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Possible effects of oil prices on the budget for next year announced

18 October 2019 18:59 (UTC +04:00)

As 52.7% of consolidated budget revenues are formed by oil revenues, a possible reduction in oil prices will result in a reduction in consolidated budget revenues and an increase in consolidated budget deficit, according to the draft state budget for 2020, presented by the Ministry of Finance, APA reports.

According to the draft, during the calculation of consolidated budget revenues for 2020, if the selling price of a barrel of oil envisaged $ 55, falls to $ 40, consolidated budget revenues may decrease 16,6% in comparison to forecast indicator.

Though, a possible reduction in oil prices in 2020 is not expected to have a significant impact on the state budget. So that, the main part of the state budget's oil revenues is the transfer from the State Oil Fund, which was determined in manat terms, not in foreign currency during the budgeting process.