Finance

Home page

Finance

MP: $1 change in oil price costs AZN 13M in state budget

07 November 2017 11:20 (UTC +04:00)

Reduction of 2018 state budget’s dependence on oil is very serious issue, MP Vahid Ahmadov said during discussion of state budget package for 2018 at the parliament.

According to him, oil price, as an external factor, and problems in banking system, as a internal factor, affect the state budget: “Base oil price in the state budget makes up $45. This is an estimable case. However, we must not forget that oil price may change in every moment. $1 change in oil price costs AZN 13 million in the state budget. Moreover, it’s needed to take into account the impact of oil price on manat exchange rate. Moreover, AZN 9.2 billion is planned to be transferred from SOFAZ in 2018, whilt this figure was AZN 6.1 billion in 2017. Receipts from oil sector exceed the non-oil sector by 40%. These issues may be discussed”.

MP also spoke about the public debt: Azerbaijan’s public debt makes up 18% of GDP. However, this figure makes 80% or even 100% of GDP in some European countries. But structure of loans given under the state guarantee should be considered”.