According to the Supervisory Board, adjustments for SOFAZ’s budget-2017 are acceptable and a decision has been made to submit these adjustments to the Azerbaijani president for approval.
Oil price of $40 per barrel has been set in the state budget and SOFAZ’s budget for 2017.
In accordance with the currently approved budget, SOFAZ revenues for 2017 are set at 8,370,589,800 manats and expenditures - 14,483,856,000 manats.
The revenues from the sale of Azerbaijani profitable oil and gas are forecast at 7,550,705,300 manats, acre payments - 3.465 million manats, income from oil and gas transit through the Azerbaijani territory - 16.83 million manats.
Moreover, SOFAZ’s revenues from the placement and management of assets are envisaged at 799,094,600 manats. Bonuses paid by investors within oil and gas agreements, or in connection with their implementation are envisaged at 495,000 manats.
Transfers worth 7.5 billion manats to the Central Bank of Azerbaijan in order to ensure macroeconomic stability in the country are SOFAZ’s biggest expenditures. SOFAZ’s transfers to the Azerbaijani state budget will amount to 6.1 billion manats.
Expenditures for the improvement of living conditions of refugees are envisaged at 90 million manats, expenditures for the reconstruction of the Samur-Absheron irrigation system - 70 million manats, costs within the Baku-Tbilisi-Kars railway construction project will amount to 165.825 million manats, costs for financing the state program on education of Azerbaijani youth abroad in 2007-2015 - 29.304 million manats.
Moreover, SOFAZ’s budget for 2017 provides for the expenditures for financing the state’s share in the Southern Gas Corridor projects worth 496.155 billion manats.
Expenditures on the management of SOFAZ are set at 32.572 million manats.
In accordance with the budget of expenditures on the management of SOFAZ in 2017, labor payment will amount to 6,872,008 manats, the costs for procurement of goods and services will amount to 5,004,640 manats, expenditures for grants and other payments will stand at 674,460 manats.
Expenditures for pensions and social benefits are envisaged at 80,000 manats, costs for the purchase of non-financial assets - 6,126,100 manats, and 13,814,792 manats will account for other expenses.
As of July 1, 2017, assets of SOFAZ have increased by 4.96 percent, as compared to early 2017 ($33.147 billion), and totaled $34.79 billion.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ’s regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include: accumulation of resources and placement of the Fund’s assets abroad in order to minimize the negative effects on the economy, prevention of “Dutch disease” to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
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