Azerbaijan using $60/barrel oil price in 2023 budget

BAKU. Sept 21 (Interfax) - The Finance Ministry of Azerbaijan has prepared a draft state budget for 2024 based on an average oil price of $60 per barrel, the Ministry of Finance told Interfax.

This figure corresponds to the oil price budgeted for the current year. In the 2022 budget, $50 per barrel was used.

The state budget deficit for 2024 is projected at 2.59 billion manat, or 2.2% of GDP (the 2023 budget foresaw a deficit of 2.4% of GDP). The Ministry of Finance projects state budget revenues for 2024 at 33.765 billion manat (-0.4% of the 2023 figure), and spending at 36.355 billion manat (-0.7%).

As for income, 16.756 billion manat, or 49.6%, is forecast to come from oil and gas, and 17.9 billion manat, or 50.4% from other sectors. As shares of state budget revenue for 2023, these sectors contribute 52.3% and 47.7%, respectively.

Revenues to the state budget in 2024 from the State Tax Service are forecast at 13.865 billion manat (-7.5% YoY), the Finance Ministry said. Transfers to the state budget from the State Oil Fund (SOFAZ) are forecast at 12.781 billion manat (+8.9 YoY and revenues from Customs are forecast to be 5.9 billion manat (+3% YoY).

State budget spending is forecast at 6.421 billion manat, or 17.7% of all expenditures for defense and national security: 4.55 billion manat for education; 4.542 billion manat for social protection and social security; 4.815 billion manat for national purposes; 1.11 billion manat for the agricultural sector; and 7.38 billion manat for economic activity.

The bulk of the 2024 state budget deficit will be covered by two sources: 1.854 billion manat from loans, and 105 million manat in revenues from privatization, the finance Ministry said.

The official exchange rate as of September 21 is 1.7 manat/$1.