Azerbaijani Oil Fund Budget for 2016: Brief Historical Review

Azerbaijani Oil Fund Budget for 2016: Brief Historical Review

The draft budget for 2016 of State Oil Fund of Azerbaijan Republic (SOFAZ) has been discussed by the Supervisory Board of the fund. According to the SOFAZ, the fund’s 2016 budget revenues are forecasted as 6.7 billion manta and expenditures at 8.26 billion manat. SOFAZ reported that the Supervisory Board recommended the Fund’s 2016 draft budget, including the major directions of its investment policy and projects for the approval by the President of Azerbaijan.

SOFAZ’s budget revenues both in manat and dollar terms will be declined in 2016. Meanwhile, the fund’s budget deficit will be $ 1.55 billion US since it is 18.8% of projected costs.

CESD experts underlines that declining of crude oil price in the world market dramatically impacts not only on Azerbaijan’s total export income but also on SOFAZ’s budget revenues. Oil income decreased by 22.0 % in October 2015 compared previous month due to increasing of oil output and of the price in the indicated period. In fact, total monthly income is still far behind of last summer’s monthly incomes. If the country received only $ 660 million US in October 2015, but income was $ 1.76 billion US in June 2014. It confirms that dropped oil price in the world market has dramatically decreased Azerbaijan’s revenues.

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