The amount of the state budget of Azerbaijan in 2022 is predicted to be 26.4 billion manat ($15.5 billion), which will amount to 32.5 percent of GDP, AzVision.az reports referring to the Ministry of Finance.
The projected amount of income exceeds the approved figure for 2021 by 3.8 percent. The oil sector will account for 52.4 percent of revenues, while the non-oil sector will account for 47.6 percent.
It is predicted that 85.7 percent of budget revenues from the oil sector will be transferred from the State Oil Fund of Azerbaijan, and 14.3 percent will be receipted through the tax authorities.
The continuation of tax and customs reforms, as well as the reduction of the impact of the pandemic, allow us to forecast an increase in budget revenues from the non-oil sector by 1.8 billion manat ($1 billion) in 2022, which is by 19.3 percent more than in 2021 (with the exception of deductions from the Central Bank's profits and transfers from the Guarantee Fund for state Debt and guarantee obligations).
State budget expenditures in 2022 will increase by 1.5 percent compared to the approved indicator for 2021 and will amount to 28.9 billion manat ($17 billion), or 35.6 percent of GDP, of which 68.7 percent are current expenditures, 24.7 percent are capital expenditures and 6.6 percent are expenses related to servicing public debt and obligations.
Due to the increase in wages and social benefits in the specified period, an increase in current expenditures is projected by 10.5 percent compared to the previous year, a decrease in capital expenditures by 14.1 percent, and expenses related to servicing public debt and obligations by 13 percent.
Thus, the state budget deficit in 2022 will amount to 2.5 billion manat ($1.4 billion), which is 17.6 percent less than the approved figure for 2021. This indicator is 3.2 percent of GDP. The deficit will be covered by the balance of the single Treasury account (45.2 percent), internal and external borrowings (27.3 percent), loans attracted on the basis of project financing (23.1 percent) and proceeds from privatization (4.4 percent).