Azernews.Az

By Trend

Azerbaijani President Ilham Aliyev signed a decree to approve the 2018 budget of the State Oil Fund of the Republic of Azerbaijan (SOFAZ).

According to the approved budget, SOFAZ’s revenues for 2018 are set at 11,559,956,200 manats, expenditures are set at 9,730,221,800 manats.

SOFAZ’s revenues from the sale of profitable oil and gas are forecast at 9,723,786,100 manats, acre payments at 3.612 million manats, income from oil and gas transit through Azerbaijan at 16.34 million manats.

Meanwhile, SOFAZ’s revenues from placement and management of assets are forecast at 1,042,046,100 manats, bonuses paid by investors within oil and gas agreements or in connection with their implementation – at 774,172 manats.

A lion’s share in SOFAZ expenditures will account for transfers to the state budget – 9.216 billion manats.

Expenditures for improvement of living conditions of refugees are stipulated at 200 million manats, expenditures for reconstruction of the Samur-Absheron irrigation system – at 90 million manats, expenditures for financing the Baku-Tbilisi-Kars railway project – at 176,128 manats, expenditures for financing the state program on education of Azerbaijani youth abroad in 2007-2015 – at 16,218 manats.

The expenses for SOFAZ’s management have been approved at 31,875,800 manats.

At the same time, 9,412,288 manats of expenditures will account for salaries, expenditures for the purchase of goods and services - 5,276,520 manats, for grants and other payments - 682,360 manats.

Expenditures for pensions and social payments are stipulated at 65,000 manats, for purchase of non-financial assets – at 6,034,460 manats, while 10,405,172 manats are stipulated for other expenses.

SOFAZ was established in 1999 with initial assets worth $271 million. As of October 1, 2017, assets of SOFAZ increased by 8.67 percent as compared to early 2017 and amounted to $36.02 billion.

The main purposes of SOFAZ are the accumulation of funds and the placement of assets abroad to minimize negative trends in the economy by preventing "Dutch disease".

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