Azerbaijani government proposing amendments to annual budget over increase in oil prices

By Azernews

By Ayya Lmahamad

The average export price of a barrel of Azeri Light crude oil has exceeded the one set in the country's state budget by more than two times, Azerbaijan's Finance Minister Samir Sharifov said.

He made the remarks during a discussion of an amendment to the 2022 state budget at an extraordinary parliamentary session, Azernews reports, citing Trend.

"The average export price of a barrel of Azeri Light crude oil in the first five months of 2022 was $106.3, exceeding its base price for calculating state and consolidated budget revenue by more than two times," he said.

The minister emphasized that the macroeconomic results of the first four months of the year, fiscal performance indicators for five months, and dynamics in the trading market created the grounds for updating macroeconomic forecasts for the current year.

He stated that given the ongoing global processes and expectations of rather high energy prices the average annual export price of crude oil in the state budget of Azerbaijan was set at $85 and the average annual inflation at 12.5 percent.

"Based on this, the forecast AZN 86.6 billion ($50.9bn) for GDP for 2022 will be amended to increase up to AZN 115.4 billion ($67.8bn), including the non-oil sector up to AZN65.7 billion ($38.5bn). The real GDP growth rates are projected at 5.5 percent," he said.

Child benefits increase

Moreover, Parliament's Committee on Labour and Social Policy Chairman Musa Guliyev said that Azerbaijan plans to increase funds to be allocated for child benefits by AZN4 million ($2.3m) up to AZN24 million ($14.1m).

It should be noted that the child benefits have increased in Azerbaijan from AZN200 ($117.65) to AZN300 ($176.47) since the beginning of 2022.