On 21 December, the presidential administration of Azerbaijan submitted the draft budget for the year 2021 to the country’s parliament.

The main features of the draft state budget were: the restoration and reconstruction work in Nagorno-Karabakh, the creation of social, economic, energy, utilities, transport infrastructures in the Karabakh territories, and the creation of conditions for the residence and business activity of citizens who will return to their lands. According to the project, the state budget revenues were forecasted at the level of 25 billion 427 million manats, which will amount to 33.6% of the country’s GDP. Compared to 2020, state budget revenues are higher by 1 billion 303 million manats, or 5.4%. 

State budget expenditures were projected at 28 billion 543 million manats (37.7% of GDP), which is more by 1 billion 50 million 800 thousand manats or 3.8% compared to 2020. The revenues of the survey budget were projected at the level of 23 billion 828 million 100 thousand manats (compared to 2020, more by 1 billion 465 million 100 thousand manats, or 6.6%), and expenses at the level of 31 billion 163 million 400 thousand manats (in comparison with 2020 more by 855 million 100 thousand manats or 2.8%). The projected budget deficit will be 9.7% of GDP, which is 1.4% less than the 2020 budget deficit. 

Going more in-depth into the Azerbaijani government’s spending, 2.2 billion manats were envisaged for the restoration and reconstruction of the liberated territories in Nagorno-Karabakh, which foresees the establishment of modern infrastructures (restoration and reconstruction of electricity, natural gas, water, communications, roads, education, health, culture, housing and communal and other necessary infrastructures and cultural-historical monuments, construction of residential houses) as well as the return of Azerbaijani citizens to those territories. The expenditures in the country’s defence and security capabilities also increased. According to the draft budget 4 billion and 585 million manats are foreseen for security expenditures, which are 23.4% (2.5% more than in the previous year) of the country’s state budget. 

In regard to social issues, 1.4 billion manats were envisaged for healthcare expenditures. The funds would be directed at polyclinics and outpatients expenditures, maintenance of hospital expenditures and applied research in the field of health. 42,5 million manats have been forecasted for the sanitary-epidemiological measures in order to protect the health of people and ensure control over the sanitary-epidemiological situation. This money would help strengthen the material and technical condition of city along with regional hygiene and epidemiology centres for monitoring infected people and those in contact with them during pandemic. In the field of social protection and social security, 3 billion and 629 million manats would be spent. The education expenses are projected at 3 billion and 277 million manats.

In the field of international relations, 274.3 million manats would be spent. It was noted that 18.5 million manats of these expenditures will be directed to costs of cooperation (membership fees) with international and regional organisations (UN Secretariat, Organization of Islamic Cooperation and its agencies, CIS, Council of Europe and its agencies, Joint Institute for Nuclear Research and other organisations) and 7.5 million manats for the costs of cooperation with international and regional financial institutions. 135.3 million manats to costs for maintenance of diplomatic missions and consulates and 7 million manats to costs regarding to other international activities. 10 million manats for other costs related to the activities of diplomatic missions and consulates, 96 million manats costs related to holding international, national and other events and 36.8 million manats on foreign aid.