Azerbaijan revises state budget, halving cost of crude oil

Expected crude oil price in Azerbaijan’s revised budget has been halved. The oil price in the draft budget adopted in October 2015 was $50/bbl, while the revised budget suggests $25/bbl.

Finance Minister of Azerbaijan Samir Sharifov says the amendments were necessary due to the falling oil price in the world markets and devaluating national currency-manat.

In the revised budget of Azerbaijan, revenues and expenditures have been increased by 15.5% and 13.7%, respectively. Consequently, the budget deficit fell from USD1.8bln top USD1.7bln.

The revised budget will come into effect after the president approves it. Azerbaijani manat has plummeted 35% in the period from late December up to late January. The government had to impose a 20% tax on large money transfers abroad to deter massive outflow of capital.