Consolidated budget deficit at 7.2% of GDP
Azerbaijan’s consolidated budget revenues were up 26.3% y/y to AZN 5.6bn (37.6% of GDP) in 1Q17 (44.3% of GDP in 1Q16), while expenditures were up 101.7% y/y to AZN 6.8bn, leading to a AZN 1.1bn deficit (7.2% of GDP), compared to a AZN 1.1bn surplus in 1Q16 (9.5% of GDP).
Revenues were driven by a 61.8% y/y increase in SOFAZ revenues and 40.8% y/y increase in oil taxes, while non-oil revenues were down 9.8% y/y.
Expenditures were driven by AZN 2.3bn in transfers from SOFAZ to CBAR to support macroeconomic stability, a 90.3% y/y increase in non-socially oriented expenditure (AZN 2.3bn), and a 14.6% y/y increase in socially oriented expenditures (AZN 1.6bn).
Non-oil consolidated budget deficit at 56.5% of non-oil GDP
With non-oil revenue down and expenditures up, non-oil consolidated budget deficit widened from AZN 1.3bn in 1Q16 (16.2% of non-oil GDP) to AZN 4.8bn in 1Q17 (56.5% of non-oil GDP). Additionally, with non-oil GDP increasing and non-oil revenue declining, share of non-oil revenue to non-oil GDP retreated from 27.9% in 1Q16 to 22.3% in 1Q17.
