Azerbaijan to allocate $1.7bn for reconstruction of liberated lands in 2023

By Ayya Lmahamad

The funds allocated for the reconstruction of Azerbaijan's liberated territories are forecasted to reach AZN3 billion ($1.7bn) in 2023, Azernews reports per Finance Ministry.

These expenditures will account for 9 percent of the state budget expenses and 2.8 percent of GDP.

Azerbaijan's Finance Ministry has submitted a draft state budget and the consolidated budget for 2023 to the Cabinet of Ministers.

Healthcare spendings

The state budget expenses for the healthcare sector are forecasted at AZN1.9 billion ($1.1bn) in 2023.

The forecasted figure exceeds this year's indicator by 11.5 percent or AZN196.3 million ($115.3m)

Spending on defense, national security

Moreover, according to the preliminary indicators, the state budget expenditures on the country's defense and national security are forecasted at AZN5.3 billion ($3.1bn) for 2023. This figure exceeds 2022's indicator by 4.6 percent or AZN235.3 million ($138.2m).

Funds for social protection

Meanwhile, Azerbaijan's state budget expenditures on social protection are forecasted at AZN4.4 billion ($2.5bn), which is 18.3 percent or AZN683.2 million ($401.3m) more than this year's indicator.

Budget revenue & expenditures

According to the consolidated budget for 2023, budget revenue is projected at AZN32.9 billion ($19.3bn) and expenditures at AZN37.8 billion ($22.2bn).

Moreover, a deficit of AZN4.9 billion ($2.9bn) is projected in the consolidated budget.

National currency's exchange rate, annual inflation rate

The exchange rate of the national currency is forecasted to remain stable in 2023. Moreover, according to the macroeconomic forecasts of the Economy Ministry, the exchange rate of the manat to the US dollar in 2023 was taken at the level of AZN1.7.

At the same time, the average annual inflation rate is expected to decrease to 6.9 percent in 2023. The country's non-oil sector is projected to account for 78 percent, while the oil sector may constitute 22 percent of GDP.