Azerbaijan's parliament approves 2024 federal budget with deficit of 2.2% of GDP

BAKU. Dec 5 (Interfax) - Azerbaijan's parliament, the Milli Majlis, on Tuesday approved in the third and final reading the federal draft budget for 2024 with a deficit of 2.2% of GDP, or 2.59 billion manat.

Interfax's parliamentary correspondent in Azerbaijan reported that federal budget revenues were approved at 34.173 billion manat for 2024 and expenses at 36.763 billion manat.

Federal budget revenues for the next year are calculated based on an average oil price of $60 per barrel.

Within the structure of federal budget revenues in 2024, transfers from the State Oil Fund of the Azerbaijan Republic (SOFAZ) are planned at 12.781 billion manat for 2024, an increase of 8.9% year-on-year.

Revenues from VAT are projected at 7.591 billion manat, profit tax at 5.676 billion manat, income tax at 1.895 billion manat, excise taxes at 1.531 billion manat, and customs duties at 1.475 billion manat.

Within the structure of expenditures in 2024, the government plans to allocate 6.4 billion manat for defense and national security, 4.5 billion manat for education, 4.5 billion manat for social protection and social security, 4.8 billion manat for national purposes, 1.1 billion manat for the agricultural sector, and around 7.9 billion manat for economic activities.

Expenses to service the national debt for 2024 are set at nearly 1.973 billion manat.

The official exchange rate as on December 5, 2023, is 1.7 manat/$1.