In the state budget of 2021, Azerbaijan plans to spend 506 million AZN for agricultural subsidies, equaling 1.8% of its total expenditures. Considering the importance of the agriculture for the rural population, as well as the hefty cost of the program, I decided to write a brief post about the subsidies.
Author: mukhtaroffelmir
Manat: Stability or Sustainability?
On April of last year, I wrote about the then-mounting pressure on Azerbaijani manat (AZN) and concluded that we can expect the currency to be devaluated by the end of the year 2020. However, time has shown that manat managed to preserve its stability. I decided to write this post to analyse why my prediction was inaccurate and to mention couple of relevant points.
Story of the Unflown Airport – Zagatala International Airport
It always seemed odd to me that a country like Azerbaijan with small area/population and underdeveloped tourism sector has 6 international airports. To add insult to the injury, the government recently announced the construction of another international airport in Fuzuli. There are even rumors of one more airport to be built in Kalbajar in the near future. Considering all these, I decided to take the specific example of Zagatala and showcase why such projects are likely to bring minimal benefit at best.
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State Budget of Azerbaijan 2021
Due to the recent war in Karabakh, the presentation, discussion, and approval of the state budget of Azerbaijan was delayed until the very last days of December. As the proposal has been adopted by the Parliament and signed into law by the President, I have decided to take a brief look and share with you the points that I deem noteworthy.
Continue reading “State Budget of Azerbaijan 2021”Amendments to the 2020 State Budget of Azerbaijan
The Ministry of Finance of Azerbaijan recently announced the proposal for the amendments to the 2020 state budget. The move comes as no surprise, given the current economic climate. However, there is much to discuss in amendments, particularly concerning the State Oil Fund and the Budget Rule…
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Oil Sector of Azerbaijan in 2020 and its Implications for the State Budget
The Coronavirus pandemic has affected almost every sector of the global economy in the first five months of 2020. To add insult to injury, the economy of Azerbaijan has been further pressured by the historically low oil prices. In this post, I decided to take a brief look at the oil sector of Azerbaijan today and its potential implications for us in the near future.
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An Unlikely Hero – How Gold Can Aid Manat?
In my latest post, I delved into the topic of Azerbaijani Manat’s grim-looking short-term future following the surging demand for foreign exchange in March and concluded that there is a substantial risk of devaluation during 2020. In this post, I am going to share a concept on how the government can at least delay this devaluation for the near future and avoid exacerbating the economic situation in the country already troubled by coronavirus epidemic…
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“Free” Education of Azerbaijan
Many of the social, economic and political problems of Azerbaijan can be explained by a multitude of factors. In my opinion, above all, we must recognize the impact of the education system. Therefore, I decided to dedicate my next couple of posts to the national education policy.
Fiscal Rule of Azerbaijan: A Positive First Step?
As a broad term, fiscal policy refers to the management of taxes and expenditures by governments. It is certainly the number one tool that the governments utilize to intervene into the national economy. That intervention, on the other hand, should have definite restraints, which brings us to the topic of fiscal rules…
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State Oil Fund of Azerbaijan – A Disoriented SWF
State Oil Fund of Azerbaijan (SOFAZ) without a doubt plays a major role in the national economy. Created in 2000, the Fund’s vital role in Azerbaijan motivated me to share my thoughts on the matter…
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