(MENAFN- AzerNews)
Nazrin Abdul Read more
The Economic Policy, Industries and Enterprising Committee ofthe Azerbaijan Milli Majlis convened on May 27 to deliberate onamendments to the Law "On the State Budget of the Republic ofAzerbaijan for 2024," Azernews reports.
The discussions highlighted crucial adjustments required tonavigate evolving economic landscapes and address emergingchallenges.
Revenue and Expenditure Adjustments: Therevised 2024 state budget anticipates a significant revenue surge,reaching 36 billion 353 million manats, a commendable 6.4 percentincrease from the original projection. However, this expansionnecessitates a proportional rise in expenses, slated to climb by 8percent to 39 billion 707.3 million manats. Such adjustmentsinvariably widen the budget deficit to 3 billion 354.3 millionmanats, emphasizing the imperative of prudent fiscal management andresource allocation strategies.
The substantial increase in both revenues and expendituresunderscores the government's proactive stance towards addressingeconomic exigencies while ensuring sustainable financialstability.
State Oil Fund Budget Projections: The StateOil Fund's revised budget reflects a robust revenue forecast, withan expected surge of 16.9 percent to 14 billion 109.2 millionmanats. This uptick heralds positive economic prospects, albeitnecessitating vigilant oversight to prevent misappropriation andensure optimal utilization of resources.
The projected revenue boost underscores the critical role of theState Oil Fund in driving economic growth and resilience amidstvolatile global oil markets.
Foreign Trade Performance: Azerbaijan's foreigntrade exhibited resilience, with transactions totaling 9.9 billionUS dollars and a favorable trade surplus of 2.5 billion dollars performance underscores the nation's competitiveness andresilience in global markets, necessitating sustained efforts todiversify trading partners and bolster export-orientedindustries.
The positive trade balance reflects Azerbaijan's capacity toleverage its strategic geographical location and robust exportsectors to mitigate external economic shocks.
Oil Sector Revenues and Export Prices: Thenotable surge in the average export price of "Azeri Light" crudeoil to 87.3 dollars per barrel in January-April 2024 presentslucrative revenue opportunities. However, it also underscores theinherent volatility of oil markets, necessitating prudent fiscalplanning and diversification efforts to mitigate risks associatedwith overreliance on hydrocarbon revenues.
While the surge in oil prices presents short-term revenuewindfalls, sustainable economic growth hinges on diversificationefforts aimed at reducing dependency on oil revenues.
Shift Towards Non-Oil Revenues: The upwardtrajectory of non-oil revenues, accounting for 51.1 percent of thestate budget, signifies the success of diversification initiatives a shift underscores the resilience of non-oil sectors andunderscores the imperative of fostering an enabling businessenvironment to sustain momentum and spur long-term economicgrowth.
The ascendancy of non-oil revenues signals a paradigm shift inAzerbaijan's economic landscape, necessitating sustained efforts tobolster the competitiveness of non-oil sectors and attractdiversified investment.
Conclusion and Strategic Imperatives: Theamendments to the 2024 state budget epitomize proactive measures toadapt to evolving economic realities and promote sustainabledevelopment. To capitalize on emerging opportunities and mitigaterisks, policymakers must prioritize fiscal prudence, enhancetransparency and accountability mechanisms, and pursue structuralreforms to diversify the economy.
Strategic imperatives include fostering innovation, investing inhuman capital development, and fostering robust institutionalframeworks to sustain economic resilience and drive inclusivegrowth.
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