BAKU, Azerbaijan, Dec. 25
By Zeyni Jafarov – Trend:
The forecast deficit in the Azerbaijani state budget for 2021 will make up 3.1 billion manat ($1.8 billion), the country’s Accounting Chamber stated in its opinion over the state budget for next year, Trend reports on Dec.25.
According to the chamber, generally, the budget deficit and its financing sources are important budget parameters that must be taken into account in the coming years.
“Revenues from privatization as one of the sources of financing the deficit are projected to notably grow in 2021 compared to previous years. The envisaged funds amount to 111 million manat ($65.3 million), which is more than the indicators of 2019 and 2020,” said the chamber. “The obtained additional data show that the growth is associated with the expected revenues after the issuance of the relevant orders for the privatization of power plants and telecommunications enterprises, identified in the strategic road maps.”
As the chamber noted, despite the current growth, the level of reinvestment from privatization for 2022-2024 is expected to drop in the forecast for 2020. These distinct dynamics indicate the need to revise the strategy in the field of privatization.
Besides, one of the distinguishing features of the state budget for the next year is that the main source of financing the deficit, as in previous years, is associated with borrowings rather than the balance in the Single Treasury Account. So, at the expense of 585 million manat ($344.1 million) from the amount of external debt and via revenues from domestic borrowing, it’s planned to pay 1.3 billion manat for covering the deficit in the state budget for 2021.
In general, according to the data presented jointly with the state budget for 2021, the goals defined in the strategy are expected to be related to the reduction of nominal debt in foreign currency and the share of debt attracted at a variable interest rate in the total portfolio, summed up the chamber.
(1 USD = 1.7 manat on Dec.25)
---
Follow the author on Twitter: @jafarov_zeyni
