BAKU, Azerbaijan, August 19. Azerbaijan’s state budget revenues are expected to reach 39.2 billion manat ($23 billion) by the end of 2025, which is 836 million manat ($491.7 million), or 2.2 percent, higher than the approved forecast.
Data obtained by Trend from the Ministry of Finance indicates that 49.1 percent, or 19.2 billion manat ($11.2 billion), of revenues will come from the oil and gas sector, while 50.9 percent, or 19.9 billion manat ($11.7 billion), will be generated by the non-oil and gas sector.
Compared to approved figures, revenues from the oil and gas sector are expected to increase by 470 million manat ($276.4 million), or 2.5 percent, and revenues from the non-oil and gas sector by 366 million manat ($215.2 million), or 1.9 percent.
The projected revenues include 16.3 billion manat ($9.5 billion), or 41.6 percent, from taxes and duties; 6.6 billion manat ($3.8 billion), or 16.8 percent, from customs duties and import-related tax payments; 14.5 billion manat ($8.5 billion), or 36.9 percent, from transfers from the State Oil Fund of the Republic of Azerbaijan (SOFAZ); 680 million manat ($400 million), or 1.7 percent, from extra-budgetary revenues of state institutions; and 1.1 billion manat ($647 million), or 2.8 percent, from other income.
Tax and duty collections are forecast at 16.3 billion manat ($9.5 billion), which is 820 million manat ($482.3 million), or 5.3 percent, higher than the approved figure. Of this, 4.3 billion manat ($2.5 billion), or 26.3 percent, will come from the oil and gas sector, while 12 billion manat ($7 billion), or 73.7 percent, will come from the non-oil and gas sector. Within the oil and gas sector, 41.9 percent, or 1.8 billion manat ($1 billion), of tax revenues will be paid by the State Oil Company of the Republic of Azerbaijan (SOCAR); 9.3 percent, or 400 million manat ($235.2 million), by contractors operating under the production sharing agreement of the Azeri-Chirag-Gunashli project; and 48.8 percent, or 2.1 billion manat ($1.2 billion), by contractors under the Shah Deniz project.
The calculation of expected 2025 budget revenues was based on an increase of $71 in the average sales price of Azerbaijani gas across all directions, bringing it to $313 per 1,000 cubic meters. As a result, profit tax revenues from contractors under the Shah Deniz production sharing agreement are expected to rise by 600 million manat ($352.9 million), or 40 percent.
Non-oil and gas sector tax revenues are forecast at 12 billion manat ($7 billion) in 2025, which is 350 million manat ($205.8 million), or 3 percent, higher than the approved figure for this year. During January-June of the current year, the State Tax Service under the Ministry of Economy collected revenues exceeding the forecast by 466.4 million manat ($274.3 million), or 5.7 percent, including an excess of 218.6 million manat ($128.5 million), or 3.5 percent, from the non-oil sector and 247.8 million manat ($145.7 million), or 12.2 percent, from the oil and gas sector, which has laid the foundation for higher projected revenues by year-end.
“The revenues from paid services of budgetary organizations are expected to total 680,000 manat ($400,006) by the end of 2025, which is 200,000 manat ($117,647), or 22.7 percent lower than the approved figure. Revenues from leasing state-owned land under privatized enterprises and facilities are projected at 40,000 manat ($23,529), which is 6,000 manat ($3,529), or 17.6 percent, higher than the approved figure. Other revenues are expected to reach 1.1 billion manat ($647 million), up 210 million manat ($123.5 million), or 24.4 percent, compared to the approved figure of 861 million manat ($506.1 million),” the report said.
Meanwhile, customs duties and import-related tax payments (6.6 billion manat ($3.8 billion)), as well as transfers from SOFAZ (14.5 billion manat ($8.5 billion)), are forecast to remain unchanged compared to approved levels.
