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.