Politics 20:00 02/12/2017 Region

Authorities in Azerbaijan face criticism over ‘unjustified’ budget

Azerbaijan’s parliament passed on Friday a budget for 2018 based on an oil price of $45 per barrel and foreseeing 1.5 percent growth in gross domestic product (GDP) next year, Reuters reported.

A recent slide in the price of oil, which with gas accounts for about 75 percent of state revenues and 45 percent of GDP, has hit growth, the budget, the balance of payments, the manat currency and foreign exchange reserves.

Azeri GDP declined 0.7 percent year-on-year in January-October this year, and Moody’s said in September it expected the Caucasus republic’s economy to contract for a second consecutive year in 2017. Azeri GDP shrank by 3.8 percent in 2016. The government expects the economy to grow by 1 percent this year.

The budget sees annual inflation slowing to 6.1 percent in 2018 from 13.2 percent anticipated this year. Azerbaijan’s budget deficit is expected to fall to 900 million manats ($529 million) in 2018 from 1.175 billion manats expected this year.

Revenues are seen at 20.1 billion manats in 2018, up from 16.8 billion projected for this year. Spending is expected at 21.1 billion manats, up from 17.9 billion in 2017.

Kavkazuzel news outlet wrote that Azerbaijani independent economists slammed the country’s budget. “The parameters laid at the 2018 budget show it is still vastly dependent on oil. As in previous years, the revenues are made from transfers of the State Oil Fund SOFAZ, which would equate to 45 percent of the budget’s total revenues next year. Given the amount of the taxes by oil companies in Azerbaijan, it will cover only 2/3 part of the budget revenues. That means the reforms declared by the leadership aimed at the development of the non-oil sector in Azerbaijan have produced little result,” Gubad Obadoghlu, member of the Public Chamber of Azerbaijan told. He next pointed to the lack of budget transparency, where around 40 percent of the expenditures are closed to the public.

Natig Jafarli of the Republican Alternative Movement (ReAl), in turn, spoke of the necessity of publishing budget implementation data on the finance ministry website, which is not a practice in Azerbaijan. “The public remains unaware where the millions of from oil revenues are spent,” Jafarli said.

The 2018 budget envisages 11% growth on the basic standard of living to stand at 173 manats ($102) for the working population, 144 manats ($84.78) for pensioners and 154 manats for children.


Jafarli insists while drawing the number of the minimal living standard the authorities took no notice of the inflation which has stood at 14% this year. Furthermore, as the expert suggested, the government sought to supplement the budget by taxes and excise fees which would inevitably entail a price hike.   

Political commentator Anton Yevstratov was the next who reflected on the Azerbaijani budget labeling it as “miserable”. “In 2018 Azerbaijan will spend $1.6 billion on security and defense. Yet the issue remains for Baku to make payments for the already signed contracts. As usual, Azerbaijan comes up with unjustified costs such as buying MIG-29 և SU-25 bombers which would hardly overcome Armenia’s and Artsakh air defense,” wrote the analyst in Eadaily.com.



Source Panorama.am
Share |
Տեքստում սխալ կամ վրիպակ նկատելու դեպքում, ուղարկեք խմբագրին հաղորդագրություն` նշելով տվյալ սխալը, այնուհետև սեղմելով Ctrl-Enter:

Newsfeed

17:13
Public figure accuses Armenian authorities of attempting to intimidate him
Public figure Hovhannes Avetisyan, an expert in public finance management, accused the Armenian authorities of repression and crackdown on their...
16:34
Iran's supreme leader threatens Israel and US with 'crushing response'
Iran’s supreme leader on Saturday threatened Israel and the U.S. with “a crushing response” over attacks on Iran and its...
16:15
Armenia offers condolences to Serbia over tragic collapse at railway station
Armenia has extended condolences to Serbia following the tragic collapse at a railway station, which killed at least 14 people and...
16:00
Armenian lifter Alexander Lazaryan crowned junior European champion
Armenian weightlifter Alexander Lazaryan bagged a gold medal at the European Junior and U23 Championships being held in Raszyn, Poland, from...
15:36
Spiritual leaders urged to raise awareness on injustice against Artsakh Armenians ahead of COP29
His Holiness Catholicos Aram I of the Holy See of Cilicia, His Beatitude Catholicos-Patriarch Raphaël Bedros XXI of the Armenian Catholic...
15:00
Showers possible in Yerevan on Sunday
Clear weather is expected in Armenia on Saturday and later next week. Rain is forecast for some parts of the country on Sunday and Monday,...
14:35
Catholicos Aram I, Ocampo discuss issues related to Artsakh
Luis Moreno Ocampo, the first prosecutor of the International Criminal Court (ICC), on Friday contacted His Holiness Catholicos Aram I by...
13:53
Islam Makhachev vs. Arman Tsarukyan reportedly targeted for UFC 311 on January 18
Islam Makhachev vs. Arman Tsarukyan rematch is the only fight that makes sense in the lightweight division at the moment. The champ is running...
13:27
Armenian Genocide denial risks new tragedies, MP warns
Opposition lawmaker Tigran Abrahamyan blasted Foreign Minister Ararat Mirzoyan’s latest genocide remarks as dangerous for Armenia’s...
12:46
Urgent action needed to safeguard integrity of COP29 as fossil fuel influence looms large in Baku, report warns
We are days away from the start of COP29 in Azerbaijan. After previous hosts Egypt and the UAE, many had hoped for a more promising (and less...
12:30
Armenian church marks Feast of All Saints
The Armenian Apostolic Church on Saturday celebrates the Feast of All Saints, also called All Saints' Day. The day...
12:01
Paris Masters: Khachanov through to semi-finals
Russian-Armenian Karen Khachanov won against Bulgarian Grigor Dimitrov, the No 8 seed, 6-2, 6-3 to move into the last four of Paris Masters at...
11:30
Analysis: Aliyev's daughters reportedly control business empire worth over $13 billion
Michael Rubin, a senior fellow at the American Enterprise Institute and director of policy analysis at the Middle East...
11:00
Armenia's Milena Khachatryan wins silver at U23 European Championships
Armenian weightlifter Milena Khachatryan grabbed a silver medal at the European Junior and U23 Championships being held in Raszyn, Poland, from...
17:23
Russia urged to press for release of Armenian prisoners held by Baku
Opposition MP Artsvik Minasyan urged Russia to press for the release of Armenian prisoners, including Artsakh’s military and political...
16:45
Opposition MP: Armenian leadership 'legitimizes' Azeri crimes
The Armenian Revolutionary Federation (ARF) staged a protest outside the UN office in Yerevan on Friday, demanding immediate action to secure...
16:04
Temperatures to drop in Armenia from Sunday
Clear weather is expected in Armenia on Friday, Saturday and later next week. Rain and snow are forecast for some parts of the country on...
15:36
FC Urartu joins calls for Armenian football chief's resignation
FC Urartu has joined the Armenian national team and Premier League fan movements and clubs in demanding the resignation of the current...
15:21
Protesters outside UN office demand release of Armenian prisoners in Baku
Protesters gathered outside the UN office in Yerevan on Friday to demand the immediate release of Armenian prisoners of war and...
14:45
'Brat' is Collins Dictionary's word of the year
Collins Dictionary has declared “brat” – the album title that became a summer-living ideal – its 2024 word of the...
14:21
Armenian Genocide Museum head blasts Mirzoyan's remarks
Historian Hayk Demoyan, Director of the Armenian Genocide Museum-Institute in Yerevan, lambasted Armenian Foreign Minister Ararat Mirzoyan for...
13:36
World Youth Chess Championships underway in Brazil
The FIDE World Youth Chess Championships 2024 are being held in Florianopolis, Brazil, from October 29 to November 9. After the third round,...
13:04
Russia says it is unhappy with Turkey's arms supplies to Ukraine
Russia is "surprised" that Turkey continues to supply Ukraine with weapons while trying to act as a mediator in the conflict between...
12:36
Spain floods death toll rises to 158
At least 158 people have died in Spain's worst flooding disaster in generations as rescuers battle odds to find survivors, BBC News...
12:17
Yerevan subway overcrowded in morning rush hour
The Yerevan Metro was overcrowded on Friday morning as passengers struggled to reach work and classes from the Garegin Nzhdeh station. The...
11:35
Armenia to host UN Biodiversity Conference in 2026
Armenia will host the next UN Biodiversity Conference of the Parties in 2026, the Ministry of Envionment reported. "In 2026,...
11:16
Lifter Emma Poghosyan crowned junior European champion
Armenian weightlifter Emma Poghosyan has clinched a gold medal at the European Junior and U23 Championships being held in Raszyn, Poland,...
11:01
Paris Masters: Khachanov edges out Popyrin to move into quarter-finals
Karen Khachanov moved into the quarter-finals of Paris Masters by defeating Australian Alexei Popyrin 7-6 (5), 6-4 at the Accor...
17:12
Biden bites baby dressed as chicken at Halloween event
U.S. President Joe Biden playfully bit a stable of adorable, dressed-up tots during a Halloween celebration at the White House on...
16:57
Opposition factions seek parliament debate on Armenian prisoners
The opposition Hayastan and Pativ Unem factions have initiated an emergency parliament debate on a draft statement calling for the release of...

Follow us and get updates!

Most popular articles

{"core.blocks.header.spell_message1":"Selected mistake: ","core.blocks.header.spell_message2":"Send a message about the mistake?"}