Azerbaijan increases defence, security expenditures

Azerbaijan’s Finance Ministry has predicted defence and security expenditures to exceed 6.4 billion manats ($3.76 billion) in 2024, which is 6 per cent more than the approved forecast for 2023.

After Azerbaijan restored its territorial integrity and established just and lasting peace in the region, many political and diplomatic steps were taken to normalize relations with Armenia, Report quotes the ministry as saying.

However, the Armenian government's unconstructive approach to the peace process, the separatist tendencies observed and the failure of attempts to create an atmosphere of stability and co-operation in the region pose a threat to the desired peace and stability.

"In this regard, to further strengthen the country's defence capability and national security, modernise the material and technical supply of the army and continue activities related to building up the military potential, the State Budget for 2024 provides for the creation of a reserve fund of 3 billion manats ($1.76 billion)," the ministry said in a statement.

Meanwhile, the document prepared by the Finance Ministry "Statement on the preliminary indicators of the state and consolidated budgets for 2024" reads that Azerbaijan's state budget revenues are expected to reach 28.5 per cent of GDP, or 33.8 million manats ($19.9 million) if the average annual export price of one barrel of crude oil is assumed to be $60.

As much as 49.6 per cent or 16.8 million manats ($9.9 billion) of the said figure belongs to the oil sector, while 50.4 per cent or 17 million manats ($10 million) belongs to the non-oil/gas sector, the Ministry writes.

The document also forecasted that tax revenues to the state budget will reach almost 18 billion manats, and non-tax revenues will exceed 16 billion manats ($9.4 billion).

At the same time, the Ministry stated that the nominal income of Azerbaijan’s population for the next year is forecasted at 84.1 billion manats ($49.5 billion), nominal expenditures - 81.4 billion manats ($47.9 billion). The figures are by 8.3 per cent and 8.6 per cent more compared to the projections for the current year.

In 2024, the average monthly salary in the country is projected at $980 ($576.5), which is 5.4 per cent more than in 2023.