Azerbaijan’s allocations from the state budget for different purposes in 2021 disclosed

In 2021, some 48.9 million manats ($28.78 million) were allocated from the Azerbaijani President’s Reserve Fund for the reconstruction of cities destroyed by Armenian aggression, Finance Minister Samir Sharifov said.

He made the remark during a meeting of the Azerbaijani Parliamentary Committee on Economic Policy, Industry and Entrepreneurship during the discussion of the draft law on “the execution of the state budget 2021 of the Azerbaijan”.

In addition, funds to the tune of 12.2 million manats ($7.18 million) were spent to repair the damage caused to the civilian population as a result of the Armenian aggression.

In addition, a total of 25 million manats ($14.7 million) has been allocated for developing master plans for liberated cities.

In 2021, of the 2.2 billion manats ($1.3 billion) budgeted for the reconstruction and restoration of the liberated territories, 2.17 billion manats ($1.28 billion), or 99% of the total volume, have been spent, he added.

Coronavirus funding

Later, Sharifov said Azerbaijan had spent 807 million manats ($474.7 million) to fight the COVID-19 pandemic.

Despite the fact that last year 261 million manats ($153.5 million) was allocated to fight the pandemic, this amount was not enough, Sharifov added.

“An additional 266 million manats ($156.4 million) were allocated from the State Fiscal Reserve Fund and 280 million manats ($164.7 million) from the Compulsory Medical Insurance Fund to combat against the pandemic,” the minister said.

“The allocated funds were mainly used to purchase vaccines and related medical equipment, special payments to doctors, volunteers and other medical expenses,” he explained.

Defense and national security

In addition, he said that the amount of state budget allocations for defense and national security of Azerbaijan has increased in 2021, which was carried out by order of President Ilham Aliyev.

According to him, more than 4.5 billion manats (2.6 billion dollars) have been allocated to defense and national security, or 787 million manats (462.9 million dollars) or 21% more than ‘in 2020.

Food safety

In addition, some 454.8 million manats ($267.5 million) were allocated last year to fund food security-related activities.

The report notes that taking into account the additional costs associated with the involvement of the lands of the liberated territories in the circulation of sowing in accordance with the reforms underway in the agrarian sector, 454.8 million manats (267.5 million dollars) were allocated to agricultural producers.

Funds amounting to 467.5 million manats (275 million dollars) were totally allocated by the State to finance measures aimed at ensuring food security and 97.3 percent of them – were intended to agricultural producers.

This represents 52.2 million manats ($30.7 million) or 13% more than in 2020.

Negative aspects

The Minister noted that 2021 is a successful year for Azerbaijan from a socio-economic point of view. He said large-scale vaccination has been carried out against the COVID-19 coronavirus pandemic, and pandemic-related restrictions following targeted measures during this period have been gradually lifted.

The minister also noted that rising oil prices have helped the Azerbaijani economy recover faster than expected.

Despite the fact that the Azerbaijani economy was growing steadily in 2021, there were also negative external developments in the country, such as rising inflation.

According to him, one of the causes of inflation was the global increase in food prices.

“In this regard, Azerbaijan has decided to implement various subsidy programs,” Sharifov said.

Parliamentarians, representatives of the Ministry of Finance and the Chamber of Accounts attended the meeting.

The chairman of the committee, Tahir Mirkishili, briefed the meeting participants on a draft law.

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James V. Hayes