As a result of the drop in the price of oil in the world markets, Azerbaijan faced a sharp decrease in oil revenues, which primarily resulted in a decrease in the revenues and expenses of the state budget. In 2015, the national currency was subjected to sharp devaluation and lost its value up to two times, which aggravated the economic situation.
During 2016, the process of gradual decrease of the manat exchange rate continued. Although the government has taken a number of steps in the direction of the development of the non-oil sector in the country, improving the entrepreneurship and investment environment, and supporting local production, systematic economic reforms have not been initiated. In 2016, work was carried out on the preparation of strategic road maps related to the development prospects of the country’s economy, and the relevant documents were approved by the end of the year. In 2017, it is expected that the implementation of those documents will begin, that is, large-scale economic reforms will begin in the country. In this regard, the state budget for 2017 is of great interest to the public.
It is no coincidence that the state budget is considered a mirror of the government’s economic policy. In this regard, the analysis of the approved state budget for 2017 allows to assess the economic policy that the government has determined and is preparing to implement for the next year.
The experts of the Public Union for Assistance to Economic Initiatives prepared this opinion by conducting necessary research and analysis of the approved state budget of 2017. In the opinion, the main trends observed in the formation of budget revenues and expenses in the next year were determined, as well as the impact of the budget policy to be implemented next year on economic processes was evaluated.
The opinion was developed in order to expand public participation in the state financial policy and budget discussions, to increase the contribution of civil society to the preparation and implementation of the budget policy, and to explain the 2017 state budget to the general public.
It is planned to publish the opinion in the press, as well as to send it to the relevant institutions of the government.