He made the remarks during discussion of amendments to Azerbaijan’s state budget for 2016 at a meeting of the country’s parliamentary committee for economic policy, industry and entrepreneurship.

Sharifov said that the amendments to the country’s state budget are due to the economic processes taking place in the world.

“They are also related to the fact that supply exceeded demand on the energy resource market, and oil consumption in major countries significantly reduced,” said the minister. “In turn, this is a negative factor for developing oil producing countries. For this reason, new challenges emerged for Azerbaijan’s economy.”

“Of course, these realities lead to a sharp reduction in foreign currency revenues and payment balance surplus,” Sharifov said. “All these factors make it necessary to amend the state budget.”

Sharifov went on to add that the parameters of the state and consolidated budgets were adjusted considering the oil price at $25 per barrel.

He said that the adjusted state budget revenues are expected at 16.822 billion manats, which is 15.5 percent more than the approved estimates. Expenditures are forecasted at 18.495 billion manats, and the state budget deficit will amount to 1,673 billion manats, according to the minister.

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