World Bank: Surging revenues drove fiscal balance of Azerbaijan's state budget to surplus of 3.4%

Surging revenues drove the fiscal balance of Azerbaijan’s state budget to a surplus of 3.4% of GDP by end-October, compared to 2% of GDP in end-September, Report informs, citing the World Bank’s Azerbaijan Monthly Economic Update – December 2022.

“The state budget recorded a surplus in October owing to strong revenue performance. State budget revenues doubled in October compared to one year ago, driven by a surge in energy revenues. Energy revenues increased by 162 percent in nominal terms times (yoy – year–on-year) in October due to soaring profit tax payments from a company operating a major natural gas field. Non-energy revenues increased by 20.8 percent (yoy) in October, in line with the robust activity in non-energy sector. Higher than expected revenues enabled the government to rely less on SOFAZ transfers, which fell by 14 percent (yoy) in the year to date. Budget spending rose by 10.6 percent (yoy) in October, driven by a 25 percent (yoy) increase in capital spending and, to a lesser extent, by current spending (up by 5.7 percent yoy),” the World Bank said.