(MENAFN- AzerNews)
Nazrin Abdul Read more
The recent disclosure of the "Execution of the 2023 state budgetof the Republic of Azerbaijan" illuminates a robust trajectory inthe nation's economic landscape over the past year, Azernews reports.
Allocations from the state budget of 2023, amounting to 5,581.6million manats, have been earmarked for the reconstruction andrejuvenation of territories liberated from occupation.
Of these funds, 86 percent, totaling 4,800 million manats, aredesignated for planned expenses associated with the revitalizationof these regions. Further breakdown reveals allocations fromvarious funds, including the President of the Republic ofAzerbaijan's reserve fund and the state budget's reserve fund,highlighting a meticulous financial strategy.
145.4 million manats, or 2.6 percent, come from the President ofthe Republic of Azerbaijan's reserve fund, 138.9 million manats, or2.5 percent, come from the state budget's reserve fund, 32.5million manats, or 0.6 percent, come from state capital investment(investment costs), and 464.8 million manats, or 8.3 percent, areallocated to purposeful expenses provided for in the statebudget.
A significant portion of the allocated funds, totaling 5,245.5million manats, is directed towards infrastructure projects,underscoring the nation's commitment to revitalization efforts investments encompass the construction andreconstruction of road infrastructure, residential complexes,hydropower plants, and other critical infrastructural assets,reflecting a comprehensive approach to development.
Out of the allocated funds, 5,245.5 million manats aredesignated for the construction and reconstruction ofinfrastructure projects, including 3,773.8 million manats for thedesign, construction, and reconstruction of road infrastructures(3,471.8 million manats for highways, 302 million manats forrailways), design and construction of new residential complexes(839.5 million manats), construction of new hydropower plants andenergy hubs (337.4 million manats), reclamation works (245.5million manats), implementation of cadastral services (16.6 millionmanats), improvement of drinking water supply of areas (6.6 millionmanats), construction of tourism infrastructure (4.3 millionmanats), creation of solid household waste infrastructure (2.9million manats), and other infrastructure projects (18.9 millionmanats). Additionally, 110.2 million manats are allocated for mineclearance, 106.8 million manats for the construction and repair ofdefense and law enforcement facilities, 59.7 million manats forsocial projects (education, healthcare, culture, sports, and othersuch social events), and 59.4 million manats are allocated to othermeasures.
Moreover, the report highlights a commendable surge in theexport of non-oil and gas products, registering a notable increasein both actual prices and real terms compared to the previous year uptrend underscores the diversification efforts withinAzerbaijan's economy, fostering resilience and sustainability.
In the report, export of non-oil and gas products saw a notableincrease of 9.8 percent in actual prices and 3.9 percent in realterms compared to the previous year, reaching a total of $3.348billion.
Additionally, the report indicates a 17.1 percent growth in thecountry's total foreign exchange reserves by the end of 2023,surpassing $68.5 billion. This surplus balance of payments,equivalent to 94.7 percent of the gross domestic product, exceedsforeign public debt approximately 10.6 times and supports 34 monthsof goods and services imports.
Despite a slight decrease of 1.1 percent in industrial productproduction, the non-oil and gas sector demonstrated resilience withan 8 percent increase, contrasting a 2 percent decrease in the oiland gas sector.
This divergence highlights the evolving dynamics withinAzerbaijan's economic landscape, with a shifting emphasis towardsnon-oil sectors.
Investments in main capital witnessed a significant rise of 9.8percent compared to the previous year, totaling 20.3 billionmanats. The majority of investments (80.9 percent) were sourcedinternally, with $6.3 billion (30.9 percent) directed to the oilsector and $14 billion (69.1 percent) to the non-oil sector, the volume of funds directed to the non-oil sector saw arobust 9.3 percent increase.
This influx of investments underscores confidence inAzerbaijan's burgeoning non-oil industries, signaling a paradigmshift in the nation's economic trajectory.
Furthermore, the substantial allocation towards defence andnational security expenditures underscores Azerbaijan's unwaveringcommitment to safeguarding its sovereignty and territorialintegrity.
For the purpose of strengthening the country's defence potentialand further improving the material-technical support of the armedforces, an amount of 1,392.1 million manats has been allocated fromthe state budget, reserve funds, and other reserve funds. With thisallocation, defence and national security expenditures in the statebudget for 2023 amounted to 19.9 percent, or 7,246.9 millionmanats.
The notable increase in allocations for special defence projectsfurther underscores the nation's proactive approach towardsbolstering its defence capabilities.
It is noted that this amount is 1,560.5 million manats, or 27.4percent higher compared to 2022. Last year's state budget allocated5,854.8 million manats for defence and national securityexpenditures, representing an increase of 958.5 million manats, or19.6 percent, compared to 2022. These expenditures constituted 4.8percent of GDP (compared to 1.1 percent in 2022) for the Ministryof Defence and 16.1 percent (compared to 0.8 percent in 2022) forstate budget expenditures.
In addition to the state budget's additional reserves, 815.9million manats have been allocated for special defence projects andinitiatives, totaling 3,883.9 million manats for the year, which is994.5 million manats (34.4 percent) more than in 2022.
In summation, the execution of the 2023 state budget of theRepublic of Azerbaijan reflects a judicious balance betweenreconstruction efforts, economic diversification, and nationalsecurity imperatives. Moving forward, these strategic initiativesare poised to underpin Azerbaijan's continued socio-economicdevelopment and resilience in the face of evolving globalchallenges.
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