Azerbaijan may revise state budget forecasts in mid-year

The Azerbaijani Government may revise the forecasts of the state budget for 2022 in the middle of the year in order to increase investment spending, Report informs referring to the updated Asian Development Outlook (ADO) 2022 of the Asian Development Bank.

Investment is projected to expand by 2.0% in 2022 and 3.5% in 2023 as the government develops green energy and invests in core infrastructure in Karabakh, and as private investment also expands.

“Public and publicly guaranteed debt should increase to 19.3% of GDP in 2022, largely from the domestic market to finance budget deficit and decline to 18.8% in 2023 in line with the government’s debt management strategy, with external borrowing and sovereign guarantees held to $800 million in 2022,” reads ADO 2022.

According to forecasts approved at the end of last year, state budget revenues for 2022 are set at 26.816 billion manats, 10.2% more than the forecast for 2021. State budget expenditures were approved at the level of 29.879 billion manats (an increase of 4.7% from the forecast for 2021).

In 2022, budget revenues from the oil sector will amount to 14.69 billion manats or 54.8% of all revenues, from the non-oil sector – 12.126 billion manats or 45.2% of revenues.

State capital investments for 2022 are provided at the level of 2.789 billion manats (a decrease of 1.6% compared to the forecast for 2021), 2.2 billion manats - for the restoration of territories liberated from occupation (maintained at the level of 2021), the rest - other expenses.

The state budget deficit in 2022 is projected at 3.063 billion manats or 3.5% of GDP.