Azerbaijan news

Our budget revenues in 2022 – Half of it falls on the oil and gas sector

Ministry of Finance for 2022 Azerbaijan He announced the indicators on the implementation of the state and general budget of the Republic. Last year Azerbaijan total revenues of the state budget 30 billion It was 660 million manats. This is 5 percent more than the forecasts announced during the preparation of the budget of that year. In other words, the government expected 1 billion 463 million manats more income was obtained.

The tradition has not been broken and this time too state budget the main part of its income was formed at the expense of the energy sector. According to official figures, oil-gas the amount of funds coming into the budget from the sector 15 billion It was 382 million manats. This means that last year Azerbaijan 50.2 percent of the state budget is oil-gas formed at the expense of income. Although government representatives have stated that the country’s non-oil sector has been developing over the past few years, slightly more than half of budget revenues are still provided by energy revenues. In this regard, oil-gas sharp price drops that may occur in their prices Azerbaijan remains the main risk factor for the economy.

Oil Fund transfers have decreased

Revenues from the oil and gas sector enter the state budget in two ways: direct and indirect. Transfers from the State Oil Fund to the state budget allow energy revenues to enter the budget directly. The taxes paid by energy companies to the budget also allow oil and gas revenues to have an indirect effect on budget revenues. It is clear from the indicators announced by the Ministry of Finance that 7 billion 923 million manats were transferred from the State Oil Fund to the state budget. However, it should be taken into account that the government predicted to take 11 billion 517 million manats from the Oil Fund last year. In other words, transfers from the Oil Fund to the state budget in 2022 were approximately 3 billion 600 million manats less than the forecast. This is because energy prices are higher than expected. High oil and gas prices have brought more income to the companies selling these products. They are like that. more tax paid. In this way, the government had the opportunity to save funds of the State Oil Fund.

Taxes have increased due to what?

The indicators announced by the Ministry of Finance also confirm a serious increase in the taxes paid by the oil and gas industry. According to official figures, in 2022, the oil and gas sector will contribute 7 billion 459 million manats to the budget. tax paid. This means payment of 85 percent or 3 billion 439 million manat more than the forecast. This figure also shows that last year in Azerbaijan tax 48 percent of the taxes collected by the authorities were from the oil and gas sector. According to official figures, in 2022, the state budget received tax collections in the amount of 15 billion 541 million manats.

Economy Minister Mikayil Jabbarov often makes a statement that the State Tax Service collects more taxes than forecast and attributes it to factors such as the development of the economy and the reduction of the shadow economy. But it is clear from the official indicators that The main reason why the State Tax Service collects more tax than expected is that energy prices are higher than expected. According to the results of last year, the tax authorities have 3 billion 801 million manats more than the forecast funds collected. The amount of tax collected in excess of the forecast for the oil and gas sector is 3 billion 439 million manats. Therefore, 90 percent of the funds collected in excess of the forecast are related to the increase in energy revenues. In fact, the remaining amount of increase is the result of such price increases, because in 2022, many products in the country have become more expensive, and the amount of taxes paid for those products has also increased.

In addition, customs the payments of the bodies to the budget also exceeded the forecast. Last year, the state budget received 5 billion 655 million manats from this direction. This is 22.8 percent higher than expected revenues. It should be noted that price increases customs affects the increase of growth. Paid for imported products as they become more expensive customs the volume of fees also increases.

How were the deficits financed?

According to the figures released by the Ministry of Finance, in 2022 Azerbaijan the expenses of the state budget amounted to 32 billion 63 million manats. This is about 1 percent less than the figure predicted at the beginning of last year. In other words, Although the government earned 5 percent more than the forecast, it spent 1 percent less than the forecast. During the year state budget budget deficit of 1 billion 403 million manats as expenses exceed budget revenues execution was done.

During the year, the government used various instruments to finance the deficit part of the state budget. For example, last year, the government borrowed a total of 976 million manats from domestic and foreign sources. Another 260 million manats were provided through foreign loans based on signed projects. Privatization of state-owned properties was also used to finance the budget deficit. More than 115 million manats from the privatization of state property last year funds has been achieved.

The post Our budget revenues in 2022 – Half of them are allocated to the oil and gas sector appeared first on 24 hours.

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