Reduction of SOFAZ transfers to state budget not affects project financing

The reduction in transfers from the State Oil Fund of Azerbaijan (SOFAZ) to the country’s state budget for 2022 will not affect other SOFAZ-financed projects.

“At the same time, expenses for other projects financed by the fund will be specified. This year, the state budget has been adjusted and changes have been made to some key parameters and indicators of the consolidated budget in the context of revenues and expenditures in 2022, including the base price for crude oil, the volume of transfers from the oil fund to the state budget,” Report quotes an unnamed source in SOFAZ as saying.

According to the source, given the fact that in compliance with the Law “On the Budgetary System”, the fund’s budget is an integral part of the consolidated budget, it became necessary to make appropriate changes in the volume of transfers from SOFAZ to the state budget.

“As you know, one of the main goals of SOFAZ is the accumulation of oil revenues for future generations. SOFAZ will save 1.192,5 billion manats ($701 million) in expenditures by reducing transfers to the state budget in 2022. This will further increase the fund’s projected volume of foreign exchange assets at the end of the year,” the source added.