Amendments to the 2018 State Budget in Azerbaijan: Back to the oil boom period?

Abstract

As expected, in the 2nd week of June, the Azerbaijani government started to revise the state budget and make amendments to it. It should be noted that the higher-than-expected prices of hydrocarbon products in global markets have created a basis for the revision of the state budget, a practice frequently seen in the Azerbaijani experience. The main points relevant to public interest can be grouped as follow: - What changes in fiscal policy will occur following the increase in oil prices? - Will spending of oil revenues accelerate? - Which functional expenses will increase most in the case budget expenditures are increased? - Will social expenditures (salaries, funds, pensions and social allowances) increase? The Center for Economic and Social Development (CESD) constantly focuses on important social and economic processes in Azerbaijan. In this paper, we will try to answer the questions that are written above based on officially publicized information. We note with regret that the level of public participation in the budget process remains low and the law on amendments of the state budget is not entirely publicized yet, limiting our access to information. It is expected that the law will be discussed in the National Assembly session scheduled for June 29.