Increase in transfer from SOFAZ to not harm purpose of budget rule - Azerbaijani minister

The increase in the amount of transfer from Azerbaijan's State Oil Fund (SOFAZ) to the state budget will not harm the objectives of the budget rule, which is the basis of the fiscal policy document, Finance Minister Samir Sharifov said, Azernews reports, citing Trend reports.

He spoke at the plenary session of Azerbaijan's Milli Majlis (Parliament).

The minister said that currently there is a process of reducing Azerbaijan's oil revenues.

"This is because of two things. One is the worldwide decarbonization movement, and the other is the drop in production at our oil fields. This has an adverse effect on budget revenues. This decrease should be offset by revenue from non-oil sources. Non-oil revenues have been increasing year after year in the draft budget for next year. Next year, a large increase is also projected. However, this will not fully compensate for the drop in oil revenues. We have significant obstacles in this regard. These responsibilities are primarily concerned with the restoration of freed lands and their reintegration into the economy," Samir Sharifov added.

He also noted that it is important that funds are also allocated annually from the state budget for these purposes. In this regard, the minister believes that the increase in the transfer from SOFAZ is quite reasonable, without prejudice to macroeconomic stability.