Azerbaijan's Finance Minister: Decrease in budget revenues expected this year, due to pandemic”
- 04 August 2020
“The spread of coronavirus pandemic has lead to an increase in negative trends in the global economy,” said Minister of Finance Samir Sharifov at the meeting of the Committee of Economic policy, industry, and entrepreneurship during the discussion of the draft law on making an amendment to the law of the Republic of Azerbaijan On the state budget of the Republic of Azerbaijan for 2020, APA reports.
He said the International Monetary Fund has updated its forecasts in a number of areas: “Including its forecasts regarding the price of crude oil and oil products which is of interest for us. The processes taking place worldwide, the rise of coronavirus infection to the pandemic level, its negative impact on the whole global economy have caused deterioration of the payment balance of our country. The quarantine regimes applied during this year have resulted in the weakening of entrepreneurship in the country. Logically, during the initial 6 months of the current year, the state budget execution indicators have been fulfilled in terms of both incomes and expenditures even at the level better than the forecasted one. However, it should be noted that although the state budget execution was positive in the first half-year period, the macroeconomic indicators allow for predicting the emergence of financial problems in the second semester. The declines are being observed in most sectors of the economy. Therefore, the Ministry of Economy has reconsidered its forecasts in the new conditions. The oil price is also being reconsidered. The oil price previously taken as $55 is forecasted to be $ 35. According to the outcomes of the past 6 months, there are already revenue receipts from incomes. Taking into consideration those receipts as well, the declines in receipts to the budget are expected in the current year”.