the same time, the Ministry of Finance believes that if in 2021 the average oil price on world markets is at $ 35 per barrel, then this will lead to a decrease in forecasts for state budget revenues for next year by 1.3%.

In the state budget of Azerbaijan for 2020, the oil price is set at $ 35 per barrel.

It should be noted that the government of Azerbaijan forecasts GDP growth at 3.4% for 2021, while oil GDP will grow by 4%.

By the end of 2020, the government predicts a decline in GDP at 4%, the nominal volume of gross product – 71.8 billion manats ($ 42.2 billion). At the same time, in the oil sector, the decline will be 5.8%.

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